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
Why Use This Calculator?
Calculate Exact Retirement Savings Target
Determine how much you need based on desired lifestyle. Want $60,000/year retirement income? Need $1,500,000 saved (using 4% withdrawal rule). Want $80,000/year? Need $2,000,000. This target guides all savings decisions today.
Discover If You're On Track or Behind
See if current savings rate reaches your goal. Age 35 with $50,000 saved, contributing $500/month at 7% = $1,247,000 at 65. Need $1,500,000? You're $253,000 short - must increase contributions $110/month now to close gap.
Integrate Social Security Projections
Factor in expected Social Security benefits (avg $1,900/month, $22,800/year). If you need $70,000/year and SS provides $25,000, you only need savings to generate $45,000/year = $1,125,000 vs. $1,750,000 without SS.
Plan Required Monthly Contributions
Calculate exact monthly savings needed to hit target. Age 40, need $1.5M by 65, have $100,000 now, expect 7% return = need $1,245/month. Can't afford that? Adjust retirement age to 67 = only $985/month needed.
Model Different Retirement Age Scenarios
See how working 2-5 extra years dramatically improves retirement. Retiring 65 vs 67: 2 years less savings needed, 2 years more compound growth, 2 years fewer withdrawals. This often adds $200,000-400,000 to available retirement funds.
Estimate Safe Withdrawal Rate Income
Use 4% rule (3% conservative, 5% aggressive) to convert savings to annual income. $1,000,000 saved = $40,000/year for 30+ years with high confidence. Combined with SS = total retirement income. Balance safety with lifestyle needs.
Step-by-Step Guide
Enter Your Current Age and Retirement Age
Input today's age and target retirement age. Standard is 65-67 for full Social Security. Every year earlier requires significantly more saved, every year later means less needed. Even 2-year difference is $100,000-200,000 impact on required savings.
Example:
Example: Age 32, plan retire 65 = 33 years to save. Age 45, retire 67 = 22 years. Age 55, retire 62 (early) = 7 years but higher savings target needed
Calculate Current Retirement Savings Total
Add all retirement accounts: 401k, IRA, Roth IRA, taxable investments earmarked for retirement, pension value. This is your starting point. Even modest current savings (e.g., $50,000) compounds to substantial amount by retirement.
Example:
Example: $35,000 in 401k + $12,000 Roth IRA + $8,000 taxable investment account = $55,000 total current retirement savings
Estimate Desired Annual Retirement Income
How much per year needed in retirement? Common rule: 70-80% of pre-retirement income. Earning $75,000 now = need $52,500-60,000/year retired. Some expenses drop (mortgage, work costs, SS taxes), others rise (healthcare, travel).
Example:
Example: Currently live on $65,000/year. No mortgage by retirement = only need $55,000. Want travel/hobbies = need $70,000. Factor in desired lifestyle
Input Expected Social Security Benefits
Check ssa.gov for personalized estimate (create account, see projected benefits). Average benefit: $1,907/month ($22,884/year) at full retirement age. Higher earners get more ($3,000-3,800/month max). This reduces required savings dramatically.
Example:
Example: Projected SS benefit $2,100/month = $25,200/year. Need $65,000 total = must generate $39,800 from savings = need $995,000 vs. $1,625,000 without SS
Set Your Monthly Contribution Amount
Enter how much you currently save monthly across all retirement accounts (401k, IRA, taxable). Calculator shows if this is sufficient or if you need to increase. Most need to save 10-20% of income for comfortable retirement.
Example:
Example: $500/month to 401k + $250/month to IRA = $750/month total. On $70,000 income that's 12.8% savings rate - good but might need 15% if starting late
Choose Realistic Investment Return Rate
Use 6-8% for retirement planning. Conservative (heavy bonds): 5-6%. Moderate (balanced): 6-7%. Aggressive (mostly stocks): 7-8%. Don't use 10%+ - better to exceed conservative target than fall short of optimistic projection.
Example:
Example: Age 30-45: use 7-8% (mostly stocks, time to recover). Age 45-55: use 6-7% (balanced). Age 55-65: use 5-6% (protection focus)
Factor in Inflation for Real Purchasing Power
Account for 2-3% annual inflation. $50,000 today's dollars = need $90,000 in 25 years to maintain same lifestyle (3% inflation). Calculator shows nominal amounts but think in real purchasing power terms.
Example:
Example: Plan $60,000/year income in today's dollars. Retiring in 30 years with 2.5% inflation = actually need $126,000/year nominal in future dollars
Calculate Using 4% Safe Withdrawal Rule
Standard: Can withdraw 4% of savings annually for 30 years with 95% success rate. Need $50,000/year = need $1,250,000 saved. Conservative: use 3% ($1,667,000 needed). Aggressive: 5% ($1,000,000 needed).
Example:
Example: $1,500,000 saved × 4% = $60,000/year safe withdrawal. Plus $25,000 Social Security = $85,000 total retirement income
Review Gap Between Target and Projection
See if current path meets goal. Projected $1.2M but need $1.6M = $400,000 shortfall. Must increase monthly savings, work longer, reduce retirement expenses, or accept lower retirement income. Adjust variables until gap closes.
Example:
Example: Need $1,800,000, current plan gets $1,400,000 = $400,000 short. Options: Add $250/month contributions, work 3 years longer, reduce target to $55k/year income
Plan for Healthcare Costs in Retirement
Average couple needs $315,000 for healthcare over retirement (Fidelity estimate). Medicare starts 65 but has premiums, copays, drug costs. Plan $15,000-20,000/year healthcare expenses. This is 25-30% of typical retiree budget.
Example:
Example: Budget $70,000/year retirement income. Healthcare $18,000 = $52,000 for everything else. Or need $88,000 total to have $70,000 for non-healthcare
Expert Tips & Strategies
Start Saving Immediately - Time is Most Valuable Asset
Starting at 25 vs 35 means needing 40% less monthly savings for same retirement outcome. A 25-year-old saving $400/month has more at 65 than 35-year-old saving $800/month. Every year delayed requires 10-15% more monthly savings to catch up.
Save 15% of Income as Default Target
Financial planners recommend 10-15% minimum including employer match. Starting career: 10% okay. Mid-career: 15%. Late start/behind: 20-25%. On $70,000, 15% = $875/month. This typically provides comfortable retirement maintaining lifestyle.
Maximize Tax-Advantaged Account Contributions
Max 401k ($23,000/year), IRA ($6,500), HSA ($4,150) before taxable accounts. Tax savings + employer match + avoiding capital gains tax multiplies wealth building. In 24% bracket, $23,000 401k contribution costs only $17,480 take-home.
Plan to Work 2-3 Years Past Original Target
Each year working later = 3 benefits: one more year saving, one more year compound growth, one less year withdrawing. Working 65 to 68 can add $300,000-500,000 effective retirement wealth. This flexibility is valuable safety margin.
Consider Geographic Arbitrage in Retirement
Cost of living varies dramatically. $60,000 in San Francisco vs. Boise vs. Mexico provides vastly different lifestyles. Moving to lower-cost area effectively increases retirement savings by 20-40%. Many retirees relocate to stretch retirement dollars.
Create Multiple Income Streams for Retirement
Don't rely solely on savings withdrawals. Ideal retirement income: SS benefits (30-40%), retirement account withdrawals (40-50%), part-time work/side income (10-20%), rental income if possible. Multiple streams provide security and flexibility.
Reduce Debt Before Retirement
Pay off mortgage, car loans, credit cards before retiring. Being debt-free reduces required retirement income by $1,500-3,000/month. $2,000/month debt payment eliminated = need $600,000 less retirement savings (using 4% rule).
Plan for Longer Life Expectancy
Plan for 90-95 age, not 80-85. A 65-year-old has 50% chance of living to 85-90. Medical advances increasing longevity. Running out of money at 83 is catastrophic. Build extra cushion - better to leave inheritance than run out.
Common Mistakes to Avoid
Using Too Aggressive Return Assumptions
Planning with 10-12% returns sets you up for failure. Historical stock market return is 10% but retirement portfolios include bonds (lower returns).
✓ Better approach: Use 6-8% maximum. Better to save more and exceed target than save less and fall short.
Not Accounting for Healthcare Costs
Medicare isn't free - has premiums, deductibles, drug costs. Average couple needs $315,000 for healthcare over retirement.
✓ Better approach: Failing to budget $15,000-20,000/year healthcare costs means 20-30% shortfall in retirement income planning.
Ignoring Inflation Impact
$50,000/year sounds fine until you realize that's today's dollars. In 30 years at 2.
✓ Better approach: 5% inflation, you need $105,000 to buy what $50,000 buys today. Always calculate in today's dollars but understand nominal amounts will be higher.
Assuming You'll Spend Less in Retirement
Many don't reduce spending as much as expected. Healthcare, travel, hobbies, helping family often cost more than saved from eliminating work expenses and mortgage.
✓ Better approach: Plan 70-80% of pre-retirement income, not 50-60%, unless downsizing significantly.
Starting Too Late and Not Catching Up
Starting at 45 instead of 25 means needing 3-4x higher monthly contribution for same result. Many delay then never catch up.
✓ Better approach: If late start, must increase to 20-25% savings rate and/or plan to work to 70. No way around lost compound years.
Withdrawing from Retirement Accounts Early
Taking $30,000 from 401k at 40 costs you $265,000 at 65 (that money's growth). Plus 10% penalty + taxes = only get $20,000 after paying $10,000 in fees/taxes.
✓ Better approach: Protect retirement accounts - find alternative funding for current needs.
Not Increasing Contributions with Raises
Staying at 6% contribution as salary grows from $50,000 to $90,000 over career means missing opportunity. Should increase to 12-15%.
✓ Better approach: Each 1% increase when you get raise doesn't impact lifestyle but adds $100,000-200,000 to retirement.
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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.