How much do you need to retire at 67?
To retire at age 67 and spend about $60,000/year after tax ($5,000/month) without running out over a ~28-year retirement, you'd need roughly $1,190,000 invested — about 20× your annual spending. The exact figure depends on how much you spend; here's the full breakdown.
The nest egg you need at 67, by spending level
How much you need scales with how much you spend. Retiring at 67 (a ~28-year horizon), 6% nominal return, 3% inflation, no Social Security:
| Spend / yr | Spend / mo | You need about |
|---|---|---|
| $40,000 | $3,333 | $790,000 |
| $50,000 | $4,167 | $990,000 |
| $60,000 | $5,000 | $1,190,000 |
| $80,000 | $6,667 | $1,610,000 |
| $100,000 | $8,333 | $2,020,000 |
Why it's more than 25× your spending
The classic "multiply your spending by 25" rule assumes a 4% withdrawal and a 30-year retirement. Retiring at 67 stretches the horizon to 28+ years, and — crucially — the rule ignores taxes. Because withdrawals from a traditional 401(k) are taxed as ordinary income, you need a larger pre-tax balance to net a given amount of spendable cash. That's why the figures above land above a naive 25× estimate.
Two levers cut the number substantially: Social Security (inflation-adjusted lifetime income that shrinks what you draw from the portfolio) and a paid-off home (lower fixed spending). Neither is in the baseline above — add them in the calculator and the required nest egg often drops sharply.
Full benefit, smallest multiple, and the runway to 73
At 67 — full retirement age for today's retirees — Social Security pays its full benefit with no early-claim reduction. Because that guaranteed income covers a large share of a typical spending plan, the portfolio has the smallest job it will ever have, and the multiple of annual spending you need to have saved is usually at its lowest.
Delaying past full retirement age still earns a delayed-retirement credit each year until 70, so retirees with other income sometimes wait to secure an even larger check and shrink the portfolio's role further.
The other item worth a look is the RMD runway. Required minimum distributions start at 73 — age 75 for those born in 1960 or later — leaving a short window to convert or spend down traditional accounts at current brackets before mandatory withdrawals, and the higher taxable income they bring, begin.
Common questions
How much do I need to retire at 67?
To spend about $60,000/year after tax and not run out over a 28-year retirement, roughly $1,190,000. For $40,000/year you'd need about $790,000; for $100,000/year, about $2,020,000.
Is 25× my expenses enough to retire at 67?
Not quite, in this projection — retiring at 67 means a long 28-year horizon, and 25× ignores the taxes owed on traditional-account withdrawals. The figures here run somewhat above 25×. Social Security and lower fixed costs can close the gap.
Does this include taxes and inflation?
Yes. The nest-egg figures are the amount needed after the federal (and where relevant, state) tax on withdrawals, with spending rising each year for inflation.