When Should You Actually Stop Saving? A Framework From Financial Expert Tony Yang

Figuring out the right moment to stop contributing to your retirement fund can feel like solving a puzzle without all the pieces. Everyone talks about retirement readiness differently, and there’s no universal formula that works for everyone. Financial expert Tony Yang recently broke down the practical framework that helps determine when your portfolio has truly reached its target.

The Six-Factor Retirement Analysis

Rather than guessing when “enough is enough,” professionals like Tony Yang recommend a systematic approach. The process hinges on understanding six interconnected dimensions that shift your retirement timeline.

Start With Your Target Number

The foundation is calculating your retirement number—essentially, how much money you need to accumulate. The method is straightforward: estimate your annual retirement expenses, then divide by your withdrawal rate (typically 4-5% annually, suitable for a 30-year retirement horizon). This gives you the portfolio size needed. However, inflation adjustments are critical since a dollar today won’t buy the same amount in 20 years. Investment firms like T. Rowe Price suggest that a 40-year-old should have 1.5 to 2.5 times their salary accumulated, while a 50-year-old should target 3.5 to 5.5 times their salary.

Calculate Your Current Net Position

The second factor is your existing portfolio value. This encompasses retirement accounts, regular savings, home equity, and other investable assets. Understanding your current position gives you a clear baseline to measure progress.

Project Realistic Growth

Most advisors assume a conservative 6% annual return, though this can be adjusted based on your risk tolerance and market expectations. The key is being honest about returns rather than overly optimistic.

Examine Your Savings Pace

How much are you contributing annually? Tony Yang emphasizes a counterintuitive point: over-saving can be self-defeating. If you’re restricting every aspect of life now to have more money later, you might not have years left to enjoy it. The ideal scenario is when your portfolio grows organically without additional contributions, freeing up cash for immediate experiences.

Define Your Spending Blueprint

Your retirement lifestyle determines how much you actually need. Healthcare expenses, housing, travel, and daily living costs vary dramatically by person. Fidelity research indicates retirees typically spend between 55-80% of their pre-retirement income, depending on activity level and choices.

Account for Supplementary Income

Don’t overlook other potential revenue streams in retirement—Social Security, pension payments, rental income, or part-time work. While these shouldn’t be over-relied upon, they meaningfully reduce how much portfolio savings you need.

Practical Approaches to Finding Your Answer

Once you’ve gathered these six pieces of information, the next step is running the numbers. Some people use AI-powered retirement calculators to model different scenarios. Others explore the Coast FIRE method, where you continue working part-time purely to cover living expenses while letting investments grow untouched—effectively “coasting” toward your goal.

The reality is that retirement planning involves overlapping variables that make a simple answer impossible. Your decisions about lifestyle, work flexibility, and spending directly impact when you can stop saving. Working with a financial advisor ensures that when you do transition to retirement, your portfolio has sufficient size and you have genuine time remaining to live rather than just maintain.

The bottom line: stopping retirement savings isn’t a fixed milestone but rather the intersection of your accumulated assets, expected returns, planned spending, and personal priorities. Understanding all six factors gives you the confidence that you’re making an informed decision—not just hoping for the best.