Retirement Math for Moms
How Much Will You Actually Need to Quit Working One Day?
If you’ve ever tried to calculate how many snacks to pack for a family road trip, you’re already doing the kind of math that will come in handy for retirement planning. Figuring out how much money you’ll need when you finally get to retire isn’t as scary as it sounds. So let’s break it down mom-style, with coffee in hand and a clear plan in mind.
Why Does This Matter?
Because “I’ll figure it out later” isn’t a retirement strategy. You need a general sense of how much you’re aiming for—whether your dream retirement looks like beachfront yoga or just not setting alarms ever again.
The good news? You don’t need to be a financial planner to estimate your retirement number. You just need to understand the basics of how much you’ll spend, how long retirement might last, and how much your savings will need to cover.
Step 1: Estimate Your Annual Spending in Retirement
Start by asking: How much will I actually spend each year once I stop working?
Pro tip: You likely won’t need 100% of your current income because certain expenses (commuting, daycare, maybe even your mortgage) could disappear.
A common rule of thumb is to aim for 70% to 80% of your pre-retirement income.
So, if you currently make $80,000 a year:
70% of that is $56,000
80% of that is $64,000
That’s your estimated annual spending in retirement. (Adjust up or down depending on your lifestyle goals. If you want to travel a lot or live somewhere pricey, aim higher.)
Step 2: Use the 25x Rule
Take your estimated annual spending and multiply it by 25. Why? Because it’s based on the 4% rule—a popular guideline that says you can safely withdraw 4% of your portfolio each year without running out of money over a 25-year retirement.
Let’s do the math with that $60,000 estimate:
$60,000 x 25 = $1.5 million
That’s your target retirement savings number. It’s okay if you’re not there yet—this is about setting a goal, not feeling guilt.
Step 3: Adjust for Inflation
Prices go up over time (we see you, $7 lattes). So if you’re 35 and plan to retire at 65, the $60,000 you’d need today might look more like $110,000 a year in the future.
The solution? Make sure your investments are growing faster than inflation—which is one reason why investing is so important.
Step 4: Factor in Other Income
Your retirement savings won’t have to carry the entire load. Ask yourself:
Will I get Social Security? (Most of us will—just don’t count on it being enough by itself.)
Will I have a pension or rental income?
Will my partner have retirement income too?
Let’s say you estimate $25,000 a year from Social Security, and you need $60,000 annually. That means your investments only need to cover the $35,000 gap—and suddenly your total savings goal gets smaller.
$35,000 x 25 = $875,000
Still a big number, but more manageable than $1.5 million, right?
Step 5: Check Your Progress
To keep things simple, here are some rough, age-based benchmarks often recommended by financial planners:
By age 30: Have 1x your annual income saved
By age 40: Aim for 3x your income
By age 50: Target 6x your income
By age 60: Try to hit 8x to 10x your income
Don’t panic if you’re behind—just focus on consistent investing going forward. Compound interest is the closest thing we’ve got to financial magic.
Mom Brain Recap
Estimate spending in retirement: Aim for 70–80% of your current income
Use the 25x rule to get your total savings goal (Annual Spending x 25)
Inflation exists—invest in assets that grow over time
Social Security and other income help reduce what you need to save
Start where you are, and aim to increase your savings over time
Remember: Retirement planning is about being intentional. One smart move at a time, you’re building a future where your biggest decision will be which book to read on the beach.
Still looking for help to calculate how much you will need to save for retirement? The free SheWealth Retirement Calculator Worksheet in the Resource Garden makes it easy to run the numbers.