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Retirement Calculator

Retirement savings grow with monthly contributions and compound returns, and the 4% rule estimates how much income they can support. A 35-year-old with $48,000 saved who adds $900 a month at a 6% return could have about $1.19 million at 65, enough for roughly $3,977 a month under the 4% rule.

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At age 65$1,193,147
In today's money$568,824
Monthly income at 4%$3,977

Uses the 4% withdrawal rule of thumb. Figures are before tax.

How to use the Retirement Calculator

  1. Enter your current age and the age you plan to retire.
  2. Enter what you have saved so far and how much you add each month.
  3. Enter an expected annual return.
  4. Read your projected savings at retirement and the monthly income a 4% withdrawal rate would give, with the growth curve.

Formula

Each month: balance = balance × (1 + return ÷ 12) + monthly saving · monthly income = final balance × 4% ÷ 12

Savings compound monthly until retirement age. The income figure applies the 4% rule of thumb: withdraw 4% in the first year and adjust for inflation afterwards. Figures are before tax and in future dollars.

Savings benchmarks by age

  • By 30: about 1 times your annual salary.
  • By 40: about 3 times.
  • By 50: about 6 times.
  • By 60: about 8 times.
  • By 67: about 10 times.

Order to fund savings

  • Contribute enough to get any employer match.
  • Pay off high-interest debt such as credit cards.
  • Build an emergency fund of 3 to 6 months of expenses.
  • Fill tax-advantaged accounts up to the current year's limits.

Retirement Calculator questions

How much should I save for retirement?

A common target is 10% to 15% of gross income, including any employer match, starting as early as possible. Benchmarks suggest about 1 times your salary saved by 30, 3 times by 40, 6 times by 50 and 10 times by 67. Starting later means saving a higher share.

What is the 4% rule and is it still valid?

The 4% rule says you can withdraw 4% of your savings in the first year of retirement, then adjust that amount for inflation, with a high chance the money lasts 30 years. $1 million supports about $40,000 a year. Some planners now suggest 3.5% for early or long retirements.

What rate of return should I assume?

Use a cautious figure: around 6% to 7% for a stock-heavy portfolio, 4% to 5% for a balanced one and 3% to 4% for a conservative one. Subtract expected inflation if you want results in today's money. Lower assumptions reduce the risk of a shortfall.

How much income will I need in retirement?

Many planners suggest 70% to 80% of your pre-retirement income. Work costs and retirement saving stop, but healthcare and travel often rise. If you spend $80,000 a year now, plan for roughly $56,000 to $64,000, before counting Social Security or pensions.

Should I prioritize retirement saving or paying off debt?

Do both in order: contribute enough to get any employer match first, then pay down high-interest debt above roughly 7%, then increase retirement saving. For low-rate debt such as a mortgage under 4% to 5%, long-term investing usually comes out ahead.

How does Social Security fit into my plan?

Social Security replaces about 40% of pre-retirement income for an average earner, less for high earners and more for low earners. Check your personal estimate at ssa.gov and subtract it from your income target to see how much your savings need to cover.

When can I access my 401(k) or IRA without penalty?

In the US, withdrawals are penalty-free from age 59½, or from 55 for a 401(k) if you leave that employer in or after the year you turn 55. Earlier withdrawals usually face a 10% penalty plus income tax. Roth IRA contributions, but not earnings, can be withdrawn any time.

Should I choose a traditional or Roth account?

Traditional accounts give a tax deduction now and tax withdrawals later; Roth accounts use after-tax money now and give tax-free withdrawals. Roth tends to win if you expect a higher tax rate in retirement. Holding both gives flexibility to manage taxes later.

What happens to my savings if the market crashes near retirement?

A crash just before or after retiring can do lasting damage because you may sell low to fund spending. Gradually shifting toward bonds, keeping one to two years of expenses in cash and staying flexible on spending reduce that risk.