The Question Everyone Asks
"Am I saving enough?" It's the retirement question that keeps people up at night.
The good news: there are benchmarks you can use to check. The bad news: most people are behind.
Let's look at what the numbers actually say.
The Traditional Benchmarks
Financial planners often suggest these savings milestones based on your annual salary:
By age 30: 1x your annual salary saved
By age 40: 3x your annual salary saved
By age 50: 6x your annual salary saved
By age 60: 8x your annual salary saved
At retirement (66): 10-12x your annual salary saved
Example: €50,000 Salary
- Age 30: €50,000
- Age 40: €150,000
- Age 50: €300,000
- Age 60: €400,000
- Age 66: €500,000-€600,000
Why These Benchmarks Are Flawed
Here's the problem: these rules assume you'll spend a percentage of your pre-retirement income in retirement.
But retirement spending is based on expenses, not income.
Someone earning €100,000 who spends €40,000/year needs the same retirement fund as someone earning €50,000 who spends €40,000/year.
A Better Approach: The Expenses Method
Instead of salary multiples, focus on your actual spending:
Your FIRE Number = Annual Expenses × 25
This is based on the 4% safe withdrawal rate from the Trinity Study.
Example
- Monthly expenses: €3,000
- Annual expenses: €36,000
- FIRE Number: €36,000 × 25 = €900,000
Subtract your expected state pension (€15,000/year × 25 = €375,000), and you need:
- €525,000 in private savings
Are You On Track? A Quick Check
Take your current retirement savings and divide by your annual expenses:
- 0-5x expenses: Just getting started
- 5-10x expenses: Building momentum
- 10-15x expenses: Making progress
- 15-20x expenses: Almost there
- 20-25x expenses: FIRE-ready (with state pension)
- 25x+ expenses: Fully financially independent
What If You're Behind?
Most people are behind these benchmarks. Here's what you can do:
1. Increase Your Savings Rate
Every 1% increase in savings rate matters. Going from 10% to 15% of income can shave years off your timeline.
2. Reduce Your Target
If you can live on less, you need less. €2,500/month requires €750,000. €3,500/month requires €1,050,000.
3. Work Longer
Retiring at 67 instead of 65 gives you two more years of contributions and two fewer years of withdrawals.
4. Consider Geographic Arbitrage
Your €36,000/year goes much further in Portugal (€22,000) or Thailand (€18,000).
Curious about retiring abroad? See our guide to the cheapest countries to retire abroad in 2026.
The Real Answer
There's no single "right" amount. It depends on:
- Your lifestyle expectations
- Whether you own your home
- Your health and healthcare needs
- Where you plan to live
- What legacy you want to leave
The best time to start was 20 years ago. The second best time is now.
Want to know your exact number? Take our free 2-minute quiz and see where you stand.