ChatGPT: Here’s How Much Wealth You Need To Feel ‘Financially Safe’ in 2026
Written by
Laura Beck
Edited by
Brendan McGinley
Commitment to Our Readers
GOBankingRates' editorial team is committed to bringing you unbiased reviews and information. We use data-driven methodologies to evaluate financial products and services - our reviews and ratings are not influenced by advertisers. You can read more about our editorial guidelines and our products and services review methodology.
20 Years
Helping You Live Richer
Reviewed
by Experts
Trusted by
Millions of Readers
Financial safety means different things to different people. For some, it’s having enough to cover bills without stress. For others, it’s the freedom to retire early or travel without checking bank balances.
So I asked ChatGPT a straightforward question: how much wealth do you actually need to feel financially safe in 2025?
The answer was more nuanced than I expected, but it gave me clear benchmarks to work towards in attaining fiscal security.
The Magic Number Most Americans Are Aiming For
ChatGPT started with what surveys show Americans believe they need. According to Northwestern Mutual’s 2025 research, the average target amount people think they need to retire comfortably is approximately $1.26 million.
That number has actually dropped slightly in recent years as inflation has stabilized and expectations have shifted. But ChatGPT was quick to point out that this is just an average. Your personal number could be much higher or lower depending on where you live, your lifestyle and your health expenses.
The 25x Rule and the 4% Withdrawal Strategy
ChatGPT invoked two related concepts that financial planners use constantly: the rule of 25 and the 4% withdrawal rule.
Here’s how it works. You calculate how much you expect to spend annually in retirement, then multiply that by 25. That gives you a target nest egg. The idea is that you can safely withdraw about 4% of your savings each year without running out of money.
So if you plan to spend $60,000 per year in retirement, you’d need $1.5 million saved. If you need $80,000 per year, aim for $2 million.
ChatGPT emphasized that this assumes you’re withdrawing from investments, adjusting for inflation each year and not relying solely on Social Security or pensions.
Three Tiers of Financial Safety
This is where the answer got interesting. ChatGPT broke down financial safety into three levels, based on lifestyle expectations.
The first tier is modest security. This covers basic expenses, modest housing, food, healthcare and an emergency fund with maybe occasional travel. If you expect to spend around $40,000 to $50,000 per year, you’d need about $1 million to $1.25 million saved.
The second tier is comfortable and stable. This includes decent housing, predictable costs, regular vacations, occasional splurges and a solid healthcare buffer. For a lifestyle that costs $60,000 to $80,000 per year, you’d need $1.5 million to $2 million.
The third tier is well-positioned with freedom and flexibility. This means few money worries even if markets drop, ability to travel generously, support for family members and possibly early retirement. This typically requires $2 million or more depending on your goals.
Why 2025 Makes This Harder
ChatGPT pointed out that the traditional assumptions about financial safety are shakier than they used to be. Rising medical costs, expensive housing in many regions and uncertain investment returns mean the 4% withdrawal rule might be too optimistic.
Many people are now planning for hybrid retirements that combine savings withdrawals with part-time work, side income or rental property income. Relying entirely on a nest egg feels riskier than it did a generation ago.
There’s also no one-size-fits-all magic number. Your personal situation informs your answer more than national averages.
How To Calculate Your Personal Number
ChatGPT walked me through a simple framework for figuring out my own financial safety target.
First, estimate your expected annual spending in retirement. Include housing, healthcare, food, leisure, travel and unexpected costs.
Second, multiply that number by 25 to get a base nest egg target.
Third, subtract any expected income that isn’t from investments. This includes Social Security, pensions or rental income.
Fourth, add a buffer for unpredictables like inflation, medical emergencies, longer life expectancy or market downturns.
Finally, adjust based on your age, lifestyle, family situation and location. High-cost areas or dependents raise the amount you’ll need. Simpler lifestyles lower it.
The Bottom Line
ChatGPT’s final recommendation was practical. For someone planning a reasonably comfortable retirement with housing paid off, modest travel and good healthcare coverage, aim for $1.5 million to $2 million in savings and investments.
Factor in other income sources to reduce how much you’re pulling from investments each year. Keep a healthy emergency fund, diversify your portfolio and maintain a long-term investment strategy.
That approach gives you flexibility, a buffer against market or inflation risk and the ability to enjoy retirement without constant financial anxiety.
Financial safety isn’t about hitting some arbitrary number. It’s about building enough wealth to support the life you actually want to live.
Need a little extra holiday magic in your budget? MoneyLion, a sister company of GOBankingRates, is giving away $2,000 a day through Jan. 24, 2026. Sign up and see if this festive windfall lands under your tree.
More From GOBankingRates
