Retirement Calculator

How much money do I need to retire?

A common guideline is the 4% rule: multiply your desired annual retirement spending by 25. For example, if you need 40,000 per year, you need about 1,000,000 saved. However, the exact amount depends on your retirement age, life expectancy, investment returns, inflation, and any additional income sources like Social Security or pensions. This calculator factors in all these variables to give you a personalized estimate.

What is the 4% rule for retirement?

The 4% rule suggests you can safely withdraw 4% of your retirement savings each year without running out of money over a 30-year retirement. For example, with 1,000,000 saved, you could withdraw 40,000 per year. This rule was based on historical stock and bond returns and assumes a balanced portfolio. While widely used as a starting point, some financial experts suggest using 3.5% for more conservative planning or adjusting based on market conditions.

When can I retire?

When you can retire depends on how much you have saved, your monthly contributions, expected investment returns, and how much you plan to spend in retirement. This calculator estimates the age at which your savings will be sufficient to cover your retirement expenses through your expected lifespan. Key factors include your savings rate, employer contributions, and whether you have additional income sources like Social Security.

How does inflation affect my retirement savings?

Inflation reduces the purchasing power of your money over time. At a 3% annual inflation rate, 100 today will only buy about 41 worth of goods in 30 years. This calculator adjusts all future values for inflation, showing you both nominal and real (inflation-adjusted) projections. This is why it is critical to invest in assets that historically outpace inflation, such as stocks and real estate.

What rate of return should I use for retirement planning?

A common assumption is 6-7% annual return before retirement (reflecting a diversified stock portfolio after adjusting for fees) and 4-5% during retirement (reflecting a more conservative mix of stocks and bonds). The historical average annual return of the S&P 500 is about 10% before inflation adjustment. This calculator lets you set different rates for the accumulation and withdrawal phases of retirement.

How much should I save for retirement each month?

Financial experts generally recommend saving 10-15% of your pre-tax income for retirement. If you start at age 25, saving 10% is often sufficient. Starting at 35 may require 15-20%. The earlier you start, the more compound interest works in your favor. This calculator shows you exactly how different monthly contribution amounts affect your retirement outcome.