Most U.S. adults are convinced the only way to retire comfortably is to be a millionaire.

As of 2025, the so-called “magic number” for the average worker was $1.28 million, according to the Schroders 2025 U.S. Retirement Survey (1). However, the size of the nest egg is only part of the equation. After all, the definition of a comfortable and stress-free retirement is that all your monthly living expenses are met with reliable and passive income.

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Put simply, monthly income — rather than portfolio size — is the key factor for retirement planning. With that in mind, here’s how much money you would need to save to enable a comfortable retirement at three different levels of monthly spending.

If you’re comfortable spending $3,000 a month in retirement, you’re probably seeing lower-than-average costs of living. Perhaps you’ve moved in with family or plan to spend your retirement in a state where taxes and shelter costs are reasonably low. You might also be living alone and downsizing, which can dramatically reduce the monthly bills.

Regardless of the reason, if your target is $3,000 a month, the good news is that you can get pretty close with just Social Security benefits. As of January 2026, the average monthly benefit check for a retired individual is $2,071 (2). For a married couple filing jointly and both receiving benefits, the average monthly payout after cost-of-living adjustments is $3,208 (3).

In other words, you can potentially meet, or come close to, this $3,000 per month spending target in benefits alone.

If you’re single and need to cover the $1,000 gap independently, you may need a nest egg of at least $300,000, based on the standard 4% rule. This would give you $12,000 annually — or $1,000 per month which, combined with approximately $2,071 from Social Security, should be enough to meet the $3,000 monthly spending target in retirement.

Ultimately, if your annual expenses are $36,000, a comfortable retirement is achievable.

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The bar is raised if your monthly spending is a little closer to $5,000 per month.

The average household between the ages of 65 and 74 spends roughly $65,149 a year, according to Fidelity’s analysis of Bureau of Labor Department data (4). That’s about $5,429 spent per month.

Again, Social Security should cover a decent chunk of this monthly spending target. If the average monthly benefit check is $2,071, that means your retirement savings needs to provide you with roughly $2,929 per month in order to hit the $5,000 monthly spending target. For a married couple filing jointly, $3,208 in monthly benefits would require $1,792 from retirement savings to cover the gap and meet the $5,000 target.

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With these calculations, a single Social Security recipient would need to draw $35,148 annually ($2,929 per month multiplied by 12) from their retirement savings to hit the $5,000 monthly spending target. Based on the 4% rule, you’d need a nest egg of roughly $880,000 to provide you with $35,200 annually.

If you’re married and filing jointly with your spouse, the two of you would need roughly $21,504 annually ($1,792 per month multiplied by 12) from retirement savings to cover the gap. That means, using the 4% rule, the two of you would need a nest egg of roughly $540,000 to give you $21,600 annually.

Both targets are meaningfully below the $1.28 million magic number, which makes the $5,000 monthly spending target a little more accessible.

For most people, a six-figure annual budget is a luxury in retirement. If you’re determined to make your golden years as golden as possible, aiming to spend $10,000 a month requires a nest egg that’s well above the $1.28 million magic number.

Based on the calculations above, you’d need $7,929 per month from retirement savings — which, coupled with $2,071 from Social Security, makes $10,000 per month. That means you’d require $95,148 annually from your retirement savings and, using the 4% rule, that would require a nest egg of roughly $2.4 million to give you $96,000 annually.

For a married couple, $3,208 in monthly benefits leaves a gap of roughly $6,792 that retirement savings will have to cover in order to hit the $10,000 target. That means said married couple would need $81,504 annually from retirement savings and, using the 4% rule, that would require a nest egg of roughly $2,050,000.

At this level, you may have more tax concerns than the average retiree. A sizable portion of your Social Security benefits may be taxable, while a large balance in your 401(k) or IRA could leave you vulnerable to Required Minimum Distributions (RMDs) later in retirement.

Simply put, if your target is this high and you have a shot at achieving it, don’t forget to hire expert accountants and tax lawyers to help you navigate the system efficiently. Many retirees don’t reach this level of wealth, but for those who do, minimizing taxes and preserving wealth could be more important than managing budgets and cutting costs of living.

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Schroders (1); Social Security Administration (2, 3); Fidelity (4).

This article provides information only and should not be construed as advice. It is provided without warranty of any kind.