One of the trickiest parts of retirement planning is determining how much you need to save. Your number may vary widely from others your age, depending on factors like the cost of living in your area, your life expectancy, and what type of lifestyle you expect to enjoy in retirement.

For that reason, there’s no one-size-fits-all answer as to how much you should have saved by a particular age.

The median amount baby boomers expect to need to retire comfortably is $600,000, according to a 2024 report from the Transamerica Center for Retirement Studies. However, 21% of those surveyed believe they’ll need $2 million or more, while 24% say they’ll need between $100,000 and $500,000.

In other words, everyone’s needs vary, so it’s impossible to pinpoint an exact number that everyone should aim for. That said, there are still some general guidelines that will apply to most people nearing retirement age. By the time you reach 60 years old, there are a few benchmarks you should be able to meet.

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1. Calculate your retirement number

The best way to know exactly how much you should save is to calculate your retirement number. To do this, you’ll first need to know approximately how much you’ll spend each year once you retire.

A common rule of thumb is that you’ll need around 80% of your pre-retirement income each year after you stop working. So if you’re earning, say, $70,000 per year now, you may need roughly $56,000 per year in savings each year in retirement. From there, you can use the rule of 25, multiplying your annual savings needs by 25 to see your total retirement savings goal — in this case, $1.4 million.

While these guidelines can be helpful to give yourself a ballpark estimate of your savings needs, the ideal approach would be calculating as precisely as you can how your expenses might change. Not everyone will see their costs decrease in retirement. If you’re facing costly health issues or expect to travel extensively, for example, you could spend far more per year than you do now.

Once you have an estimate of how your costs might look in the future, you can run your information through a retirement calculator to get a more accurate idea of what you should be saving. By checking this number a few years before you retire, you can ensure you’re on the right track while you still have some time left to prepare.

2. Know how Social Security will factor into your plans

Social Security will provide an additional source of income for millions of older adults, but it’s important to be realistic about how much you can rely on your benefits.

The average retired worker collects around $1,922 per month in benefits, according to September 2024 data from the Social Security Administration. But you can also check your unique benefit amount by reviewing your Social Security statements online.

Even if you’re not old enough yet to qualify for retirement benefits, these statements will give you an estimate of your future benefit based on your real earnings. By factoring that number into your plans, it will be easier to determine how much you’ll need to save on your own.

3. Be realistic about your retirement age

By the time you reach 60 years old, you should have a good idea of when you want to retire. However, it can be a good idea to have an alternate plan in mind just in case life throws a curveball at you.

Fixty-six percent of baby boomers say they plan to work until at least age 70, according to a 2024 report from the Transamerica Center for Retirement Studies, yet only 34% say they have a backup plan if they’re forced to retire early.

Of course, nobody can predict whether they’ll face unexpected challenges like job loss or health issues. But even if you’d like to continue working late in life, it may be wise to plan on retiring earlier than you expect to add an extra layer of protection to your retirement.

Your retirement plan is highly personal to your situation, and there’s no one-size-fits-all approach to saving. But by preparing carefully based on your unique needs, you can set yourself up for a more financially secure retirement.

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