MyWealthCheckFor a retirement from about 65 to 90, most people need savings of roughly 18 to 25 times the part of their first-year retirement spending that government and workplace pensions don’t cover. To retire early, from 40 to 55, the usual range is 25 to 33 times your spending, because the money has to last longer. Where inflation is higher, as in India, it’s more like 33 to 40 times.
The method is the same everywhere. What changes from country to country is inflation, what the state pays and when you can touch your retirement accounts.
The method in three steps
- Grow today’s spending with inflation to the year you retire. At 3% a year, spending doubles in about 24 years.
- Subtract guaranteed income: a state pension, a workplace pension, rent.
- Multiply what’s left by 18 to 25 for a normal retirement, or 25 to 33 for an early one. Our retirement calculator and FIRE calculator do this year by year instead of using a single multiple, and test the result against a market crash.
Country by country
The examples use each country edition’s default assumptions and come before any state pension. Rules are as of November 2026; each edition lists its official sources.
| Country | Example: retire in 30 years, before state pension | State pension | Locked retirement savings open at |
|---|---|---|---|
| USA | $4,000 a month today → about $116,500 a year → $2.1–2.9 million | Social Security, from 62 (reduced) to 70 | 59½ for 401(k)s and IRAs, with exceptions |
| UK | £3,500 a month → about £101,900 a year → £1.8–2.5 million | New State Pension, £241.30 a week in full, from 66 to 68 | 57 from April 2028 (55 today) |
| Canada | C$5,000 a month → about C$125,900 a year → C$2.3–3.1 million | CPP from 60 to 70; OAS from 65 | RRSPs and TFSAs aren’t locked; LIRAs usually from 55 |
| Australia | A$5,000 a month → about A$145,600 a year → A$2.6–3.6 million | Age Pension from 67, income and assets tested | Super at 60, once you retire |
| New Zealand | NZ$5,000 a month → about NZ$125,900 a year → NZ$2.3–3.1 million | NZ Super from 65, not means-tested | KiwiSaver at 65 |
| India | ₹50,000 a month → about ₹25.8 lakh a year in 25 years → ₹5.2–6.5 crore | No universal state pension | NPS from 60 (or after 15 years); EPF when you leave work |
These figures look large because they’re in future money. In today’s money, the UK example is about £42,000 a year of spending, and a full State Pension of about £12,550 a year would cover nearly a third of it.
What changes the number most
- Your spending. Every extra 1,000 a month you spend today adds 18 to 25 times its inflated yearly cost to what you need. It’s the one input fully under your control.
- State pensions. In New Zealand, NZ Super alone covers a large share of a modest budget. In Australia the Age Pension is means-tested, so wealthier retirees may only get a part pension later. In India you’ll usually have to fund everything yourself.
- Inflation. India’s default of 6% roughly doubles costs every 12 years, which is why its multiples are higher.
- Owning your home. Retiring without rent or a mortgage removes the biggest cost for most households.
- Retiring before your accounts unlock. If you stop working at 50 in the UK, Australia or New Zealand, the years until your pension, super or KiwiSaver opens must come from savings outside them. The FIRE calculator editions explain how to plan that bridge.
- How long you plan for. Plan to at least 90, and to 95 if your family tends to live long.
Frequently asked questions
Is the 25 times rule right for everyone?
It’s a starting point for a 30-year retirement based on US market history (the 4% rule). A shorter retirement can use less; a longer one, or a country with higher inflation, needs more.
Should I count my state pension?
Yes, if you’re reasonably sure you’ll qualify. Check your own forecast with the official service in your country, and subtract it from your spending in today’s money before you use a calculator.
What if I live in a country not listed here?
The global retirement calculator works in any currency. Enter your local inflation and after-tax returns, and subtract any pension you expect.
For education only, not financial advice. Read the disclaimer.