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Retirement Calculator

Plan your retirement with 4 calculation modes. Estimate how much you need to save, what you can withdraw, and how long your savings will last.

Retirement need inputs

Total needed at retirement

$823,897

Projected Savings

$533,829

Shortfall

$290,068

Annual Need

$60,000

Retire at 65 with 35 years to save. Need 80% of $75,000 income ($60,000/year) for 20 years of retirement.

How to Plan for Retirement

Retirement planning comes down to four questions this calculator answers: how much you need, how much to save each month, how much you can safely withdraw, and how long your money will last.

The Four Modes Explained

  • How much do I need? Projects your current savings forward and compares against the total nest egg needed to sustain your desired income through retirement, adjusted for inflation.
  • How much to save? Solves for the monthly contribution required to reach your target nest egg, accounting for compound growth on both existing savings and new contributions.
  • How much can I withdraw? Given your savings trajectory, calculates a sustainable monthly withdrawal that lasts your entire retirement using real (inflation-adjusted) return rates.
  • How long will it last? Simulates month-by-month depletion of your savings with rising withdrawals due to inflation. If investment returns exceed withdrawals, savings last indefinitely.

Key Retirement Planning Concepts

Compound Interest

Money invested early grows exponentially. At 7% annual return, $10,000 doubles roughly every 10 years. Starting early is far more impactful than saving more later.

Inflation and Purchasing Power

At 3% annual inflation, you will need about $2.43 in 30 years to buy what $1 buys today. Retirement plans must account for rising costs. This calculator adjusts withdrawal needs for inflation.

The 4% Rule

Research by William Bengen (1994) found that retirees who withdrew 4% of their portfolio in year one and adjusted for inflation had a very high probability of not running out of money over 30 years. This translates to needing 25x your annual expenses saved.

Retirement Savings Milestones

Fidelity suggests these benchmarks based on your annual salary:

  • Age 30: 1x annual salary saved
  • Age 40: 3x annual salary saved
  • Age 50: 6x annual salary saved
  • Age 60: 8x annual salary saved
  • Age 67: 10x annual salary saved

Social Security Considerations

Social Security replaces roughly 40% of pre-retirement income for average earners. Higher earners see a lower replacement rate. Factor Social Security into your planning, but do not rely on it entirely — benefits may be reduced in the future.

Tips for Maximizing Retirement Savings

  • Start early: Time in the market beats timing the market
  • Maximize employer match: Free money — always contribute enough to get the full match
  • Increase contributions annually: Raise savings rate by 1% each year
  • Minimize fees: Choose low-cost index funds (expense ratios under 0.20%)
  • Diversify: Spread investments across stocks, bonds, and international markets
  • Avoid early withdrawals: 10% penalty plus taxes before age 59.5

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Frequently Asked Questions

How much do I need to retire?

A common rule of thumb is 25x your annual expenses (the 4% rule). For example, if you need $60,000/year in retirement, aim for $1.5 million. This calculator uses more precise formulas accounting for inflation and investment returns.

What is the 4% rule?

The 4% rule says you can withdraw 4% of your retirement savings in year one, then adjust for inflation each year, and your money should last 30 years. It is based on historical US stock/bond returns.

What investment return should I assume?

Historically, a diversified stock portfolio returns about 10% nominal (7% after inflation). A balanced stock/bond portfolio returns about 7% nominal (4% real). Be conservative in your estimates.

How does inflation affect retirement savings?

Inflation erodes purchasing power over time. At 3% inflation, $1 today is worth about $0.48 in 25 years. This calculator adjusts withdrawals for inflation to maintain your standard of living.

When should I start saving for retirement?

As early as possible. Thanks to compound interest, someone who starts saving $300/month at 25 will have more at 65 than someone who saves $600/month starting at 35, assuming the same return.

What percentage of income should I save?

Financial advisors generally recommend saving 15-20% of gross income for retirement, including any employer match. The exact amount depends on your age, current savings, and retirement goals.