I Asked Grok How Much Money Is Needed To Retire in 20 Years — Here’s What It Said

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The average American believes they’ll need $1.26 million to retire comfortably, according to the 2025 Planning & Progress Study from Northwestern Mutual. But according to Grok, the artificial intelligence (AI) chatbot developed by Elon Musk-owned xAI, the actual amount needed depends on expenses, life expectancy and other sources of income. 

GOBankingRates asked Grok to make a recommendation for someone hoping to retire in 20 years, at their full retirement age of 67. Here’s how it calculated that number, as well as some tips for achieving your own retirement savings goals.

How Grok Calculated Its Retirement Savings Recommendation

To determine how much money a person hoping to retire at full retirement age in 20 years would need, Grok was given this profile:

• Current income of $72,000
• Social Security to begin at full retirement age
• No retirement savings currently
• 30-year life expectancy after retirement.

Grok estimated that $866,575 would be needed to retire in 20 years, and it based its recommendation on several assumptions.

Most People Need About 70% of Their Current Income in Retirement

Total spending usually drops after retirement. For someone earning $72,000, 70% equals $50,400 per year in today’s dollars, or $91,028 in 2045 dollars, adjusted for 3% inflation.

Social Security Reduces the Savings Burden

Social Security retirement benefits count toward income. Grok estimated an annual benefit of $56,365 (2024 dollars) for a 47-year-old earning $72,000 per year, based on Social Security Administration formulas. That leaves a retirement income gap of $34,663 for savings to cover.

You can find your estimated Social Security benefits in your My Social Security account on the Social Security Administration website. The site also has benefits calculators that let you experiment with different scenarios to see how they affect your benefits.

The 4% Rule Ensures That Savings Last 30 Years

The 4% retirement rule says chances are good that you can withdraw 4% of your investments in the first year of retirement, and 4%, adjusted for inflation, in subsequent years, without running out of money for at least 30 years.

Grok divided 0.04 (a 4% withdrawal rate) by $34,663 (income gap) to arrive at $866,575 as the amount needed to retire in 20 years. For this example, it then recommended saving 28% of income per month, assuming a 7% annual return, to reach that amount.

Grok’s Advice on How To Retire in 20 Years

Grok offered these tips for meeting your own 20-year retirement goal.

• Start saving now. If you can’t save 28% of your salary, start with whatever you can afford, and increase the amount as you’re able.
• Maximize tax-advantaged accounts, starting with your 401(k) if you get matching contributions.
• Allocate 60% to 70% of your retirement savings to stock index funds and 30% to 40% to bonds, or simply choose a target-date fund for 2045.
• Rebalance your portfolio annually, and shift to 50% bonds by the time you turn 60.
• Establish an emergency fund to help you avoid debt and/or early withdrawals from your retirement account if you’re hit with a large, unexpected expense.

Editor’s note: This article is for informational purposes only and does not constitute financial advice. Investing involves risk, including the possible loss of principal. Always consider your individual circumstances and consult with a qualified financial advisor before making investment decisions.

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