How much do you need to save to have $1 million by 65 if you start at 45?
Short answer
Starting at 45 with nothing saved, you'd need to invest about $1,920 a month to reach $1 million by 65, assuming a 7% yearly return. You'd put in $460,718; growth does the rest. At 5% a year it takes $2,433 a month.
The math
Every 5 years you wait costs more
Each 5 years of delay raises the monthly amount sharply, as the first table shows. Starting 5 years earlier at 40 would take $1,234 a month instead.
- Years to 6520
- Needed each month at 7%$1,919.66
- You put in$460,718.40
- Growth+$539,281.60
- Balance at 65=$1,000,000
The numbers
$1 million at 65: monthly amount by starting age (7% a year)
| Years to save | Needed each month | You put in | Growth does |
|---|---|---|---|
| 45 | $264 | $142,382 | $857,618 |
| 40 | $381 | $182,870 | $817,130 |
| 35 | $555 | $233,197 | $766,803 |
| 30 | $820 | $295,088 | $704,912 |
| 25 | $1,234 | $370,338 | $629,662 |
| 20 | $1,920 | $460,718 | $539,282 |
Starting at 45: monthly amount by return
| Assumed return | Needed each month |
|---|---|
| 4% | $2,726 |
| 5% | $2,433 |
| 6% | $2,164 |
| 7% | $1,920 |
| 8% | $1,698 |
Assumes monthly deposits at the end of each month and a steady return before inflation, fees and taxes. Real returns vary and can be negative.
Count your employer match
If your employer matches 401(k) contributions, the match counts toward the monthly amount. A 50% match on 6% of pay is free money that lowers what you need from your own paycheck.
What $1 million buys
Using the 4% rule of thumb, $1 million supports about $40,000 a year of withdrawals in the first year of retirement, before taxes. Inflation means $1 million in 20 years will buy less than it does today.
Try your own numbers
Questions people ask
Is it too late to save for retirement at 45?
No. Starting later means saving more each month or working a little longer, but every dollar invested still has years to grow. Catch-up contributions are allowed from age 50.
Is 7% a realistic return?
It is a common planning assumption for a stock-heavy portfolio over decades, before inflation. Returns vary year to year and can be negative, so check your plan at 5% too.
What account should I use?
A 401(k) up to the employer match first, then a Roth or traditional IRA, then more in the 401(k). These accounts shelter growth from tax.
Learn the idea
Other amounts
Sources
General education, not personalized financial, tax or legal advice. Figures are examples. Check current rates and limits before you act.
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