Retirement Calculator
Plan your retirement savings and see if you're on track to meet your retirement goals. Calculate how much you'll have saved and whether it's enough to maintain your lifestyle.
Your Retirement Details
Retirement Planning Guide
The 4% Rule Explained
The 4% rule is a retirement planning guideline that suggests you can withdraw 4% of your retirement savings in the first year, then adjust for inflation each year, with a high probability your money will last at least 30 years.
Example:
- Retirement savings: $1,000,000
- Year 1 withdrawal: $40,000 (4%)
- Year 2 withdrawal: $40,800 (adjusted for 2% inflation)
- This pattern continues for 30+ years
How Much Do You Need?
A common formula: Annual retirement income needed ÷ 0.04 = Total needed
- $40,000/year needed → $1,000,000 total
- $60,000/year needed → $1,500,000 total
- $80,000/year needed → $2,000,000 total
Retirement Savings Tips
- Start early - Time is your greatest asset due to compound growth
- Get the match - Always contribute enough to get full employer 401(k) match
- Increase gradually - Raise contributions by 1% each year
- Max tax-advantaged accounts - 401(k), IRA, HSA, etc.
- Diversify investments - Don't put all eggs in one basket
- Rebalance annually - Maintain target asset allocation
- Avoid early withdrawals - Penalties and lost growth compound
Account Types to Consider
401(k)
Employer-sponsored, often with matching. Pre-tax contributions, taxed on withdrawal.
Roth IRA
After-tax contributions, tax-free withdrawals. Income limits apply. Great for younger savers.
Traditional IRA
Pre-tax contributions (may be deductible), taxed on withdrawal. Anyone can contribute.
HSA
Triple tax advantage! Pre-tax contributions, tax-free growth, tax-free medical withdrawals.
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Frequently Asked Questions
How much should I save for retirement?
Financial advisors often recommend saving 15-20% of your gross income for retirement. A common rule of thumb is to have 10x your annual salary saved by retirement age. The earlier you start, the less you need to save each month due to compound growth.
What is the 4% rule?
The 4% rule suggests you can withdraw 4% of your retirement savings in the first year, then adjust for inflation each year, with a high probability your money will last 30 years. For example, $1 million provides $40,000 annual income.
What is a realistic return rate for retirement investments?
Historically, the S&P 500 has returned about 10% annually before inflation (7% after inflation). Conservative estimates use 6-7% for a diversified portfolio. As you near retirement, typically shift to more conservative investments with 4-5% returns.
Should I max out my 401(k) or pay off debt?
Always contribute enough to get your full employer match (free money!). Then prioritize high-interest debt (>6-7% APR). After that, increase retirement contributions. Low-interest debt like mortgages can coexist with retirement saving.
When should I start saving for retirement?
Start as early as possible! A 25-year-old saving $500/month at 7% return will have $1.2 million by 65. Starting at 35 with the same amount yields only $560k. The first 10 years make a massive difference due to compound growth.
Financial Disclaimer
This calculator is provided for educational and informational purposes only. The results are estimates based on the information you provide and should not be considered as financial, legal, or tax advice.
Actual results may vary based on your specific circumstances, market conditions, and other factors. Always consult with qualified financial, legal, and tax professionals before making any financial decisions.
We make no guarantees about the accuracy, completeness, or reliability of the calculations. Use this tool at your own risk.