Retirement Calculator – Plan Your Future
Calculate how much you need to save for retirement and estimate your retirement income.
How Much Do You Need to Retire?
The most widely cited rule is the 4% rule: you can withdraw 4% of your portfolio per year in retirement without running out of money for 30 years. This means you need 25× your annual expenses saved (1 / 4% = 25).
If you need $50,000/year in retirement, you need $1,250,000. If you need $80,000/year, you need $2,000,000. Adjust for any pension or Social Security income you will receive — only count the gap you need to fill from savings.
The Impact of Starting Early
The single most powerful retirement lever is time. Starting at 25 vs 35 with the same monthly contribution at 7% return produces dramatically different results by age 65: starting at 25 gives you 40 years of compounding; starting at 35 gives you 30. The 10-year difference roughly doubles the final portfolio value.
Contributing the maximum to tax-advantaged accounts (401k, IRA, Roth IRA, pension) should always be the first priority — the tax savings alone are significant.
Key Retirement Planning Variables
Savings rate: Aim for 15–20% of gross income including employer match. Expected return: 6–7% real return (after inflation) for a balanced portfolio. Retirement age: Each year earlier requires significantly more savings. Withdrawal rate: The 4% rule assumes 30 years of retirement — if you retire at 55, consider 3.5% to be safe. Inflation: Your expenses will roughly double every 24 years at 3% inflation — account for this.
Frequently Asked Questions
What is the 4% rule?
The 4% rule (from the 1994 Trinity Study) states that withdrawing 4% of your portfolio in year 1 and adjusting for inflation each subsequent year has historically lasted 30+ years in almost all market scenarios. It is a useful starting point, not a guarantee.
At what age should I start saving for retirement?
As soon as possible. Even $50/month at age 22 grows to significantly more than $500/month starting at age 40. The best time to start is now; the second best time is tomorrow.
Should I pay off debt before investing for retirement?
If your employer offers a 401k match, always contribute enough to get the full match first — it is a guaranteed 50–100% return. Then pay off high-interest debt (>7% APR). Then maximize retirement contributions. Then pay off low-interest debt.