Here’s How Much You Need To Retire With a $100K Lifestyle

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If you earn $100,000 a year and want to maintain that income into retirement, plus account for inflation, how much would you actually need to save? That’s the question Eric, a GOBankingRates reader, recently submitted as part of our Top 100 Money Experts series. To help answer it, we turned to Jamie Hopkins, CEO of Bryn Mawr Trust Advisors, chief wealth officer for WSFS Bank and a Wall Street Journal best-selling author.

Hopkins has extensive experience guiding clients on retirement planning and wealth management, and his insights can help anyone looking to determine how much they need in their retirement nest egg. 

A Quick Initial Analysis 

To give Eric a broad sense of what he might need, Hopkins shared a general rule of thumb: If you’re 10 years or more from retirement, you will likely need about 70% to 80% of your pre-retirement income to maintain your lifestyle.

Since Eric makes $100,000 a year, that translates to roughly $70,000 annually. But that begs another question: How much would Eric need in savings to generate that amount of money? 

“A short-form analysis is that for a 30-year retirement, you need 25 times that amount, or $1,750,000 saved for retirement,” Hopkins said. “That assumes you have no Social Security benefits. The average Social Security benefit for 2025 is about $2,000 a month, or $24,000 a year. Adding this to the equation, you’re likely right around $1.1 million.” 

Hopkins was clear that this estimate is a conservative starting point, as it does not account for the nuances of Eric’s specific finances.

“If you work past 65, have more in Social Security, or spend less in retirement, you could need far less in savings,” he added.

The Factors That Drive the Numbers 

There’s rarely a smooth, perfect path that leads you to the ideal number for a comfortable retirement. Both external and personal factors — like inflation, general health or expected longevity — can have a profound impact on how much you’ll need. 

“When we talk about how much money you’ll need in retirement, everything starts with the assumptions,” Hopkins said. “Retirement age, life expectancy and inflation are the three biggest drivers of the math.” 

He encouraged readers to think of their retirement savings goals as a “moving target,” subject to change depending on any of these key factors. He broke down how each one could affect the outcome: 

• Retirement age: To retire at 65 or 70 — that is the question. How you answer it could change the numbers dramatically. “Those extra years of earning — and fewer years of drawing down your portfolio — make a huge difference,” Hopkins said. “Pushing back Social Security for a few years can also have a huge impact.” 
• Life expectancy: One of the biggest mistakes retirees make is underestimating how long they’ll live, leaving them vulnerable to outliving their savings. Hopkins recommends planning for at least 30 years in retirement. Of course, retiring later naturally shortens the period of withdrawals.
• Inflation: Hopkins noted that even at 2% to 3% per year, the cost of living doubles roughly every 25 years. If a reader like Eric wants $100,000 of purchasing power today, he might need $200,000 or more annually in the later retirement years. 

“This is one reason why Social Security and staying invested in the markets is so important — to help counterbalance inflation,” he added. 

Hopkins acknowledged that it’s a lot to consider, but ignoring any of these factors could mean falling short — even for high earners.

Building a Smart Strategy 

Many are familiar with the “4% rule,” which suggests withdrawing 4% of your initial retirement savings annually, adjusted for inflation, over 30 years, assuming a balanced portfolio of large-cap U.S. stocks and intermediate-term government bonds. Hopkins called it a useful starting point but urged readers to treat it more like a guideline than a guarantee. 

“By taking only 4%, in most situations you would die without spending down a single dollar of your savings, indicating this approach might be too conservative,” he explained. “If you expect to be retired for more than 30 years, you could reduce the spending rate. If you expect to work longer and have a shorter retirement, you can increase your spending rate.” 

Put simply, for every $1 million saved, you could expect about $40,000 in annual withdrawals, adjusted for inflation. 

“To support $100,000 of annual income from your investments for 30 years without running out of money, you’d be looking at closer to $2.5 million,” Hopkins said. 

However, withdrawal rate isn’t the only key part of a smart retirement savings strategy. How you structure your money can also work to your advantage. Hopkins described the building blocks of a strong plan: 

• Diversify across stocks, bonds and cash to balance growth and stability. 
• Consider bucket or time-segmentation strategies, where short-term spending needs are held in safer assets while longer-term money remains invested for growth. 
• Build in flexibility — spend a little less in down markets and more when the market is strong. 

Working with a financial advisor helps customize a plan, including withdrawal strategies tailored to your goals.

Working in Retirement 

Though working in retirement may sound counterintuitive, Hopkins shared that any income you earn — whether through a part-time job, freelance consulting or rental property — can alleviate some of the burden of building a large nest egg. 

“Working longer is the most powerful thing you can do if you’re nearing retirement and facing a retirement income shortfall,” he said. “Working for just six months longer can be equal to saving an extra 1% of your earnings for 30 years.” 

Hopkins offered a hypothetical: If Social Security provides $30,000 a year and part-time work adds $20,000, the required savings to reach $100,000 annual income drops to $50,000.

“This is why I tell people: Retirement isn’t always a hard stop for working. Instead, it’s a time when work can become optional,” he said. “More Americans are blending work and retirement, which makes both the financial and lifestyle sides of retirement easier to manage.” 

Bottom Line 

Hopkins stressed that there is no single “magic number” for retirement savings. 

“For one person, $2.5 million might be more than enough. For another, even $5 million may not cover their lifestyle and healthcare needs,” he said. “And for others, $500,000 plus Social Security might be plenty. In the end, it’s about your desired lifestyle, your expenses and your income.” 

Ultimately, Hopkins advised readers to work with a trusted financial planner, stress-test their plans and adjust over time. 

“At the end of the day, retirement success isn’t about hitting a perfect number — it’s about having a plan that adapts as your life unfolds,” he said. 

This article is part of GOBankingRates’ Top 100 Money Experts series, where we spotlight expert answers to the biggest financial questions Americans are asking. Have a question of your own? Share it on our hub — and you’ll be entered for a chance to win $500.

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