What Spending $3K Monthly vs. $5K vs. $10K Looks Like for Retirement Savings

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Planning for retirement often starts with one big question: How much money will help retirees live comfortably once the paychecks stop?

There’s not one rule for every retiree or every situation, but the 4% rule is a popular guideline that gives a rough guide for retirement savings. It suggests withdrawing 4% of savings in the first year and increasing withdrawals with inflation each year. It doesn’t factor in things like market swings or unexpected expenses, but it gives an idea of the savings needed to fund a retirement lifestyle.

Based on that rule, here’s roughly the savings needed to support monthly spending of $3,000, $5,000 or $10,000, based on the current inflation rate of close to 3%.

$3,000 Monthly Spending

To spend $3,000 per month, a nest egg of roughly $900,000 is needed.

20-Year Retirement

• First year: $36,000
• Year 10: $46,316
• Final year: $61,015

25-Year Retirement

• First year: $36,000
• Year 10: $46,316
• Final year: $66,220

30-Year Retirement

• First year: $36,000
• Year 10: $46,316
• Final year: $80,288

$5,000 Monthly Spending

To spend $5,000 per month, a nest egg of approximately $1.5 million is required.

20-Year Retirement

• First year: $60,000
• Year 10: $77,194
• Final year: $101,692

25-Year Retirement

• First year: $60,000
• Year 10: $77,194
• Final year: $110,367

30-Year Retirement

• First year: $60,000
• Year 10: $77,194
• Final year: $133,814

$10,000 Monthly Spending

To spend $10,000 per month, a nest egg of about $3.0 million is needed.

20-Year Retirement

• First year: $120,000
• Year 10: $154,388
• Final year: $203,384

25-Year Retirement

• First year: $120,000
• Year 10: $154,388
• Final year: $220,734

30-Year Retirement

• First year: $120,000
• Year 10: $154,388
• Final year: $267,628

Including Social Security

The average monthly Social Security benefit for January 2026, after the annual cost-of-living adjustment (COLA), will be $2,071 per month, or roughly $24,852 per year, according to the Social Security Administration (SSA).

For $3,000 monthly spending, Social Security would cover most of the first-year income, reducing the required nest egg to $283,500. For $5,000 monthly spending, the nest egg would reduce to around $882,000. For $10,000 monthly spending, the nest egg would reduce to roughly $2,437,000.

Even with Social Security, these figures assume steady inflation and 4% withdrawals, and there are a variety of different life and financial factors that would change the amount of savings retirees need. That’s why it’s important to see these figures as a guideline to help plan retirement, not a guaranteed projection.

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