How Much Do You Need to Retire at 35 Years Old?

Retiring at 35 is a bold financial goal and one that requires a high level of planning, aggressive saving and a lifestyle that aligns with early financial independence. Whether you are drawn to the principles of the FIRE (Financial Independence, Retire Early) movement or simply want more freedom in life, figuring out how much you need to retire at 35 hinges on several variables. These include your annual expenses, investment strategy and how long you expect your money to last. Retiring this early could mean funding 50-plus years of living expenses without relying on traditional retirement accounts. Therefore, it takes much more than just cutting back on lattes or saving a few thousand dollars a year. If you are considering retiring early, this is how much you need to retire at 35.

A financial advisor can help you determine how much you need to retire at 35 based on your goals.

Retirement at 35: How Much Do You Need?

According to the Centers for Disease Control and Prevention (CDC), the average life expectancy is roughly 77.5 years. Aiming to retire at 35 means you could need enough money to fund 40 years of retirement — or even more. That is significantly longer than the traditional 20- to 30-year retirement people most often plan.

The 25x rule stands as the general rule of thumb for retirement planning and recommends saving 25 times your expected annual expenses. So, if you plan to live on $40,000 a year, you would need at least $1 million saved by age 35. However, many early retirees aim for 30x or more to add a margin of safety.

The math gets even more challenging when you consider that Social Security, Medicare and penalty-free withdrawals from retirement accounts are still decades away. That is why building a cushion for market volatility, health emergencies and lifestyle inflation will be key.

Factors to Consider to Determine the Amount You Need To Retire

Some factors will influence your retirement planning and budgeting, including whether retiring at 35 is feasible, depending on your financial situation. Here are ones you may want to pay attention to:

Life expectancy: Retiring at 35 means you could need your money to last 40 years or more. This creates a greater risk of outliving your savings. Planning for a longer retirement requires a more conservative withdrawal rate and a larger nest egg than someone retiring in their 60s.
Desired lifestyle and budget: How much you spend each year will heavily influence how much you need to retire early. A minimalist lifestyle in a low-cost area will likely require less than a luxury lifestyle in an urban center. Creating a detailed retirement budget is essential.
Healthcare costs: Without employer-sponsored insurance or Medicare (which kicks in at 65), you will need to fund your own healthcare for decades. According to Forbes, the average cost of health insurance is $7,000 annually for an Affordable Care Act (ACA) marketplace plan. This means a 35-year-old retiring today may need to budget hundreds of thousands of dollars just for premiums and out-of-pocket medical expenses.
Investment strategy: With such a long retirement horizon, your investment portfolio needs to support long-term growth while managing risk. Early retirees typically keep a significant portion in equities but also maintain access to liquid funds to weather short-term market downturns. This means asset allocation and tax-efficient withdrawals are key.
Inflation: Over a 50-year retirement, even modest inflation can significantly erode your purchasing power. Assuming a 2–3% annual inflation rate, you will need your investments to not only support your lifestyle today but also to grow enough to cover rising costs in the future.
Social Security: While you may be eligible for Social Security later in life, retiring at 35 means you might not work long enough to qualify for the full benefit, or much benefit at all. That is why it is wise not to rely on Social Security in your early retirement projections. Instead, treat it as a potential bonus later on.

Ultimately, the amount you need to save to live off for the long haul is a very individualized situation that can vary widely between individuals. It’s important to consult with an expert to help you with your unique situation.

Retirement Benchmarks: How Do You Measure Up?

How Much Do You Need to Retire at 35 Years Old?

Traditional retirement planning benchmarks may not apply to someone retiring at 35. However, they can still provide a helpful perspective. Fidelity, for example, suggests you should have saved at least 1x your salary by age 30 and 3x by age 40 for a traditional retirement. These milestones are far below what is needed for an early retirement. However, they can still provide a helpful perspective. There are a few things to keep in mind:

If you are targeting retirement at 35, your savings rate will likely need to exceed 50% of your income (and often closer to 70%) during your working years.
People following the FIRE movement often aim to save 25 to 35 times their annual expenses to achieve financial independence.
Tools like the 4% rule (which assumes a safe withdrawal rate of 4% annually) can be helpful, but early retirees often reduce this to 3.5% or even 3% to account for a longer retirement period and market uncertainty.

Tracking your net worth, expenses and passive income streams can help you benchmark your progress and correct course as needed. Working with a financial advisor can offer further clarity, especially when customizing benchmarks for your unique timeline and goals.

Strategies to Build a Retirement Nest Egg

Saving enough to retire at 35 is no small feat. It requires strategic planning, disciplined budgeting and an aggressive approach to building wealth in your 20s and early 30s. If you are aiming to reach financial independence early — or even if you are planning to retire on a more traditional timeline — these habits and strategies can help significantly boost your progress.

Maximize income early: Increasing your income through career advancement, side hustles or entrepreneurship can dramatically accelerate your savings. The more you earn, the more you can save and invest, especially if your expenses remain low.
Save aggressively: To retire at 35, you may need to save as much as 50–70% of your income. This often involves living well below your means, avoiding lifestyle creep and redirecting every spare dollar toward investments.
Invest for growth: Building wealth in a short timeframe means prioritizing long-term investments with growth potential. Common choices include index funds, ETFs and diversified equity portfolios. Compound returns over time can also significantly increase the value of your portfolio.
Use tax-advantaged and taxable accounts: Since traditional retirement accounts carry early withdrawal penalties, you will need a mix of accounts. This can include Roth IRAs, taxable brokerage accounts and health savings accounts (HSAs) that, when used strategically, provide flexibility. A financial advisor can help with a tax-efficient withdrawal strategy that spans decades.
Monitor and adjust regularly: Early retirement requires constant monitoring of expenses, returns and market conditions. Periodic reviews of your portfolio and goals help you adapt and make necessary adjustments to stay on track.
Plan for income beyond savings: Many early retirees pursue part-time work, consulting or passion projects that generate income. These flexible income streams can reduce the pressure on your investment portfolio and extend its longevity.

Talk to a financial advisor to help you understand the ways you can save more for the retirement you want.

Bottom Line

If you’re asking how much you need to retire at 35, you’re already thinking differently — and that’s a good start. Achieving financial independence at such a young age is possible, but it isn’t easy. It requires a high savings rate, disciplined investing and the ability to manage risk over a retirement that could span 50 years or more. It’s not just about hitting a number — it’s about building a lifestyle that supports long-term sustainability.

Tips for Retirement Planning

Retirement planning takes expertise and dedicated attention to build and maintain your ability to reach your long-term goals. A financial advisor can help you with both of those things and help you align your long-term financial goals with your savings plan now. Finding a financial advisor doesn’t have to be hard. SmartAsset’s free tool matches you with vetted financial advisors who serve your area, and you can have a free introductory call with your advisor matches to decide which one you feel is right for you. If you’re ready to find an advisor who can help you achieve your financial goals, get started now.
You may want to utilize a retirement calculator to help you estimate the amount of money that you may need to save for the retirement you want.