How can I afford to retire?

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Retirement can be expensive. That’s why you’re saving! In this article, we’ll show you the moves you can make to keep your savings on track and retire comfortably.

You can live on less

Most retirees need 75% to 85% of what they had been earning.

Living costs decline for two big reasons:

You’re no longer saving for retirement.
You’re no longer paying payroll taxes.

See what you might need

Try Vanguard’s Retirement Income Calculator. You can see how much money you may need and how much you may have. Not on track yet? We have a few suggestions to help you get closer to the retirement you want.

Note: The source of the 75%-to-85% retirement rule of thumb is the Replacement Ratio Study, Aon Consulting and Georgia State University.

Save a little more to close the gap

Vanguard recommends that you save 12% to 15% of your pay each year for retirement. This includes any employer contributions.

Small steps can pay off big

Increase your contribution rate by a small amount at first. Even an increase of one percentage point will help.
Boost your contribution rate by a little each year.

Your plan may offer an annual savings increase feature. If you use it, Vanguard will increase your contribution rate for you automatically once a year.

Consider working a little longer

More and more Americans are planning to work longer. You may benefit from doing so.

Save longer, spend later

Working longer gives you more time to boost your retirement savings. It also can delay when you need to start tapping into them.

Stay active and engaged

Many people say that continuing to work helps keep them active, engaged, and socially connected.

Get paid for your passion

Even if you don’t want to stay in your current job, you might find a different one—one that pays you to do what you love most.

Waiting will increase your Social Security benefit

Monthly payment in retirement

Age 62	$750
Age 66	$1,000
Age 70	$1,320

Source: Social Security Administration. Based on a hypothetical worker’s "full retirement" benefit of $1,000 at age 66.

Tempted to start your benefit at the earliest age of 62? The longer you wait, the more you’ll get each month.

Get an estimate

You can get an estimate of your benefit based on your age at the Social Security website.*

*When you visit this site, you will be leaving our site. Vanguard is not responsible for the accuracy of information on third-party sites. Vanguard receives no remuneration for website links.