You work hard and one day, you want to retire. Sit on the beach enjoying the scenery. Travel to all the places you weren’t able to see while you were working.
But we’ve been asking the wrong question. It’s not how much do you need to retire — it’s can you retire at all?
How do you even calculate how much is “enough”? Well, let’s take a look:
“In the past the assumption was simply based on gross income. If you earned $50,000 just before retirement then you need to have $40,000 coming in during retirement. This study factors in savings because if you are saving money each year for retirement, once in retirement you won’t be saving and instead withdrawing so that shouldn’t count towards your required income. For example, let’s say you make $50,000 a year and you are putting $6,000 into your 401(k) each year. Instead of just taking 80% of $50,000 you would take 80% of $44,000 ($50,000 – $6,000), or therefore a retirement income of $35,200.”
Reading that quote, I think a lot of people aren’t being realistic when figuring out how much they’ll need. Instead of asking how much, the better question is: Can I retire at all?
Let’s look at the real picture…
What We Leave Out of the Equation
When thinking about retirement income, people tend to skip over the messy variables — the things that blow a clean financial plan to pieces. Say your goal is to save $6,000 a year (about $115 a week). To hit that consistently, you’d have to:
- Have a clear idea of how many kids you want — and stick to the plan. This is where many people quietly sabotage their future. A child adds, on average, 18 years of financial responsibility, which often means 18 more years of work.
- Factor in what you’ll actually spend when you retire. If you plan to travel, those costs need to be in the plan — not imagined away.
- Prepare for the possibility of supporting your parents or in-laws. Depending on their health or situation, this can become a major ongoing cost.
- If your retirement plan involves selling your house, what if the market turns? Many people who planned to sell end up barely breaking even or renting it out just to generate something.
There’s no end to what can throw a savings plan off track. Unexpected expenses. Job loss. Companies mismanaging pension or 401(k) plans.
Surviving, Not Saving
Realistically, many people aren’t saving — they’re surviving. They’re trying to keep the lights on, cover the bills, and maybe have enough left over to enjoy the weekend. Retirement feels distant. Planning for it? Optional. Skippable.
At 25, the biggest financial concern might be missing out on Friday night. Long-term consequences don’t register. No thoughts about working into their 70s — or dying on the job.
Every day, people enter unrealistic relationships that set them back decades. You’d be surprised how many people just add 18 years to their retirement timeline. Want to retire at 62? Some figure they can have kids at 44 and still make that work. Unless they started saving in their early 20s and never stopped, it’s not happening.
Want to start a business? What if it fails? Did you factor that into your retirement plan? What about that car you can’t really afford, but looks good in the driveway? The latest tech you don’t need but buy anyway to stay “current”? All those takeout meals? It adds up. That’s how people end up working at 70 — not because they want to, but because they have to.
The Real Question
Maybe it’s not about how much you’ll need.
Maybe it’s about whether it’s possible at all.
And the earlier you face that question, the more honest your answer can be — even if it’s not the one you hoped for.
📌 Changelog
- May 8, 2025: Article lightly edited to strengthen focus. Added image.
- Sep 20, 2014: Original article posted.
