If you got a late start—or you’re just starting over—you can build up retirement savings relatively quickly. How much you can save in the next 15 or 20 years will depend on a number of factors, but you can still retire in comfort. We’ll cover those points below and give you some tools to plan your retirement.
If you want to have enough money saved for retirement in 15 years, you have to be determined to save. For extra luck, For example, the higher your earnings, the easier it is to save a substantial amount. Good health is also helpful, as it allows you to keep working long enough to continue your saving. Plus, being healthy keeps healthcare costs low in retirement.
Don’t worry, we’re going to use calculators to do the math for you. But we need to start with some numbers that go into the calculations.
As you save for retirement, it’s important to know what kinds of income you can expect from different sources. Your “base” income sources like Social Security and pension can reduce the amount you need to save.
Now, let’s see how much money you might need, based on how much you want to spend (or pay yourself). With that information, we can figure out if 15 years is enough time to save for retirement. Submit
Calculation: To figure out how much you need to save each year, this Google Sheet has the calculations set up (you must make your own copy of the sheet, which prevents anybody from working on top of you).
Look, I know what you’re thinking – retiring in just 15 years sounds like a fantasy. But lemme tell you, it’s not just possible, it’s actually happening for real people right now.
I’ve been researching this topic obsessively (maybe too much, if you ask my spouse), and what I’ve discovered is pretty exciting for anyone who wants to fast-track their way to financial freedom.
Whether you got a late start on retirement planning or you’re just eager to exit the rat race sooner rather than later, a 15-year timeline is absolutely doable with the right approach In this article, I’m gonna break down exactly how to make this happen
The Quick Math: What You Need to Save
First, let’s cut to the chase and talk numbers. The amount you need to save depends on several factors:
- Your desired retirement lifestyle
- Your current age
- Your existing savings
- Your income potential over the next 15 years
- Expected income sources in retirement (Social Security, pensions, etc.)
With just 15 years to build your nest egg, you’ll need to be more aggressive than someone with 30+ years ahead of them. The standard advice of “save 15% of your income” probably won’t cut it here. Instead, you might need to aim for saving 30-40% of your income or even more.
The Three Pillars of a 15-Year Retirement Plan
Based on the stories of couples who retired in 15 years or less and made it work, there are three main things that must happen:
1. Aggressive Debt Elimination (Years 1-5)
Your first priority should be wiping out debt – ALL of it. This means:
- Paying off credit cards using either snowball or avalanche methods
- Eliminating student loans
- Getting rid of car payments
- And yes, even considering accelerating your mortgage payoff
A couple who managed to retire in their 40s focused heavily on debt elimination in the first five years of their plan. They celebrated each milestone to stay motivated while gradually adopting a more minimalist lifestyle.
As Justin Pritchard, CFP® points out, “With a relatively short timeline, generic advice like saving 15% of your salary is probably insufficient.” Instead, you need a customized approach that starts with getting debt-free.
2. Creating Multiple Income Streams (Years 6-10)
Once you’ve eliminated debt, it’s time to supercharge your savings and investments:
- Maximize retirement account contributions (401(k), IRA, HSA)
- Invest in a diversified portfolio (primarily index funds)
- Explore passive income sources like rental properties or online businesses
This middle phase is critical. You need to not only save aggressively but also start building income streams that will continue after you leave your primary job
During this phase, aim to:
- Max out ALL retirement accounts
- Build a investment portfolio outside retirement accounts
- Develop at least 1-2 passive income sources
- Continue living well below your means
3. Decoupling from Your Full-Time Job (Years 11-15)
In the final stretch, you’ll need to:
- Fine-tune your retirement lifestyle expectations
- Calculate your exact financial needs
- Ensure your passive income streams are stable
- Plan for healthcare costs (often underestimated!)
By this point, your investment habits should be second nature, and you should have a clear vision of how much you need to maintain your desired lifestyle in retirement.
Critical Factors for Success
Social Security and Pension Timing
When you take retirement benefits has a massive impact on your monthly income. For Social Security:
- Taking benefits at 62 means reduced payments
- Waiting until 70 maximizes your monthly check
- The longer you work, the more your earnings contribute to your final benefit calculation
The same thing usually happens with pensions: the longer you wait, the more you’ll pay each month.
Investment Strategy
You only have 15 years to make your money grow, which is less than someone who has decades ahead of them. This means:
- Your savings rate is more important than your investment returns
- You can’t afford to be too conservative, but also can’t risk big losses
- A measured approach to risk is typically wisest
As noted in the sources, “with just 15 years until retirement, your investment returns are important, but they might not be able to catch up from a significant shortfall.”
Embracing Minimalism
Almost every successful early retiree says the same thing: you need to change how you relate to things.
A minimalist lifestyle doesn’t mean living in poverty. It means:
- Prioritizing experiences over possessions
- Being intentional about spending
- Questioning whether purchases align with your values
- Focusing on what truly brings you happiness
A Real-Life 15-Year Plan (From a Couple Who Did It)
One couple who successfully retired in their 40s shared their exact 15-year strategy:
Years 1-5: Debt Elimination
- They paid off all consumer debt using the snowball method
- They downsized their home to reduce housing costs
- They celebrated each debt milestone to stay motivated
Years 6-10: Building Wealth
- They maxed out retirement accounts every year
- They invested primarily in index funds
- They purchased two rental properties for passive income
- They started a small online business as a side hustle
Years 11-15: Preparing for the Transition
- They calculated exactly how much they needed monthly
- They ensured healthcare coverage was accounted for
- They gradually reduced work hours before fully retiring
- They developed hobbies and interests to enjoy in retirement
Common Objections (And Why They’re Wrong)
I can already hear some of you saying, “But I can’t even make ends meet on my current income!” Look, I get it. The math seems impossible at first glance.
But here’s the thing – people are doing this every day. It’s not about your income level; it’s about your savings rate and lifestyle choices.
Some people choose to:
- Live in smaller homes or RVs
- Use public transportation instead of owning cars
- Shop exclusively at thrift stores
- Grow their own food
And others with higher incomes simply avoid lifestyle inflation while maintaining a comfortable (but not extravagant) standard of living.
The point is, this approach works regardless of your income level – it just requires different lifestyle adjustments depending on what you earn.
Planning for the Unexpected
Let’s be real – life happens. Your 15-year plan needs to account for potential curveballs like:
- Health issues
- Job loss
- Market downturns
- Family emergencies
This is why creating multiple income streams is so important. It provides redundancy and flexibility when things don’t go according to plan.
Is a 15-Year Retirement Plan Right for You?
Honestly, this approach isn’t for everyone. It requires discipline, dedication, and some sacrifices along the way. But the reward is potentially decades of freedom from the 9-to-5 grind.
Ask yourself:
- Am I willing to significantly reduce my spending now for future freedom?
- Can I stay motivated for 15 years without major lifestyle inflation?
- Do I have the discipline to stick with an aggressive saving plan?
- Is early retirement more important to me than current consumption?
If you answered yes to these questions, a 15-year plan might be perfect for you.
Next Steps to Take Today
If you’re serious about retiring in 15 years, here are your immediate action items:
- Calculate your current savings rate and set a target (aim for 30%+ if possible)
- Create a debt elimination plan with specific payoff dates
- Maximize retirement account contributions
- Explore potential passive income sources
- Consider meeting with a financial planner to create a customized plan
Final Thoughts
I firmly believe that with dedication and smart planning, retiring in 15 years is absolutely achievable for many people. It won’t be easy, but nothing worthwhile ever is.
The math works. People are doing it. The question isn’t whether it’s possible – it’s whether you’re willing to make the necessary changes to make it happen.
P.S. Remember that personal finance is, well, personal. Your specific situation is unique, so adapt these strategies to fit your circumstances and goals. And while I’ve tried to be comprehensive, there’s always more to learn – so keep researching and refining your plan!
Check Widow, Spouse, and Ex-Spouse Benefits
If you’re starting over due to life changes, don’t ignore benefits that you might qualify for based on your marriage—even if it was long ago. Widows can often receive survivor benefits from a deceased spouse’s work record. Ex-spouses may also qualify for benefits (assuming certain conditions are met).
If you’re currently married, you may qualify for other spousal benefits, so check with Social Security and your spouse’s employer for details.
When You Take Benefits
Your decision on when to retire is critical. In some cases, the longer you wait, the more guaranteed income you receive. Assuming you have the option of waiting, that’s often beneficial—and you can stop working several years before you claim your benefits.
There are two good reasons for waiting to take retirement benefits:
- Most of the time, your monthly payment will be higher if you are older.
- The longer you work, the more of your earnings count toward your total income.
Social Security allows most people to begin retirement benefits as early as age 62. But your income will be reduced if you claim that early. You get the maximum amount if you wait until age 70, and a bigger Social Security payment means you don’t need to save as much money.
The average Social Security retirement payment is $1,514 per month, but yours might be higher or lower, depending on your earnings history.
Pensions are often similar to Social Security. The older you are, the fewer years your employer expects to pay you (based on life expectancy), so you get a bigger payment. Plus, you might have more years of service credit if you work longer, which is often helpful.
What you need to do to retire in 15 years
FAQ
What is the 15 retirement rule?
The “15% retirement rule” is a common guideline, primarily from financial institutions like Fidelity, T. Rowe Price and Ramsey Solutions say that people should save at least 15% of their pre-tax income every year during their careers to be able to retire comfortably. This includes employer contributions and is meant to replace enough of your income in retirement. However, the ideal percentage can change depending on your starting age, the type of lifestyle you want in retirement, and other sources of income like Social Security or a pension.
What is the happiest age to retire?
While 63 is frequently cited as the “sweet spot” for retirement happiness in studies like the 2024 MassMutual Retirement Happiness Study, there’s no single “best” age for everyone, as happiness in retirement depends on individual financial security, health, personal readiness, and emotional preparation, not just a specific number.
What is the youngest to retire?
The earliest age to start getting Social Security retirement benefits is 62, but the amount you get each month is less. For federal employees, the earliest retirement age can be as young as 50, depending on their year of birth and years of service.
Can I save enough to retire in 20 years?
Is it possible to retire in 15 years?
It’s possible to retire in 15 years, regardless of where you are on your financial journey. In this article, I will prove that this is achievable. BIG NEWS: I’ve convinced a real live person, named Roger, to be ‘Test Subject #1’ to demonstrate the theory in real life. You’ll meet him in the post below.
How to save enough for retirement in 15 years?
To save enough for retirement in 15 years, you need to be a determined saver, and some good fortune doesn’t hurt. For example, the higher your earnings, the easier it is to save a substantial amount. Good health is also helpful, as it allows you to keep working long enough to continue your saving.
How do I plan my retirement in 15 years?
We’ll cover those points below and give you some tools to plan your retirement. To save enough for retirement in 15 years, you need to be a determined saver, and some good fortune doesn’t hurt. For example, the higher your earnings, the easier it is to save a substantial amount.
Can a millennial retire in 15 years?
It takes work, an aggressive savings rate and a real commitment to your highest priorities in life for a millennial to retire in 15 years. Retirement In 15 Years Is Possible, regardless of your age. To prove that the theory presented in this post can be achieved in the real world, we’ve recruited a Millennial to be a test subject.
Can I retire in my 60s?
But if you want to retire in your 60s, that million-dollar account is entirely doable. Just to reiterate the point above, planning for retirement is entirely different depending on your age. If you are 45 and want to retire in the next 20 years, then you can anticipate programs like Social Security and Medicare.
What if I want to retire in 20 years?
If you are 45 and want to retire in the next 20 years, then you can anticipate programs like Social Security and Medicare. With Social Security, depending on your lifetime earnings, you can expect up to several thousand dollars per month in additional income. With Medicare, you can plan for significantly reduced healthcare costs.