Retirement Calculator
Plan your retirement savings and see if you're on track
Your Information
Retirement Projection
How to Use This Retirement Calculator
Enter Your Current Age and Retirement Age
Input your current age and when you plan to retire. Standard retirement age is 65-67, but you may want to retire earlier or later.
Input Current Savings and Monthly Contributions
Include all retirement accounts: 401(k), IRA, Roth IRA, and any other savings. Enter what you add monthly across all accounts.
Set Expected Annual Return
Use realistic expectations: Conservative 4-5%, Moderate 6-7%, Aggressive 8-10%. Historical stock market average is about 7% after inflation.
Enter Desired Income and Social Security
Your desired annual income in retirement. Subtract expected Social Security benefits. Most people need 70-80% of pre-retirement income.
Understanding Retirement Planning
The 4% Rule is a common retirement guideline: withdraw 4% of your savings annually for a 30-year retirement. This means you need 25x your desired annual withdrawal. To generate $60,000/year, you'd need approximately $1.5 million saved.
The Power of Starting Early
A 25-year-old investing $300/month at 7% will have $1.1 million at 65. A 35-year-old investing the same needs $700/month to reach the same goal. Time is irreplaceable.
401(k) Employer Match
A 401(k) with 50% match on 6% contribution equals 100% return on that portion. Always contribute enough to get the full match before other investments.
Roth vs Traditional
Traditional: tax deduction now, taxed later. Roth: taxed now, tax-free withdrawals. Roth is often better for younger earners or if tax rates rise.
Social Security Timing
You can claim at 62-70. Each year delayed increases benefit by 8%. Waiting until 70 maximizes your benefit, but claiming earlier provides income flexibility.
Frequently Asked Questions
How much do I need to retire?
A common guideline is 25x your annual expenses (based on the 4% rule). If you need $60,000/year, aim for $1.5 million. However, your needs depend on lifestyle, healthcare, and other income sources like Social Security.
What is a realistic retirement return?
Historically, stocks returned about 10% annually (7% after inflation). Conservative investors might use 5-6%, aggressive investors 8-10%. Most planners recommend 6-7% as a balanced assumption for retirement planning.
Should I invest in bonds as I approach retirement?
Many follow a "target-date" approach, gradually shifting from stocks to bonds as retirement approaches. A common rule is "120 minus your age" in stocks. At 60, you'd have 60% stocks and 40% bonds. This reduces volatility but may lower long-term returns.