How do I estimate how much I need to save?
For the 4% rule to work, many people use the 25x rule to estimate how much they need to save. To do so, calculate your anticipated annual expenses in retirement, then multiple the total by 25. That provides a target savings amount.
The idea is to save the target amount before you retire, then use the 4% rule to guide your withdrawals after. Keep in mind that this strategy doesn’t account for additional retirement income or expenses you may have.