The idea of retiring early with $1 million by age 35 is appealing. But, whether that is enough depends on how long you will need it to stretch your nest egg and how you plan to live. If you withdraw around 3% to 4% annually, that gives you between $30,000 and $40,000 each year. This can be enough for a modest lifestyle, but tight if your expenses are higher. Where you live, your health costs and how you invest will all affect how far that money goes. A financial advisor can help you determine how much money you will need for retirement and recommend different strategies to reach that goal.

If you want to figure out how much you’ll need to save for retirement, begin by outlining what kind of life you expect to have once you stop working. Think about your housing situation, daily activities and any major plans, such as travel or relocating. The cost of your future lifestyle, whether modest or more expensive, will guide how much money you should set aside to cover your retirement goals.

After defining your goals, break down the costs you may face each month in retirement. While some regular expenses like work transportation or business attire may disappear, others like medical bills or long-term care often increase with age. You might also want to plan for entertainment, home maintenance, or helping children or grandchildren. A common rule of thumb suggests that you will need between 70% and 80% of your pre-retirement income to maintain your standard of living. But this estimate varies based on individual circumstances and retirement plans.

The time you have before retirement also plays a big role. Saving earlier gives your investments more time to grow, which may reduce the amount you need to set aside each year. If retirement is many years away, compound growth can do more of the work. But if you plan to retire soon—or live many years in retirement—you’ll likely need a higher total to cover expenses over time. Reviewing your savings regularly can help you stay on track.

Knowing where your retirement income will come from will help you figure out how much more you will need to save on your own. Your savings and investments will need to fill the gap between what you’ll receive from sources like Social Security or a pension and what you plan to spend.

You should also keep in mind that prices will rise over time because of inflation. This means the money you save today may buy less in the future. So accounting for inflation in your retirement savings plan can help you keep up with the cost of living in future years.

Finally, your retirement plan should change as your life changes. Job changes, family needs, or market ups and downs can affect how much you need or how you invest. Check your plan every year or after big life events to make sure it still fits your goals.