If you’ve ever asked yourself, “How much do I actually need to retire?” — you’re not alone.
It’s one of the most common questions we hear at SD Capital, and it makes sense. Retirement is one of life’s biggest transitions, and the stakes are high — you’re stepping away from a regular paycheck and into full financial independence.
But here’s the honest truth: There’s no one-size-fits-all number.
What is possible? Finding the number that’s right for you. Here’s how we help our clients think about it — without stress, guesswork, or generic advice.
1. Replace Your Paycheck
A good rule of thumb? Plan on needing 70–80% of your current income in retirement.
That percentage gives you a solid baseline for covering everyday living expenses like housing, food, transportation, and basic health care — without cutting back on your current lifestyle.
But retirement isn’t just about scraping by. It’s about living a life you enjoy — whatever that means for you.
Maybe you dream of traveling more. Or finally getting to those hobbies you’ve put on the back burner. Or maybe it’s just having peace of mind that your bills are covered, your kids are set, and you’re free to breathe.
The goal of a smart retirement plan isn’t just to hit a savings target — it’s to replace your paycheck in a way that lets you keep living life on your terms.
2. The 25x Formula
Want a fast way to estimate your retirement “nest egg”? Try the 25x formula.
It works like this:
- Take your expected annual retirement expenses
- Multiply that number by 25
Let’s say you plan to spend $100,000 a year. $100,000 × 25 = $2.5 million
That’s a rough estimate of how much you’d need invested to sustainably generate that income in retirement (assuming a safe 4% withdrawal rate).
Is it a perfect formula? No. But it’s a simple and effective way to start thinking long-term.
And here’s the bigger point: Your number isn’t just math.
It’s about freedom. Flexibility. The ability to live the life you’ve worked so hard to build — without worrying whether the market, inflation, or unexpected expenses will throw you off track.
3. No One-Size-Fits-All
This is the most important part — and where a personalized plan really matters. Your retirement number isn’t the same as your neighbor’s. Or your co-worker’s. Or your friend’s.
Why? Because your plan has to account for:
- Your health (and healthcare needs)
- Your tax situation
- Your lifestyle goals
- Your legacy plans
- How long you’ll need your money to last
That’s why we don’t believe in cookie-cutter retirement strategies. At SD Capital, we build plans around what you care about — family, security, travel, giving back, or whatever “comfortable” means to you.
Your plan should reflect your priorities, not someone else’s spreadsheet.
Ready to Find Your Number?
Retirement planning doesn’t have to be overwhelming — not when you have the right guide.
At SD Capital, we help you:
- Clarify what retirement looks like for you
- Understand how much you’ll actually need
- Build a step-by-step plan to get there
So whether you’re five years away or already retired, we’ll meet you where you are — and walk alongside you every step of the way.
The opinions expressed in this material are for general informational purposes only and are not intended to provide specific advice or recommendations for any individual. All performance referenced is historical and is not a guarantee of future results. All indices are unmanaged and cannot be invested in directly.
Investing involves risk, including the potential loss of principal. No investment strategy can guarantee success or protect against loss in all market conditions.
This material is not intended to be a substitute for individualized financial, tax, or legal advice. Please consult your financial advisor, tax professional, or legal counsel regarding your specific situation.
Brent Shimman is the co-founder of SD Capital with over 20 years of experience helping clients align their finances with what matters most. He lives in Oregon, Ohio with his wife and five children.
