Your Retirement Number

Retirement is a Number, Not an Age

Traditional thinking says you retire at 65 (or whatever age your country dictates). But retirement isn’t really about age - it’s about having enough money that work becomes optional.

The 25x Rule

A widely-used guideline for financial independence is the 25x rule:

You can retire when your investments equal 25 times your annual expenses.

For example:

• If you spend $40,000/year → You need $1,000,000
• If you spend $60,000/year → You need $1,500,000
• If you spend $100,000/year → You need $2,500,000

Why 25x?

The 25x rule is based on the 4% safe withdrawal rate - research suggesting you can withdraw 4% of your portfolio annually with low risk of running out of money over a 30-year retirement.

25 x annual expenses = portfolio that supports 4% withdrawal

If you have $1,000,000 and withdraw 4% ($40,000), you can sustain that withdrawal rate indefinitely in most historical market conditions.

What Plan in Decades Shows You

When you create a scenario, we calculate:

1. Your current position - How close you are to 25x
2. Your trajectory - When you’ll reach 25x at current savings rates
3. What-if analysis - How changes affect your timeline

This helps answer the real question: “When can I stop working if I want to?”

Important Caveats

The 25x rule is a guideline, not a guarantee:

• It assumes a diversified portfolio
• It doesn’t account for pension income (which reduces the amount you need)
• Healthcare costs vary dramatically by country
• Your expenses may change in retirement
• Sequence of returns risk matters in early retirement

Use it as a planning tool and benchmark, not as the final word on your retirement readiness. And always consult a financial advisor for personalized advice.