At Franklin Retirement Solutions, we hear a lot of the same questions over and over. It tends to happen when you’ve been in business as long as we have and you’ve helped as many retirees and soon-to-be-retirees with their planning as we have. We thought it would be a good idea to answer a couple of these questions every week.
Please note this very important fact. Our answers do not take into account your particular investment objectives, financial situation, or risk tolerance and may not be suitable for all investors. Our answers are not financial advice and should not be taken as advice. This material is provided for educational purposes only.
How much money do I need to retire comfortably?
This is the number one question people ask, but it’s never answered the same way. Now, “How much money do I need to retire?” That’s an easy question to answer. You can retire with $0 saved and still technically retire. The trick is that last word: comfortably. How much money do you need to retire comfortably? That’s a much harder question to answer because the answer will change for each person asking. So the most popular question gets the most popular answer: it depends.
Knowing how much money you will need to retire comfortably depends on a number of factors, and is best addressed by a financial advisor who can offer a comprehensive and holistic income plan. It will start by assessing your existing budget and lifestyle, anticipating your future needs as you age, analyzing your goals and dreams in retirement, and forming a clearer picture from that information. And the results will vary by person. Once anticipated expenses are known, the financial advisor will work with you to determine the best way to meet those expenses with existing, and potentially new, retirement income streams. The goal is to help you achieve your retirement wishes in a way that doesn’t have you running out of money before you run out of time.
Plans differ. Goals differ. Finances differ. The best way to determine how much money you need to retire comfortably is to work with a trusted financial advisor to find the solution that works best for you.
When can I realistically retire?
Figuring out when you can retire sounds easy at first. “When I am tired of working.” But it’s a deeper question than it seems and trying to figure out the best time for you can drive a lot of people crazy.
Historically, retirement age was considered to be 65. You worked hard, you retired at 65, your company held a party for you, gave you a gold watch, and sent you home to file for Social Security and Medicare. Nowadays, it’s not as simple as that. People are living longer. For married couples today in 2026, there is a 50% chance that one of them will live to 90. That’s 25 years from 65, and that’s a lot of years to save for. Compare that to 1935 when Social Security was just getting started, the average life expectancy was 59.5 for men and 64 for women. A lot of folks didn’t even make it to “retirement age”.
Now, not only are people living longer, they’re retiring earlier than they want. More than half of workers retired earlier than they planned according to a 2024 study, mostly due to health concerns.
When we talk to our clients about retiring, we always ask three questions. One, have you had enough? Are you ready to give up the 9-to-5? Two, do you have enough? Do you have enough money to fund your retirement in the way you want to spend it? Three, do you have enough to do? Nobody wants to leave the office and just sit in their living room for the next 20-30 years (sometimes even 40 years). Do you have a plan for how you’re going to spend your newly-free time?
Deciding when to retire should be a decision made based on your lifestyle, career aspirations & accomplishments, and financial capabilities. But you should also have a plan for—and if not a plan, at least an awareness of the possibility of—having to retire before you are ready. Whether that’s due to your health, due to obligations regarding the care of a loved one, or due to industry changes.
The biggest concern for folks looking to retire is income outside of personal savings, which for the vast majority of people is going to be Social Security. While it’s possible to file for Social Security at 62, it’s at a steep penalty. Filing at Full Retirement Age (67 for anyone born after 1960, 66 and some months for those born between 1955 and 1959) ensures you receive 100% of your retirement benefits. Filing any year before that subjects you to a penalty… and filing at 62 reduces your benefits down to 70% of what they would be if you filed at 67.
Aside from financial concerns, early retirement can bring about additional challenges due to the age requirements of other needs. Most people have their health care tied to their employer. Early retirement means finding healthcare coverage until you’re eligible for Medicare at 65. Also, if you leave the workplace before turning 59 1/2, you may find that all your money invested in 401(k)s and IRAs is inaccessible without paying a stiff 10% penalty.
These are all important factors to deciding when to retire, or how to retire early, and you should strongly consider talking them over with your trusted financial advisor. If you have questions concerning any of them and/or you do not have a trusted advisor to review them with, feel free to give us a call.