Retirement Calculator

Calculate how much you need to save for retirement and estimate your future retirement income

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years

Enter your current age

years old
$

Total in 401(k), IRA, and other retirement accounts

$
/month

Amount you plan to save each month

%

Historical stock market average is ~7% after inflation

Your Retirement Nest Egg

in years at age

Estimated Monthly Income

/month

Based on 4% safe withdrawal rate

Years Until Retirement

Time to grow savings

Total Contributions

Your money invested

Investment Growth

Compound interest earned

Savings Breakdown

Your Contributions

(%)

Investment Growth

(%)

Retirement Summary

Current Age years old
Retirement Age years old
Years Until Retirement years
Expected Annual Return %
Projected Nest Egg
Monthly Retirement Income
Annual Retirement Income

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About Retirement Calculator

What is a Retirement Calculator?

A retirement calculator helps you estimate how much money you'll need to save for a comfortable retirement. By entering your current age, retirement age, savings, and expected expenses, you can see whether you're on track to meet your retirement goals and how much you need to save each month.

How to Use This Calculator

  1. Enter Your Current Age: Input your current age
  2. Set Retirement Age: Choose when you plan to retire (typically 62-70)
  3. Enter Current Savings: Input your current retirement savings balance
  4. Set Monthly Contribution: Enter how much you save for retirement each month
  5. Adjust Expected Return: Set your expected annual investment return
  6. Review Results: See your projected retirement savings and monthly retirement income

Understanding Your Results

Projected Nest Egg

This is the estimated total amount you'll have saved by your retirement age. It includes your current savings, future contributions, and compound growth.

Monthly Retirement Income

Based on the 4% withdrawal rule, this is the estimated monthly income you can safely withdraw from your retirement savings without running out of money.

Years Until Retirement

The number of years you have to save and grow your retirement fund.

Total Contributions

The sum of all the money you'll personally contribute to your retirement savings from now until retirement.

The Formula Behind the Calculation

Future Value Formula: FV = PV(1+r)^n + PMT × [((1+r)^n - 1) / r]

Where:

  • FV = Future Value (nest egg at retirement)
  • PV = Present Value (current savings)
  • r = Monthly interest rate (annual return ÷ 12)
  • n = Number of months until retirement
  • PMT = Monthly contribution

4% Rule for Withdrawal:

  • A widely-accepted guideline suggests withdrawing 4% of your portfolio in the first year of retirement
  • This provides sustainable income for approximately 30 years

Source: The 4% rule was established by financial planner William Bengen in 1994, based on historical market data.

Retirement Planning Strategies

Start Early

The power of compound interest means that starting early can make a huge difference. Even small contributions in your 20s can grow significantly by retirement.

Maximize Employer Match

If your employer offers a 401(k) match, contribute at least enough to get the full match—it's essentially free money.

Diversify Investments

A mix of stocks, bonds, and other assets can help balance risk and return over your working years.

Increase Contributions Over Time

As your income grows, try to increase your retirement contributions proportionally.

Frequently Asked Questions

How much do I need to retire?

A common rule of thumb is to save 10-12 times your final salary. However, your needs depend on your lifestyle, health, and retirement goals.

What's a good retirement savings rate?

Financial advisors typically recommend saving 10-15% of your income for retirement, including any employer match.

What annual return should I expect?

Historically, a diversified portfolio has returned 6-8% annually after inflation. This calculator defaults to 7%, but you can adjust based on your investment strategy.

When can I retire?

You can access Social Security benefits as early as 62, but waiting until 67 (full retirement age) or 70 maximizes your benefits. 401(k) and IRA withdrawals are penalty-free at 59½.

What about Social Security?

This calculator focuses on personal savings. Social Security may provide additional income in retirement, but benefits vary based on your earnings history.

Important Considerations

  • Inflation: This calculator shows nominal values. Consider that future dollars will have less purchasing power.
  • Healthcare Costs: Medical expenses often increase in retirement; factor this into your planning.
  • Market Volatility: Investment returns are not guaranteed and will fluctuate year to year.
  • Tax Implications: Withdrawals from traditional 401(k) and IRA accounts are taxable income.

Disclaimer: This calculator provides estimates for educational purposes only. Actual investment returns will vary. Consult with a qualified financial advisor for personalized retirement planning advice.

Retirement Planning Tips

💡 Maximize Your Savings

  • • Contribute enough to get full employer match
  • • Increase contributions with each pay raise
  • • Consider catch-up contributions after age 50

⚠️ Important Considerations

  • • Plan for healthcare costs in retirement
  • • Consider inflation's impact on purchasing power
  • • Don't forget about Social Security benefits