Ask an Advisor: When Can I Stop Saving for Retirement? I’m a 39-Year-Old Military Officer With $722K in Savings

At what point should you stop contributing to your investment and retirement accounts and just let time and compound interest do its thing? I’m 39 (married with a 1-year-old) with $587,000 in a 401(k)/TSP and $135,000 in a Roth IRA. My employer matches up to 5% of 401(k) contributions.

I’m planning to sell a rental property in the spring and expect to net about $250,000 after fees and taxes. I also own a primary residence with a $700,000 balance at 6.25% (VA loan). My mortgage payment (not including insurance and taxes) is $4,500 per month, and at the current pace it would be paid off around age 69.

I’m an officer in the U.S. military and expect to retire in 2030 with a pension of roughly $4,700 per month. I’ve transferred my military education benefits to my 1-year-old, so college would essentially be covered if he attends. My goal is to fully retire from the workforce around age 59 ½. -Brian

Hey Brian, thanks for the question. I’m also an officer (National Guard) and will likely be retiring in 2029 myself. Knowing when you can stop saving and let compounding take you the rest of the way requires a little estimation. Based on the pension amount you provided, I’m going to assume that you’ll retire as either a lieutenant colonel or major. If that is the standard of living you want to maintain in retirement then you are probably there now.

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Assess Your Current Standard of Living

The first step toward answering your question is to get an idea of how much income you want to replace in retirement. A simple way to estimate this is to look at your current compensation and lifestyle. Even if the exact number is off by some amount, this gives you a reasonable baseline.

Once you estimate the income you’ll need to support your target retirement lifestyle, you can compare it to the income your assets can realistically generate. For illustration purposes, let’s say that number is around $160,000 per year.

(And if you need additional help estimating your retirement income needs, speak with a financial advisor.)

Estimating Investment Growth

Right now you have roughly $722,000 total in retirement assets at age 39. You’ll also have the $250,000 you expect from the sale of your rental property. If you plan to retire around age 59 ½, that gives you about 20 years of compounding.

If you contributed nothing else, and your investments earned a long-term return in the 7% range, your $972,000 could grow to about $3.8 million by retirement age. Adjusted for inflation (assuming 3% annually), that would be worth about $2.13 million in today’s dollars.

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What Other Sources of Income Do You Have?

Here, your situation is very different from the average retiree. You indicated that in 2030 you expect to receive a pension of around $4,700 per month. That’s $56,000 per year. That pension provides a stable income floor that most retirees don’t have, and it reduces the amount your portfolio will need to generate.

In addition, you’ll likely receive Social Security benefits down the road. However, since you plan to retire from work at 59 ½, you won’t be able to collect Social Security right away. You can’t start collecting your benefit until age 62 at the earliest. But it often makes sense to delay even further than that.

Whenever you begin collecting, it’s reasonable to assume that Social Security will provide meaningful income in your 60s. Potentially tens of thousands per year, depending on your earnings record. (And if you need help estimating how much income you can expect in retirement, speak with an advisor.)

What Can You Withdraw From Your Savings?

Once you estimate your retirement account value at 59 ½, the next step is to estimate how much income it can safely provide.

As a starting point, we can use the 4% rule to estimate withdrawals from your portfolio. Spend some time thinking about the withdrawal method that makes the most sense for you, though.

In this case, we’ll want to use the inflation-adjusted estimate of $2.13 million. So, we’d expect you to have about $85,000 from portfolio withdrawals. Then add your pension income of about $56,000 per year. With that you’re already in the neighborhood of $140,000 before even factoring Social Security. Assuming you receive $2,000 per month in Social Security benefits at age 62, you’ve just about hit the $160,000 income replacement target.

Tracking Your Progress

I think it’s fair to say that, based on what you’ve shared, you’re in a strong position. Your pension gives you stability. You also have a healthy balance in your retirement accounts, and your child’s education is already planned for.

However, a lot can happen in the 20 years between now and retirement. As long as you continue to monitor your progress, you should be able to get there with minimal tweaks. For example, suppose that the market is exceptionally bad for a period of time. You can likely make up any ground you lose by simply contributing a little more when it does.

While you may be close to the point where you could stop contributing, you may not want to entirely.

Even if you decide you’re done saving, you should still strongly consider contributing at least enough to get the full 5% employer match. That match is essentially a guaranteed return, and walking away from it is one of the few financial decisions that’s hard to justify mathematically. A financial advisor can help you weigh similar financial decisions and create a long-term plan based on your goals.

Bottom Line

Reaching $722,000 in savings by age 39 puts you far ahead of most investors, but deciding when to stop saving for retirement isn’t just about hitting a number. It depends on how your portfolio aligns with your desired lifestyle, expected military and post-military income, healthcare needs and long-term inflation assumptions. Even if you’re financially independent on paper, continuing to save can create more flexibility and security over time.

Retirement Planning Tips

A financial advisor can coordinate tax strategy, investment design, withdrawal planning, Social Security timing and estate considerations into a unified framework. Finding a financial advisor doesn’t have to be hard. SmartAsset’s free tool matches you with vetted financial advisors who serve your area, and you can have a free introductory call with your advisor matches to decide which one you feel is right for you. If you’re ready to find an advisor who can help you achieve your financial goals, get started now.
Many investors default to age-based glide paths that steadily reduce equity exposure. A more nuanced approach adjusts risk based on funding status, market valuations, and time horizon rather than age alone. For example, maintaining growth exposure after retirement may support longer-term purchasing power, while short-term spending needs can be buffered with lower-volatility assets.

Brandon Renfro, CFP®, is a SmartAsset financial planning columnist and answers reader questions on personal finance and tax topics. Got a question you’d like answered? Email AskAnAdvisor@smartasset.com and your question may be answered in a future column.

Please note that Brandon is not an employee of SmartAsset and is not a participant in SmartAsset AMP. He has been compensated for this article. Some reader-submitted questions are edited for clarity or brevity.