How much you should save for retirement is a fluid number. The amount most need to save feels insurmountable enough without the added lack of clarity. However, there are some basic foundational rules to follow when planning for retirement.
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Depending on where you’re starting, it can be challenging to know when you have enough in savings. In an effort to get an idea of when you can stop saving, GOBankingRates asked ChatGPT how much is needed to save for retirement before one can stop saving. Here’s what it said.
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Retirement living isn’t a one-size-fits-all approach. You need to customize it to your personal situation. It’s best to start with your spending rather than a nebulous retirement number.
ChatGPT recommended starting with a yearly estimate in today’s dollars. It said there are two areas people underestimate. “Healthcare costs tend to rise with age, and even with Medicare, out-of-pocket costs can surprise people, and lumpy expenses (new car, roof/HVAC, big dental bill, helping adult kids, travel) don’t show up in monthly budgets,” ChatGPT said.
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Your income gap helps you establish a target for your savings goal. ChatGPT relied heavily on the 4% rule for retirement planning. The rule states that you withdraw 4% of your total investments in your first year of retirement and adjust it for inflation in subsequent years, according to Charles Schwab.
Using the 4% rule, multiply your income gap by 25 to get the required number. “If you need $80,000 per year and expect $35,000 from Social Security/pension, your gap is $45,000; at 4%, that’s about $1.125 million,” ChatGPT said.
It said that if you’re using the more conservative 3.5% rule, $1.14 million would be sufficient. Interestingly, both numbers are slightly lower than what many Americans say you need to retire comfortably. That number is $1.26 million, as of 2025, according to Northwestern Mutual.
Hitting a goal number is great, but that doesn’t mean you’re done. You’ll want to stress test your retirement.
The test includes three checks:
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Market drop check: Will your plan work if the market downturns soon after retirement? If not, you may have long-lasting damage.
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Inflation check: Your plan should account for the likelihood of rising prices, especially in healthcare and everyday essentials.
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Surprise expense check: The plan should be able to handle at least one major expense without derailing your plans.