Are You on Track to Retire in 2030? Start With Finding Your Monthly Income Target.

There truly is no right amount to save for retirement, largely because everyone has different expectations for what their retirement will look like. However, people can get into trouble when they don't make a plan.

Saving for retirement isn't easy, especially in today's world, where the cost of living is high. Without doing anything, people could find themselves ill-prepared.

Setting retirement goals will help workers understand how much they need to save. Are you on track to retire in 2030? Start by finding your monthly income target.

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The cost of continuing your current lifestyle

Many people look forward to retirement because, after decades of clocking in and out of the office, they want a more relaxing schedule that lets them focus on what they care most about in life. That could mean spending time with family and grandchildren, traveling, or focusing on hobbies they haven't had time for in the past.

I think it's safe to say that most people, at the very least, want to maintain the quality of their current lifestyles, and most want it to improve. Most retirement experts will tell you that you'll need about 75% to 80% of your current income to maintain your current lifestyle. If you make $100,000 per year, for example, that means you'll need $75,000 to $80,000.

If you divide that number by 12, the amount you'll need is anywhere from $6,250 per month to $6,666 per month. Remember, this is for core expenses such as food, transportation, housing, and so on. It doesn't necessarily include plans for travel or a vacation home.

This is a good baseline to start with. Then, consider your specific situation when you reach retirement.

For instance, if you purchased a home 20 to 30 years ago, most or all of your mortgage might be paid down, allowing you to eliminate the mortgage expense. If you're no longer going into work, your transportation expenses might also come down. However, retirees might incur additional expenses, such as higher healthcare costs, as they often face higher medical bills.

Start with the baseline; then do your best to add and subtract costs based on what your lifestyle could look like in retirement.

Where's your income coming from?

This is another important retirement consideration. Obviously, your salary will stop when you retire, but you may receive a pension. Then there's Social Security, the program you paid into throughout your career through payroll taxes. As of January 2026, the average monthly Social Security check for retirees was $2,071, or $24,852 per year.

Then there are the savings that retirees have ideally built up over their careers. There's one rule that many experts refer to, called the 4% rule, which essentially says that retirees should aim to withdraw 4% of their savings per year if they plan for a 30-year retirement. So I'll assume you'll need $75,000 per year to maintain your current lifestyle in retirement.

I'll also assume you'll get the average Social Security check of nearly $25,000 per year. That means you'll now only need $50,000 per year from savings and a total savings of $1.25 million ($1.25 million divided by 4% equals $50,000) to maintain your current lifestyle over a 30-year retirement. That's quite a lot and much more than the average or median amount that Americans aged 65 have saved, according to Vanguard.

However, most people don't live to 95, as the average life expectancy in the U.S. for all people is 79, so assuming a 30-year retirement may be aggressive. You may also have other sources of income, and your savings may be invested, so your investments can continue to grow, even with a more conservative investment approach.

Ultimately, $1.25 million may be more than what you'll actually need. However, there's no way around the fact that most Americans will need to build significant savings to retire and maintain their current lifestyles.

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