Retirement Calculator
Plan your retirement savings and see how much you need to save each month to reach your goals.
Retirement Planning Formulas
Planning for Your Retirement
Retirement planning is one of the most important financial decisions you'll make. Our retirement calculator helps you visualize your path to financial independence by projecting how your current savings and contributions will grow over time.
Whether you're just starting your career or nearing retirement, understanding how much you need to save—and whether you're on track—is essential for making informed decisions about your financial future.
Goal Tracking
See if you're on track to meet your retirement goal.
Growth Projection
Visualize how compound interest grows your savings.
Income Planning
Estimate your sustainable retirement income.
Inflation Adjustment
Account for inflation in your planning.
Understanding Retirement Numbers
Several key numbers drive your retirement planning. Understanding each helps you make better decisions about saving and investing.
Time Horizon
The years between now and retirement. More time means compound interest works harder for you.
Rate of Return
Historical stock market returns average 7-10% annually. Conservative estimates use 6-7%.
Savings Rate
The percentage of income you save. Aim for 15-20% including employer matches.
Inflation Rate
Historical average is 3%. Your goal amount needs to account for future purchasing power.
Retirement Savings Milestones
Use these age-based milestones to gauge whether you're on track for retirement.
| Age | Savings Target | Example (at $75K salary) | Notes |
|---|---|---|---|
| 30 | 1× salary | $75,000 | Foundation built |
| 35 | 2× salary | $150,000 | Momentum building |
| 40 | 3× salary | $225,000 | Compound growth kicks in |
| 45 | 4× salary | $300,000 | Halfway point |
| 50 | 6× salary | $450,000 | Catch-up contributions available |
| 55 | 7× salary | $525,000 | Final stretch |
| 60 | 8× salary | $600,000 | Approaching retirement |
| 67 | 10× salary | $750,000 | Full Social Security age |
The 4% Rule Explained
The 4% rule is a widely-used guideline for retirement withdrawals. It suggests you can withdraw 4% of your portfolio in year one, then adjust for inflation each year, with a high probability of not running out of money over 30 years.
How It Works
Multiply your desired annual retirement income by 25 to find your target nest egg. Want $60,000/year? You need $1.5 million. This creates a sustainable income stream while preserving your principal.
Limitations
The 4% rule assumes a balanced stock/bond portfolio and 30-year retirement. If you retire early or expect a longer retirement, consider using 3-3.5% for more safety margin.
Flexibility
Real retirees can adjust withdrawals based on market conditions. Spending less in down years and more in good years improves success rates significantly.
Other Income
Social Security, pensions, and part-time work reduce the amount you need from savings. Factor in all income sources when calculating your required nest egg.
Maximizing Your Retirement Savings
Strategic decisions can significantly boost your retirement savings. Here are the most impactful actions you can take.
Maximize Employer Match
Always contribute enough to get your full employer 401(k) match—it's free money. A typical 50% match on 6% of salary is an instant 50% return on your contribution.
Use Tax-Advantaged Accounts
Max out 401(k)s ($23,000 in 2024, $30,500 if 50+), IRAs ($7,000, $8,000 if 50+), and HSAs ($4,150 individual, $8,300 family) before taxable accounts.
Start Early
Someone saving $500/month from age 25 accumulates more than someone saving $1,000/month from age 35, assuming 7% returns. Time is your greatest asset.
Increase with Raises
Commit to saving at least half of every raise. You won't miss money you never spent, and your savings rate grows without lifestyle sacrifice.
Catch-Up Contributions
After age 50, you can contribute extra to retirement accounts. Use this to accelerate savings in your peak earning years.
Asset Allocation
Younger investors can take more risk with higher stock allocations. Gradually shift to more bonds as retirement approaches to reduce volatility.
Common Retirement Planning Mistakes
Avoiding these common pitfalls can make a significant difference in your retirement outcome.
Starting Too Late
Every year you delay costs you significantly due to lost compound growth. Even small amounts early beat larger amounts later. Start now with whatever you can.
Underestimating Healthcare
Healthcare costs in retirement can exceed $300,000 for a couple. Factor in Medicare premiums, supplements, and long-term care when planning.
Underestimating Longevity
Many people live into their 90s. Plan for 30+ years of retirement, not 20. Running out of money at 85 is a real risk if you don't save enough.
Ignoring Inflation
At 3% inflation, prices double every 24 years. Your retirement needs in 30 years will be much higher than today's dollars suggest.
Taking Too Much Risk
A market crash just before or early in retirement can devastate your plans. Reduce risk as you approach retirement to protect your nest egg.
Carrying Debt into Retirement
Entering retirement with mortgage, car, or credit card debt strains your fixed income. Prioritize becoming debt-free before you retire.
Frequently Asked Questions
How much do I need to retire comfortably?
A common rule is to save 10-12 times your final salary by retirement age 67. However, your specific needs depend on desired lifestyle, location, healthcare, and other income sources like Social Security. Use the 4% rule: multiply your desired annual income by 25 for your target savings.
When should I start saving for retirement?
As early as possible! Starting at 25 versus 35 can mean retiring with twice as much money, even with the same monthly contributions. If you haven't started yet, start now—it's always better late than never.
Should I choose a traditional or Roth 401(k)/IRA?
Traditional accounts give you a tax deduction now but you pay taxes in retirement. Roth accounts use after-tax dollars but grow and are withdrawn tax-free. If you expect higher taxes in retirement (younger workers, lower current income), choose Roth. If you're in peak earning years, traditional may be better.
What rate of return should I expect?
Historically, diversified stock portfolios have returned about 10% annually before inflation, or 7% after. For conservative planning, use 6-7%. Bond-heavy portfolios return less (4-5%). Your actual returns will vary year to year.
Can I retire early?
Yes, but it requires more savings and strategy. To retire at 55 instead of 65, you need savings to last an extra decade. Early retirees often use taxable accounts until 59½ (when penalty-free retirement account withdrawals begin), and delay Social Security for higher benefits.
How do I catch up if I'm behind on retirement savings?
Increase your savings rate aggressively—aim for 20-25% of income. Use catch-up contributions after age 50. Delay retirement if possible (each year adds savings and reduces withdrawal years). Consider working part-time in retirement. Reduce lifestyle expectations if needed.
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