I Asked Grok How Much Money Is Needed To Retire in 20 Years — Here’s What It Said

Group 1 - The average American believes they will need $1.26 million to retire comfortably, but actual needs depend on various factors such as expenses and life expectancy [1] - Grok, an AI chatbot, calculated that a person hoping to retire in 20 years would need approximately $866,575 based on specific assumptions [3][8] - The calculation for retirement savings considers that most people need about 70% of their current income in retirement, which for someone earning $72,000 translates to $50,400 annually in today's dollars [4] Group 2 - Social Security benefits significantly reduce the savings burden, with Grok estimating an annual benefit of $56,365 for a 47-year-old earning $72,000, leaving a retirement income gap of $34,663 [5] - The 4% rule suggests that retirees can withdraw 4% of their investments in the first year and adjust for inflation in subsequent years, ensuring savings last for at least 30 years [7] - To cover the income gap of $34,663, Grok recommends saving 28% of income per month, assuming a 7% annual return [8]