How Much Do You Need to Save per Month to Retire With $10 Million?

It's going to take some serious saving to reach this amount.

For people who save diligently, retiring as a millionaire or even a multimillionaire is a realistic goal. It's quite a bit harder to retire with $10 million, which puts you near the top 1% of net worths. If this is a goal of yours, or if you're just curious about what it would take, we ran the numbers to find out.

Here's how much you need to save per month to retire with $10 million

To reach $10 million by retirement, your age and your portfolio's annual return determine how much you need to save. If you start at a younger age, you won't need to save as much per month. Returns vary, since stock prices go up and down, but a 10% annual return is a reasonable estimate. That has been the average stock market return for the past 50 years.

With a 10% annual return, and a goal of retiring at 65 with $10 million, here's how much you'd need to save by age:

• If you start at 20 years old, you need to save $1,159 per month.
• If you start at 30 years old, you need to save $3,075 per month.
• If you start at 40 years old, you need to save $8,473 per month.
• If you start at 50 years old, you need to save $26,228 per month.

Yes, those are some very big numbers. They also get a whole lot bigger the longer you wait. If you're in your 20s or early 30s and you make a high salary, then it could be possible to save $10 million. If you start in your 40s or 50s, it'll be extremely difficult.

Maximizing your income is a must

There are lots of ways to save more money and boost your retirement savings, but they only go so far. If your goal is $10 million, you'll need a very high salary, probably $150,000 per year or more. That's the key factor, because without a large income, it will be nearly impossible to save enough money.

Even if you aren't set on getting to $10 million for retirement, maximizing your income is still worth it. After all, no matter how much you want to save, making more money will help you get there faster. Here are a few options to grow your income:

• Further your education. Research shows that people with higher levels of education make more money on average. Depending on your field of study, an advanced degree could be your ticket to a high salary.
• Start a business. It takes time to build a successful business, but this is also one of the best ways to raise your earning potential.
• Regularly seek out raises or new job opportunities. If you have a full-time job, find out how you can move up and earn more every year. If you can't do that with your current employer, go job hunting, as changing jobs is often how people increase their income the most.

Investing your way to $10 million

While your income matters most, how you invest your money will also determine how much you can save. To have a chance at reaching $10 million, you'll need to squeeze out every last drop of extra cash available to you. That means taking advantage of tax savings offered through retirement accounts, getting your full employer match if you have a 401(k), and every other tool at your disposal.

Here are some tips on how to make the most of your money when you have a substantial savings target:

• Contribute the maximum to your 401(k). The limit in 2023 is $22,500 if you're under age 50 and $30,000 if you're 50 or older.
• Contribute the maximum across individual retirement accounts (IRAs). The limit for combined contributions across IRAs and Roth IRAs in 2023 is $6,500 if you're under age 50 and $7,500 if you're 50 or older.
• Go heavy on investing in stocks. While some investors prefer a mix of stocks and bonds, stocks provide much greater growth potential.
• Consider opening a health savings account (HSA). Although this type of account is designed to pay for healthcare costs, you can also use your HSA as a retirement plan for the tax benefits it offers.
• Consider real estate investing. This could be a good way to increase your returns, especially since you can use leverage. Keep in mind that real estate investing isn't easy and there's risk involved, but it may help you reach your goals.

Even with good saving and investing habits, there's a lot that has to go right to end up with $10 million. No one truly needs this much money, so don't put pressure on yourself to reach that goal. However, the strategies involved, like increasing income and using every possible wealth-building tool, are valuable no matter how much you want to save.