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Retirement Calculator

Plan your retirement with 4 calculation modes. Estimate how much you need to save, what you can withdraw, and how long your savings will last.

Retirement need inputs
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Total needed at retirement $823,897
Projected savings$533,829
Shortfall $290,068
Annual need$60,000
Retire at 65 with 35 years to save. Need 80% of $75,000 income ($60,000/year) for 20 years of retirement.

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How to Plan for Retirement

Retirement planning comes down to four questions this calculator answers: how much you need, how much to save each month, how much you can safely withdraw, and how long your money will last.

The Four Modes Explained

  • How much do I need? Projects your current savings forward and compares against the total nest egg needed to sustain your desired income through retirement, adjusted for inflation.
  • How much to save? Solves for the monthly contribution required to reach your target nest egg, accounting for compound growth on both existing savings and new contributions.
  • How much can I withdraw? Given your savings trajectory, calculates a sustainable monthly withdrawal that lasts your entire retirement using real (inflation-adjusted) return rates.
  • How long will it last? Simulates month-by-month depletion of your savings with rising withdrawals due to inflation. If investment returns exceed withdrawals, savings last indefinitely.

Key Retirement Planning Concepts

Compound Interest

Money invested early grows exponentially. At 7% annual return, $10,000 doubles roughly every 10 years. Starting early is far more impactful than saving more later.

Inflation and Purchasing Power

At 3% annual inflation, you will need about $2.43 in 30 years to buy what $1 buys today. Retirement plans must account for rising costs. This calculator adjusts withdrawal needs for inflation.

The 4% Rule

Research by William Bengen (1994) found that retirees who withdrew 4% of their portfolio in year one and adjusted for inflation had a very high probability of not running out of money over 30 years. This translates to needing 25x your annual expenses saved.

Retirement Savings Milestones

Fidelity suggests these benchmarks based on your annual salary:

  • Age 30: 1x annual salary saved
  • Age 40: 3x annual salary saved
  • Age 50: 6x annual salary saved
  • Age 60: 8x annual salary saved
  • Age 67: 10x annual salary saved

Social Security Considerations

Social Security replaces roughly 40% of pre-retirement income for average earners. Higher earners see a lower replacement rate. Factor Social Security into your planning, but do not rely on it entirely — benefits may be reduced in the future.

Tips for Maximizing Retirement Savings

  • Start early: Time in the market beats timing the market
  • Maximize employer match: Free money — always contribute enough to get the full match
  • Increase contributions annually: Raise savings rate by 1% each year
  • Minimize fees: Choose low-cost index funds (expense ratios under 0.20%)
  • Diversify: Spread investments across stocks, bonds, and international markets
  • Avoid early withdrawals: 10% penalty plus taxes before age 59.5

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Frequently Asked Questions

How much do I need to retire?

A common rule of thumb is 25 times your annual expenses in retirement, based on the 4% rule. Needing $60,000 a year means aiming for about $1.5 million. Social Security or a pension lowers the target, since only the gap between expenses and that income has to come from savings. Inflation and investment returns shift the exact figure.

What is the 4% rule?

The 4% rule says you can withdraw 4% of retirement savings in the first year, then raise the amount with inflation each year, and the money should last about 30 years. It is based on historical US stock and bond returns. Retiring into a market downturn is the main risk, because early losses combined with withdrawals can permanently shrink the portfolio.

What percentage of income should I save for retirement?

Financial advisors generally recommend saving 15% to 20% of gross income for retirement, counting any employer match. Starting later or retiring earlier pushes the needed rate higher. Inflation matters too: at 3% a year, a dollar today buys only about 48 cents of goods in 25 years, so savings targets must grow over time.

At what age do required minimum distributions start?

Required minimum distributions (RMDs) start at age 73 for people born from 1951 through 1959 and at 75 for those born in 1960 or later. They are mandatory yearly withdrawals from tax-deferred accounts such as a Traditional IRA or 401(k), sized by the account balance and IRS life expectancy tables. Roth IRAs are not subject to RMDs during the lifetime of the owner.