Many Americans don’t do arithmetic in retirement.

According to investment firm Edward Jones’ 2020 Four Pillars of the New Retirement study, more than 75% of people looking to retire haven’t calculated how much money they need before they take the plunge.

Fortunately, CNBC cracked the numbers, and we can tell you how much you need to save to get a passive income of $ 50,000 each year in retirement.

First, a few basic rules. The numbers assume you will retire at 50, now have no money to save, and plan to put away a significant portion of your income to meet your goal.

For investments, we assume an annual return of 4% if you save. We don’t take into account inflation, taxes, or any additional income you may get from Social Security and your 401 (k).

In retirement, we use the “4% rule”, a general principle that says you can comfortably withdraw 4% of your portfolio every year.

It is important to note that given the recent market volatility, there is a risk that you will have to lower your spending percentage in the future.

Check out this video for a full breakdown of the numbers.

More from Invest in You:

Like Walmart and other large companies are trying to attract more youthful employees
Americans are more in debt than ever, and experts say “money disruptions” could be to blame
How Much Money Do You Need to Retire? Start with $ 1.7 million

Disclosure: NBCUniversal and Comcast Ventures are investors in Acorns.