How Much Do You Need To Retire Rich? Here’s What Most Americans Say

When it comes to retirement , one of the burning questions in people’s minds is: How much do I need to retire? The answer depends on quite a few factors, including location, healthcare needs, monthly living expenses, debt load and household size.

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It also varies based on how the individual plans to spend their retirement, and what kinds of hobbies or interests they wish to pursue. Someone who wants to travel a lot during retirement, for example, might need a lot more money to retire well.

GOBankingRates surveyed roughly 1,000 American adults to find out how much they think they need to retire rich. While there’s no one-size-fits-all answer, here’s what they said — as well as how to determine your own numbers .

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Retirement Savings Needed for Individuals

As part of the survey, respondents answered the question: How much savings do you feel a single person needs to retire rich? Here’s a breakdown of the results:

• $500,000 or less — 25.13%
• $500,001 to $1,000,000 — 15.72%
• $1,000,001 to $1,500,000 — 12.31%
• $1,500,001 to $2,000,000 — 5.31%
• $2,000,001 to $2,500,000 — 7.31%
• $2,500,001 to $3,000,000 — 6.71%
• $3,000,000 to $3,500,000 — 4.00%
• $3,500,001 to $4,000,000 — 2.00%
• $4,000,001 to $4,500,000 — 2.70%
• $4,500,001 to $5,000,000 — 2.90%
• $5,000,001 or more — 15.92%

As you can see, the majority of respondents (53%) feel they need $1.5 million or less to retire rich. Roughly 31% believe they need between $1.5 million and $5 million.

Notably, 16% of respondents said they need over $5 million to retire rich. This is about on par with those who thought they only needed $500,001 to $1 million to achieve that same goal.

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Retirement Savings Needed for Couples

Many people retire with a spouse or partner, so it stands to reason that the amount of money needed to retire rich would change for couples. As per survey results, here’s how much people believe they need to retire rich as a couple:

• $500,000 or less — 14.71%
• $500,001 to $1,000,000 — 11.81%
• $1,000,001 to $1,500,000 — 9.01%
• $1,500,001 to $2,000,000 — 9.01%
• $2,000,001 to $2,500,000 — 7.81%
• $2,500,001 to $3,000,000 — 6.01%
• $3,000,000 to $3,500,000 — 3.90%
• $3,500,001 to $4,000,000 — 3.90%
• $4,000,001 to $4,500,000 — 6.01%
• $4,500,001 to $5,000,000 — 4.40%
• $5,000,001 or more — 23.42%

In this case, nearly a quarter of respondents said they need over $5 million to retire rich as a couple. About 36% said they need $1.5 million or less, while 41% said they need $1.5 to $5 million.

For the most part, couples feel like they need more money to retire wealthy than individuals do. While the cost of living likely won’t necessarily double for couples, some costs will increase with more than one person in the household. This can include:

• Groceries
• Healthcare (including regular medical expenses and long-term care)
• Utilities
• Debts (if both people owe money)
• Entertainment and hobbies

Make a Budget and Forecast Retirement Expenses

Knowing what other people think they need to retire well can be helpful, but everyone’s situation is different, so you should make a plan based on your actual circumstances and needs. You might want to start with a budget and an estimate of your future expenses.

“Prior to thinking about how much money you need to have saved for retirement, I would highly recommend putting together a detailed budget and forecast for how much you will be spending in retirement. In my view, it is much more important to first understand what your expenses will be before you try to come up with a dollar amount that you will need to have saved,” said Chris Urban, CFP, RICP and founder of Discovery Wealth Planning .

Among the largest expenses to consider include:

• Housing (rent, mortgage, insurance, etc.)
• Healthcare (insurance premiums, out-of-pocket maximums, Medicare, etc.)
• Taxes (income, sales, property, etc.)
• Travel and leisure

“These expenses could vary dramatically from one household to another so it is important to consider your own personal situation,” said Urban. “Once you have firmed up an approximate forecast of expenses for at least the first several years of retirement, then you should be able to back into a reasonable amount that you would need to have saved.”

Urban added that you should also factor in any sources of guaranteed income — like pensions or Social Security — since these will impact how much you need to save in your retirement and investment accounts.

There Are Some General Rules of Thumb to Saving

There might not be a magic number to how much you actually need for retirement, but there are a few general rules of thumb you can follow.

“I advise my clients to save a minimum of 10 to 20 times their desired retirement income minus expected annual Social Security benefits,” said Samuel Shinn, a wealth advisor at BMC Wealth Management .

Say you want to live on $100,000 a year in retirement. Following this rule, you should have at least $1 million to $2 million in savings before retiring. Again, this doesn’t account for other guaranteed income sources that come your way later.

Keep in mind that the exact amount you’ll need to retire comfortably depends on quite a few factors, such as how you’ve invested your income, your expected longevity, your expected retirement age and your desired lifestyle in retirement. You might need a much larger amount if you want to retire rich.

If you haven’t retired yet, now’s a good time to assess your saving and investment strategies.

“Pre-retirees should consider investing at minimum 10%-15% of their income toward retirement,” said Shinn. “They should consider notching up contributions in their workplace retirement plan by 1%-2% annually as they receive annual raises. Following this strategy over a few decades has resulted in success for many retirees.”

This article originally appeared on GOBankingRates.com : How Much Do You Need To Retire Rich? Here’s What Most Americans Say