# Your Retirement Number > Understand how the model calculates and displays the 25x benchmark. ## A Numerical Benchmark, Not a Retirement Decision The product can compare invested assets with an expenses-based benchmark. Reaching that benchmark does not determine whether or when a person can retire. ## The 25x Rule A commonly discussed numerical benchmark is the **25x rule**: > **Benchmark amount = 25 times the annual expense input.** For example: - $40,000 annual expenses → $1,000,000 benchmark - $60,000 annual expenses → $1,500,000 benchmark - $100,000 annual expenses → $2,500,000 benchmark ## Why 25x? The 25x calculation is the inverse of a 4% annual withdrawal assumption. The label does not make the withdrawal rate safe or suitable for a user. ``` 25 x annual expenses = benchmark associated with a 4% annual withdrawal assumption ``` For example, 4% of $1,000,000 is $40,000. The model does not establish that this withdrawal can be sustained for a particular person or period. ## What Plan in Decades Shows You When you create a scenario, we calculate: 1. **Your current position** - How close you are to 25x 2. **Your trajectory** - When you'll reach 25x at current savings rates 3. **What-if analysis** - How changes affect your timeline This shows when the scenario first reaches the selected numerical benchmark. It does not answer whether the user should stop working. ## Important Caveats The 25x rule is a guideline, not a guarantee: - It assumes a diversified portfolio - It doesn't account for pension income (which reduces the amount you need) - Healthcare costs vary dramatically by country - Your expenses may change in retirement - Sequence of returns risk matters in early retirement Use it only as an inspectable numerical benchmark within the scenario, not as a retirement-readiness assessment or recommendation. Consider appropriately qualified and authorised advice before making retirement or financial decisions. Canonical page: https://planindecades.com/help/finances/features/retirement-number/