You’ve worked hard to build your savings, but how do you know if it’s enough to retire? It’s not just about hitting some magic number. It’s about knowing what that number means for your life, your future, and your peace of mind.
If you’ve ever asked yourself, “How much money do I need to retire?”, you’re not alone. It’s one of the most common questions clients ask when planning for the future.
But the answer isn’t a single figure pulled from a headline or online formula. The real answer depends on you — your lifestyle, your goals, your health, and even your location.
Here in Columbus, Georgia, retirement may look different than it does in larger cities or higher-cost states. Lower housing costs, favorable state tax policies, and a strong sense of community can make retirement more accessible, but that doesn’t mean planning is any less important.
Whether you’re nearing the Social Security retirement age or still mapping out your long-term plan, understanding your own needs and opportunities is the first step toward a confident retirement. In this article, we’ll help you think through the variables, set realistic expectations, and share our resources to help you get personalized answers about your retirement readiness.
Key Takeaways
- There’s no universal retirement savings magic number. How much money you need to retire depends on your lifestyle, goals, and where you live.
- Your retirement age, Social Security strategy, and local cost of living (like in Columbus, Georgia) can all impact how long retirement savings will last.
- The new rules for retirement savings in 2025 could affect catch-up contributions, inherited IRAs, and how workplace retirement plans operate, making it even more important to plan ahead.
What Influences How Much You’ll Need to Retire?
When it comes to retirement, the amount you’ll need isn’t just dependent on what your portfolio looks like; it’s also about the kind of life you want to live. And that number can vary widely depending on your circumstances, goals, and even where you plan to spend your retirement years.
Here are some of the biggest factors that influence your retirement number:
Lifestyle Goals
Do you plan to travel? Spend more time with family? Take up a hobby or volunteer? Whether your dream retirement is full of relaxation or adventure, your expected lifestyle will impact how much you need to have set aside.
Healthcare and Long-Term Care Costs
Even with Medicare, healthcare expenses are one of the biggest unknowns in retirement planning. It’s important to factor in premiums, out-of-pocket costs, and the possibility of needing long-term care when planning your retirement.
Inflation and Longevity
Living longer is a blessing, but it also means your savings need to last longer. This, coupled with inflation gradually increasing the cost of everyday items, means your plan should account for rising expenses over time.
Taxes in Retirement
Georgia is considered a tax-friendly state for retirees. For example, Social Security benefits are not taxed by the state, and Georgia offers retirement income exclusions for those age 62 and older.
This can help you stretch your retirement income further, especially if you’re retiring in Columbus, GA, where the overall cost of living is below the national average.
Local Cost of Living
Housing, utilities, groceries, and healthcare costs tend to be more affordable in Columbus compared to larger metro areas. This makes it a potentially ideal location for retirees looking to make their money go further.
Bottom line? A realistic retirement plan should reflect your personal goals and local cost environment, not a national average. That’s why it’s important to evaluate where you stand based on what matters to you and the factors that will apply to your retirement.
Retirement in Georgia: How Far Does Your Money Really Go?
When most people think about retirement savings, they want a clear number — something concrete to aim for. And while rules of thumb can be helpful, they don’t tell the full story.
National Retirement Rules vs. Your Reality
When it comes to retirement planning, most people want a concrete target number to work toward. That’s why you’ll often hear general rules like: “You’ll need 70% to 80% of your pre-retirement income to maintain your lifestyle.”
While this can be a useful starting point, it’s not a guarantee, and it certainly doesn’t tell the whole story. In reality, the amount of income you’ll need in retirement depends on several personal factors, like your healthcare costs, debt, lifestyle preferences, and how long you plan to (or need to) work.
Another popular guideline is the “25x rule”, which says you should aim to save 25 times your anticipated annual expenses. So, for example, if you plan to spend $60,000 per year in retirement, you’d aim to save around $1.5 million.
While that number can sound overwhelming, it’s based on broad assumptions. These rules often assume consistent inflation, moderate market returns, and a retirement lasting 25–30 years.
But not everyone fits those assumptions. And, equally importantly, these “rules” don’t account for geographic differences in cost of living — something that can have a major impact on how much you actually need to retire comfortably.
Georgia-Specific Considerations
If you’re planning to retire in Georgia, especially in Columbus, your cost of living may be significantly lower than in other areas of the country.
As mentioned earlier, Social Security benefits aren’t taxed at the state level, and Georgia offers generous retirement income exclusions starting at age 62. These factors can reduce the total amount you need to save.
For example, someone retiring in a high-cost city like San Francisco might need well over $100,000 per year to maintain a moderate lifestyle, while a retiree in Columbus may live comfortably on much less. The exact figure needed to live varies from person to person, but the general cost of living in your area will likely have a major impact.
New Rules for Retirement Savings in 2025
If you’re planning to retire in the next few years, it’s important to stay informed — not just about how much you’ll need, but also about how the rules around retirement savings are evolving.
As part of the SECURE 2.0 Act, several important changes are set to take effect in 2025 that could impact how you save, contribute, and plan.
Here are a few highlights:
Higher Catch-Up Contributions for Ages 60–63
Starting in 2025, individuals ages 60 to 63 can contribute more to their 401(k) plans, up to the greater of $10,000 or 150% of the standard catch-up amount (indexed for inflation). This gives late-stage savers more flexibility to boost their retirement funds.
Automatic Enrollment in New Workplace Plans
New 401(k) and 403(b) plans must automatically enroll eligible employees at contribution rates between 3% and 10%, increasing annually. While this won’t affect current retirees, it’s a major shift if you’re planning ahead for retirement.
Updated Rules for Inherited IRAs
For those who inherited an IRA from someone who passed away in 2020 or later, new rules require annual withdrawals over a 10-year period (depending on the original account holder’s age). This affects how inherited accounts are taxed and distributed.
While these changes don’t directly affect how much you need to retire, they could influence how (and how much) you’re able to save or withdraw. A trusted financial advisor can help you navigate what these new rules mean for your personal plan.
It’s About Income, Not Just Savings
Rather than focusing solely on your total retirement savings, it’s often more helpful to think in terms of monthly income needs. That includes Social Security benefits, pension income (if applicable), and withdrawals from retirement accounts.
And that brings us to one of the most common questions we hear from our clients…
What Does $1 Million Really Get You in Retirement?
For years, the $1 million mark has been treated like the golden ticket to retirement. It’s a nice, round number — and it certainly sounds like a lot of money.
But the real question is: what does $1 million actually buy you in retirement?
The 4% Rule as a Starting Point
One commonly used rule of thumb is the 4% rule, which suggests that you can safely withdraw 4% of your retirement savings each year without running out of money over a 30-year retirement. That means:
If you retire with $1 million, a 4% withdrawal would give you $40,000 per year in income before taxes.
Of course, that’s just a starting point. Some retirees may need more, especially if they have higher healthcare expenses, plan to travel, or retire earlier than age 65. Others may need less if they live modestly, have other income sources (like Social Security or a pension), or retire in a more affordable location.
What That Looks Like in Columbus, Georgia
If you’re retiring in Columbus, GA, your $1 million may go further than it would in more expensive parts of the country. With housing and healthcare costs lower than national averages, $40,000 a year, supplemented by Social Security benefits, could potentially support a comfortable lifestyle for many retirees.
Still, that number isn’t guaranteed. Market returns, inflation, and personal spending habits can all influence how long retirement savings will last.
That’s why many retirees today are moving away from one-size-fits-all rules like the 4% rule in favor of dynamic withdrawal strategies, which adjust how much you withdraw based on market conditions and evolving life needs.
The Bottom Line
$1 million is a milestone worth celebrating, but it’s not a guarantee. For some, it’s more than enough. For others, it might fall short. What matters most is having a personalized income plan — one that accounts for your goals, your location, and your full financial picture.
If you’re not sure where your current savings stack up, our Retirement Readiness Calculator can give you a quick, personalized estimate based on your age, income, savings, and future goals.
When Should You Retire? (And Why Timing Matters)
Retirement isn’t a date on the calendar, but a decision that will affect what the rest of your life looks like. And while many people associate retirement with age 65, the truth is, there’s no single “right” age to stop working.
The ideal time to retire depends on your health, financial readiness, and lifestyle goals.
Understanding the Retirement Age Spectrum
The Social Security retirement age ranges from 62 to 70, depending on when you choose to start collecting benefits. Here’s how it breaks down:
- 62: The earliest age you can begin collecting Social Security, but with a permanent reduction in your monthly benefit.
- 66–67: Your full retirement age, depending on your birth year, is when you’re eligible for your full monthly benefit.
- 70: The latest age to delay benefits, which could result in a significantly higher monthly payment, up to 32% more than at full retirement age.
Choosing when to retire isn’t just about Social Security, though. You’ll also need to consider:
- Healthcare coverage – Medicare begins at 65, so retiring earlier may require bridging the gap with private insurance.
- Pension or employer benefits – Some plans have specific vesting ages or payout rules.
- Income strategy – Will your retirement savings support your lifestyle if you retire sooner?
It’s Not Just a Financial Decision
Some people feel emotionally or professionally ready to retire in their early 60s. Others thrive in their careers well into their 70s. The best retirement plans take both into account: your numbers and your readiness.
That’s why we recommend starting with a clear snapshot of where you stand and what your income would look like if you chose to retire now versus waiting a few more years. It’s important to work with a trusted financial advisor to create a plan that allows you to retire when you’re ready.
Final Thoughts
If there’s one thing to take away from all of this, it’s that retirement planning is deeply personal.
The “right” number isn’t about hitting a magic milestone — it’s about understanding what you need to support the life you want to live.
Living in a place like Columbus, Georgia, can stretch your retirement dollars further than in more expensive areas, but factors like your health, lifestyle, and timing still play a major role. Whether you plan to retire at 62 or 70, having a plan that aligns with your goals is what makes the difference between uncertainty and confidence.
If you’re not sure whether you’re on track — or just want a clearer picture of where you stand — our Retirement Readiness Calculator is a great place to start. We’ve created this calculator to help you take the guesswork out of your retirement planning.