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Retirement Calculator

Plan your retirement. Calculate projected savings at retirement age based on current savings, monthly contributions, and investment returns.

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🌴Retirement Calculator

How Much Do You Need to Retire?

The most widely used rule is the 4% Rule: at retirement, you can safely withdraw 4% of your portfolio per year and it should last 30+ years. To retire on $5,000/month ($60,000/year), you need 25× that amount: $1,500,000 saved at retirement.

The power of starting early is staggering. Investing $500/month at age 25 with a 7% return yields approximately $1.37 million by age 65. Starting at 35 with the same contribution yields only $609,000 — less than half, despite contributing for only 10 fewer years.

Tax-advantaged accounts are essential: a 401(k) lets you contribute up to $23,500/year (2025), often with employer matching. A traditional IRA contributes another $7,000/year. Contributions reduce taxable income now; withdrawals are taxed in retirement (or tax-free with Roth accounts).

Frequently Asked Questions

What is the 4% rule?+
The 4% rule states that retirees can withdraw 4% of their portfolio in the first year of retirement, then adjust for inflation each year, and their money should last at least 30 years with high probability. It is based on historical US stock and bond returns. To find your target: multiply desired annual income by 25.
How much should I save for retirement?+
A common target is 15% of gross income including employer match, starting in your 20s. By age 67, you should ideally have 10–12× your final salary saved. Fidelity's benchmarks: 1× by 30, 3× by 40, 6× by 50, 8× by 60, 10× by 67.
What is a 401(k) match?+
Many employers match employee 401(k) contributions up to a certain percentage of salary — for example, 50% match on the first 6% contributed. This is free money. Always contribute at least enough to capture the full employer match — it is an immediate 50–100% return on your money.
What is the difference between a traditional and Roth IRA?+
A traditional IRA offers a tax deduction now; withdrawals in retirement are taxed as income. A Roth IRA uses after-tax money; growth and qualified withdrawals in retirement are completely tax-free. Roth is generally better if you expect to be in a higher tax bracket in retirement.

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How Retirement Projections Work

Retirement calculators project current savings plus future contributions forward at an assumed return, then test the resulting nest egg against your expected spending. A common yardstick is the 4% rule: withdrawing 4% of the starting balance annually, inflation-adjusted, has historically lasted 30+ years.

Worked example

A 35-year-old with $50,000 saved, contributing $500 monthly at 7% average return, reaches about $817,000 by 65. The 4% rule suggests roughly $32,700 of annual withdrawals on top of any pension or social security.

Frequently asked questions

What return should I assume? Long-run diversified equity returns have averaged 7–10% nominal; conservative planning uses 5–7% and subtracts ~2–3% inflation for real terms.

Is the 4% rule guaranteed? No — it is a historical heuristic. Sequence-of-returns risk, longer lifespans and fees all matter; revisit the plan regularly.