Questions about Retirement
6 direct-answer and decision-guide pages, each backed by primary sources (IRS, SSA, CFPB, FDIC, Federal Reserve) and reviewed by our editorial team.
Direct answers
50–80 word answers up top, then the math, sources, and follow-up FAQs.
How much do you need to retire at 55?
To retire at 55, most U.S. households need a portfolio of roughly 28–33× their planned annual spending, meaningfully more than the classic 25× rule because the money has to last 35–40 years and bridge to age 59½ (penalty-free 401(k)/IRA access) and 65 (Medicare). For a $60,000-a-year lifestyle, that's roughly $1.7M to $2.0M, plus a separate plan for ACA health insurance and either a Rule-of-55 401(k) or a 72(t) SEPP to avoid the 10% early-withdrawal penalty.
Read the answerHow much should I have saved for retirement by age 30, 40, 50?
Fidelity's well-known benchmarks: 1× salary saved by 30, 3× by 40, 6× by 50, 8× by 60, and 10× by 67. T. Rowe Price uses slightly higher figures. These assume retiring at 67, saving 15% from age 25, and a 50/50 stock-bond glide path. Behind? Increase your savings rate by 1 percentage point per year and consider working 2–3 years longer.
Read the answerWhen can I start collecting Social Security?
You can start Social Security retirement benefits as early as age 62, but you'll receive about 30% less than your full benefit. Full retirement age (FRA) is 67 for anyone born in 1960 or later. Delaying past FRA earns 8% per year in delayed-retirement credits up to age 70, the maximum benefit. The break-even between 62 and 67 is roughly age 78.
Read the answerWhat is the 401(k) contribution limit in 2026?
For 2026, the IRS limit on employee 401(k) deferrals is $23,500. Catch-up contributions for workers age 50+ are an additional $7,500, raising the personal cap to $31,000. The new SECURE 2.0 'super catch-up' for ages 60–63 is $11,250 instead of $7,500. The combined employee + employer cap is $70,000 (or $77,500 with age-50 catch-up).
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Should I…? decision guides
Binary trade-offs with the conditions that flip the answer for your situation.
Roth vs Traditional 401(k): Which Should I Choose?
Choose Roth if you expect your tax bracket in retirement to be HIGHER than today (early career, low-income year, or strong income growth ahead). Choose Traditional if you expect it to be LOWER (peak-earning years, planning to retire in a lower-tax state). When uncertain, split 50/50, the tax diversification has measurable value in retirement.
Compare optionsRetire at 62 or 67: Which Makes More Sense?
Retire at 67 if longevity, portfolio survival, and lifetime Social Security maximisation matter most, the 30% larger SS check and 5 fewer years of withdrawals are the biggest single variables in retirement math. Retire at 62 only if you have ≥30× annual spending saved, decent health insurance arranged, and a strong personal reason (caregiving, health, burnout) not to wait.
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