Most people think retirement is just about reaching a certain age. In reality, retirement is about reaching a number.

That number depends on your lifestyle, monthly expenses, and how long you expect to live after retirement.

A common rule is the 25x rule. Multiply your yearly expenses by 25.

For example:

• If you need $40,000 per year in retirement
• You may need around $1,000,000 invested

This comes from the 4% rule, which suggests you can withdraw 4% of your investments each year without running out of money too quickly.

You should also consider:

• Inflation
• Medical expenses
• Travel goals
• Housing costs
• Whether you want to help children or family

The best way to know your number is:

1. Estimate your yearly retirement expenses
2. Subtract expected pension or social security income
3. Multiply the remaining amount by 25
4. Start investing toward that goal now

Even if your target feels large, remember that starting early gives compound growth more time to work.