Retirement Calculator
Plan your retirement and see if you are on track. Calculate how much you need to save, how your investments will grow, and when you can retire comfortably.
How Much Do You Need to Retire?
The widely-cited \"4% Rule\" suggests you need savings equal to 25 times your annual expenses. If you spend $50,000 per year in retirement, you would need approximately $1.25 million saved. Our calculator helps you see if you are on track to reach this goal.
Key Retirement Planning Numbers
- Retirement age — The earlier you retire, the more you need saved
- Monthly savings rate — Aim for 15-20% of your income
- Expected return — Historically, the S&P 500 averages about 10% annually before inflation
- Withdrawal rate — The 4% rule suggests withdrawing 4% of savings per year in retirement
Frequently Asked Questions
How much do I need to retire?
A common rule is to save 25× your annual expenses (based on the 4% safe withdrawal rate). If you spend $50,000/year, you need ~$1.25 million. Adjust based on your expected retirement lifestyle, healthcare costs, and Social Security benefits.
How much should I contribute to my 401(k)?
Contribute at least enough to get your full employer match (it's free money!). After that, max out a Roth IRA ($7,000/year in 2024). Then maximize 401(k) ($23,000/year limit). Aim to save 15-20% of your income total.
What is the 4% rule?
The 4% rule suggests you can withdraw 4% of your portfolio in year one of retirement, then adjust for inflation. This historically gave retirees a 30-year fund. Many experts now suggest 3.3-3.5% for greater safety given longer lifespans.
When should I start saving for retirement?
Start as early as possible! Starting at 25 vs 35 to reach $1M by 65: starting at 25 requires ~$300/month; starting at 35 requires ~$700/month. Time in the market beats timing the market.
What about Social Security?
Social Security replaces about 40% of pre-retirement income for average earners. The optimal claiming age depends on your health, financial needs, and spouse's benefits. Claiming at 70 maximizes benefits (8% increase/year after full retirement age).