How Much Money Do You Need to Retire?

How much money do you need to retire - The Online Business Now

How Much Money Do You Need to Retire?


It is a daunting question. How much money do you need to retire? It really depends on your age and your current lifestyle. Let’s see how we can calculate the money.


How much money do you make?

I am not asking this question expecting your answer. You must have been yelling “Crazy! I’m not telling you how much money I make”.

If I am asking this question in person, you might slap me in the face for being rude. Yet, in my quest for introducing money making ideas and opportunities, I have been asked several times. Too often, probably.

But, you do have to know how much money that you make. This will help you calculate your need for retirement.


How Much Money Do You Need for Retirement?

A simple way to calculate it How to live in retirement - The Online Business Nowis to have a saving for 25 years of expense. WHAT? Yes, it is that much.


It is because we are living in a better world today. We are living longer. We are healthier. We can reach 80 years old easily.

If you are planning to retire at the age of 60 years old, you will have additional 20-25 years to live for. That is how I come with 25 years of money.


Let’s Use a Retirement Calculator.

I will use a retirement calculator provided by Bloomberg. Click here to use it

Using a calculator will help you see your annual contribution to your investment portfolio.

Let’s assume that we have a person named Jim. Jim is 35 years old. He is making quite alright for his current situation. He is planning to retire at the age of 60 years old.

He thinks at that age he will just play with his grandchildren. He doesn’t want to bother his family with money issues. He also doesn’t want to bother them with future medical fees.

That’s why he thinks he will need $1,500,000 to secure his retirement.

Jim uses the retirement calculator to see how much he needs to contribute to his portfolio annually to have at least $1,500,000.

He has $5,000 in the bank right now. With a conservative 5% Return On Investment, the calculator comes up with a staggering number: $31,073.92 yearly. He has to put that much of money to his investment to have enough money to retire at the age of 60. It means he has to put aside almost $2,600 a month.

He is bewildered. How do you put aside $2,600 a month?


Make Money Work For You

Alright. You must be thinking Make Money Work For You - The Online Business Nowthat Jim is crazy to aim $1,500,000 for his retirement. But how are you going to live your retirement?

Do you want to have the same lifestyle right now or better? Sadly, most retirees are living below their working-time lifestyle. They are thinking that they do not have the income anymore that’s why they have to be economical on their spending. Thus, lower lifestyle.

It is a great thing that Jim has been reading good financial literacy books. He knows that he should increase his income.

Of course, he can’t go to his boss and ask for a gigantic raise. He needs to find another way.

The best advice he got from those books is to make money work for you.


How to Make Money Work for You?

This is the simple tip that I got from MJ DeMarco. If you have money, any amount of money, then you have the mean to increase it. Loan it to others with an interest. That’s the simplest way.

$100 loaned with a 5% interest will give you $5.

Not much, you say? Really?

But do you have a good 5% ROI on your money yet? Why not start small?


Add Some Money Making Ideas and Opportunities

If you are thinking that loaning money is not your cup of tea, then you are not suitable to earn extra money.

Yes. You read that right.

Loaning money is the foundation of getting rich. 


Let me explain this in a manufacturing example.

  • You are making pencils. You think that everyone is using pencil and will benefit from your pencils.
  • You buy all the ingredients. (You loan the money out).
  • You buy the pencil-making machine. (You loan the money out).
  • You deliver the pencil to potential buyers. Transportation fees occur. (You loan the money out).
  • You make sales with profit. (You receive the money with interests).

You see? That is really the basics of wealth building.

All you need is to add some money making ideas and opportunities to your current situation.


Some Money Making Hobbies

I will help you. I will give a Money making hobbies - The Online Business Nowlist of hobbies that make money:

  1. Photography
  2. Baking
  3. Video / Image Editing
  4. Gaming
  5. Coaching
  6. Dog Walking
  7. Writing / Blogging

Photography. Professional photographers are paid $200 – $1,000 per projects. You can photograph real estates, portraits, products, food, and events. If you can cover a wedding, your payment can shoot to $4,000 a wedding. Of course, you have to give a really professional work.

Baking. This is a good opportunity to share your hobby with others. Who wouldn’t love a fresh from the oven bread? I sure do love it. You may start small with a school bazaar, a family gathering, or a church meeting. Start selling in small batches.  

Video / Image Editing. There are tons of videos now circling the internet. Youtubers and other Vloggers are populating the internet exponentially. Most of them do not know how to edit their videos or images. If you have the skill, this is a great opportunity. You can leverage the Fiverr website to sell your skill.

Gaming. Yes. You can make money by playing games. Just like any other business. Build your game character to a certain level that makes other players drool. Then sell it. Or, if you are a developer, just develop a fun and addictive game that you can monetize. Remember Flappy Bird?

Coaching. You can be a soccer coach or a business coach. Or dancing. Or giving out piano lessons. Or anything. I used to be a math tutor. If you have the skill, coach other. Do not limit yourselves.

Dog Walking. Any dog lover will love this job. You can take dogs for an hour or two walk. Then you can return home and do something else. What a great side income, right?

Writing / Blogging. I have been dreaming of writing a novel. I found out the closest thing about being a novel writer is to become a blogger. Not just any blog, but I love to share what I have learned. This is the path that I love to recommend as well. You can monetize your blog and have a side income.


Guide to Making Money Online

Since this website theme is the online business, I will go further and explain more for making money online. Actually, I already write this guide to making money online on another post.

But this is another approach.

I will really go to the foundation of any making money opportunities: HELP PEOPLE.

The more you help, the richer you get.


Just look how rich people get rich.

  • Henry Ford became rich because he helped people to move around faster with his car.
  • Bill Gates became rich because his operating system is easy to use. A lot of people becomes so accustomed to it, they do not willing to change another operating system.
  • Steve Job became rich because Apple helped a lot of people listening to music with iPod. iPhone also helps a lot of people with its revolutionary feature.

By those examples, you can see that the more your “product” helps people, the more money you will get.

Help You Help Me - Jerry Maguire - The Online Business Now


But I don’t know how to produce something?

You should learn then. Actually, from previous examples, you can see that you don’t have to produce a thing.

Walking dogs are not a product but a service. But, I agree, you can’t get rich by walking dogs.

That’s why you need the second element to the Guide to Making Money. Scaleability.

You need to be able to scale your money-making scheme. Build a system to reproduce everything that you have done right.


For an example:

  • If you can sell one product with a profit of $5, do it again for 1,000 times to have $5,000 in your bank account.
  • If you can sell 1,000 times, you can raise your profit a bit to make additional $1,000 or $2,000. Just increase your profit to $6-$7 a piece.


The Most Important Asset

Do you notice what is the main active contributor that can make or break your ability to make money and get rich?

It is TIME.

Dog walking is time-consuming. You can walk a dog for $15 per hour.

What is your total working hour for a day? 8 hours if you are not doing anything else, right? So the potential income will be $120 a day.

How many dogs can you walk each round? 4 dogs? 6 dogs? So your “maximal” income is $720 a day.

Seems a lot, right? But do you TIME is the most valuable asset-The Online Business Nownotice that I use the condition to its optimal possibility? What if half of your customers are moving out of your neighborhood? Your income will be halved.

What if you are sick? You can’t get out from your bed. Your income will be zero.

Not to mentioned if your customers decide to get someone else to walk their dogs.

But, you can actually use the time to your advantage and build scalability. Hire people to “scale” your business. More people works for you, more dogs that you can take for a walk. More dogs equal more money.


That’s why I enjoy my online business adventure. I can multiply my business doing what I love, with minimal time involvement. You can start your online business now.



  • You need to increase your income.
  • You need to HELP people.
  • The more you help, the more money you make.
  • How much money do you need for retirement? Depends on your lifestyle.
  • Prepare your retirement right now. You need 25 years of expenses (at least).
  • Start a business right now.


How much money do you need for retirement if you to retire right now? Do you have a preparation for it? What kind of preparations?



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12 thoughts on “How Much Money Do You Need to Retire?

  1. We hear all the time that we are living longer. And therefore that means that we will need more money when we retire. I was shocked by your example. That is a lot of money to earn per month.

    Doing jobs on the site would help. But you do need to earn quite a lot for this to work out for you. If you’re doing all these jobs then where is your down time?

    1. You are right, Owain. To do all those jobs, you will have no more down time.

      That’s why I recommend you to SCALE your efforts. Do not rely on yourself! You only have 24 hours a day. If you can scale it, you may have “endless” time in a day.

  2. Hi Arief,
    Thank you for a lot of information about the $ number of retirement. The Bloomberg calculator is a nice to have. It’s true that a lot of people will not have enough at the end of normal working life at the age of about 65. One tip: let your links open in a new window.

    1. Hi Reinier,
      The money is staggering. People will not have enough money and have to rely on Government’s aid. You are lucky if the Government have enough money. If not, you will be screwed.

  3. Thank for your great article. While reading i am not able to blink my eyes because your content and sentences awesome. I have few doubts about online business and investiments and retirement. After reading i got answers. Retirement calculator bloomberg is giving good information. To do all those time maintance very important.

    1. I hope you already prepared for your retirement or at least on your journey to it.

      Time is the most important asset in our lives. Just start now.

  4. Great post! For someone who lives a relatively simple lifestyle what do you think is a good amount for a couple to have at retirement if we retired at 65? I’m only 22, but I’ve been told by many that now is the time to start putting away (although with so many other huge expenses that’s proving a bit difficult). Thanks!

    1. Hi Sam, I think it really depends on your target lifestyle later. Just use the calculator and you will find out your number.
      It is a great thing that you learned this at your age. You have an advantage.

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    1. Hi Cesario,

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  6. This is a very interesting perspective. I think online business is going to help a lot of people retire early and late bloomers retire on time because of how potent the online marketplace truly is.

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