Retirement Calculator

Plan your financial future with our comprehensive retirement planning tools. Calculate how much you need to save, when you can retire, and create a personalized retirement strategy.

How much do you need to retire?

Calculate the total savings needed for retirement based on your current situation and goals. This calculator accounts for inflation, investment returns, and Social Security benefits.

Current Age Years
Retirement Age Years
Life Expectancy Years
Current Annual Income Before tax
Income Replacement Rate % of income needed
80%
Current Retirement Savings Total saved
Expected Annual Return Investment growth
6%
Expected Inflation Rate Annual average
2.5%
Social Security Benefits Monthly estimate
Monthly Contributions Current savings rate
Annual Contribution Increase % yearly increase

Your Retirement Plan Summary

Total Savings Needed at Retirement
$1,600,000
To maintain your lifestyle until age 90
Monthly Savings Required
$1,258
To reach your retirement goal
Annual Retirement Income
$64,000
After inflation adjustment
Years Until Retirement
30
Starting at age 35
4% Withdrawal Rule

Withdraw no more than 4% of your retirement savings annually to ensure your money lasts throughout retirement. This rule has a 95% success rate for 30-year retirements.

Healthcare Considerations

Retirees spend an average of $6,000+ annually on healthcare. Factor in Medicare premiums, supplemental insurance, and out-of-pocket expenses in your retirement plan.

Start Early Advantage

Starting to save at age 25 instead of 35 can double your retirement savings due to compound interest. Time in the market is more important than timing the market.

Personalized Recommendations

  • Based on your inputs, you need to save $1,258 monthly to reach your $1.6M retirement goal. Consider increasing your 401(k) contributions to match.
  • Your Social Security benefits will cover approximately 28% of your retirement income needs. Consider delaying benefits to age 70 for higher payments.
  • You have 30 years until retirement. Focus on growth investments (80-90% stocks) now, shifting to more conservative allocations as you approach retirement.
  • Consider opening a Roth IRA for tax-free withdrawals in retirement, especially if you expect to be in a higher tax bracket later.

How to Save for Retirement?

Calculate different savings strategies and compare investment options to reach your retirement goals.

Desired Retirement Savings Target amount
Years Until Retirement Time horizon
Current Savings Already saved
Expected Annual Return Investment growth
7%
Savings Strategy Approach
Initial Contribution Monthly/Annual
Annual Increase % increase yearly
Employer Match % of contribution

Your Savings Strategy

Required Monthly Savings
$873
To reach your $1M goal
Total Contributions
$314,280
Your total out-of-pocket
Investment Growth
$635,720
From compound interest
Years to Goal
30
At current savings rate
Employer Match - Free Money

If your employer offers a 50% match on contributions up to 6% of salary, contribute at least enough to get the full match. This is a 50% immediate return on investment.

Tax-Advantaged Accounts

Maximize contributions to 401(k)s and IRAs first. For 2024, you can contribute $22,500 to 401(k)s and $6,500 to IRAs ($7,500 if 50+).

Automate Your Savings

Setting up automatic contributions increases success rates by 85%. Start with what you can afford, even if it's just 1% of income, and increase gradually.

Recommended Actions

  • To reach $1M in 30 years, save $873 monthly. Consider increasing your 401(k) contribution by 1% each year until you max it out.
  • Your employer match could add $4,500 annually if you contribute enough. This reduces your required savings by 37%.
  • 68% of your final balance will come from investment growth. Focus on low-cost index funds with expense ratios under 0.1%.
  • If you can't save enough now, aim to increase contributions with each raise or bonus. Even $50 more per month reduces time to goal by 2 years.

Safe Withdrawal Strategy

Determine a sustainable withdrawal rate from your retirement savings using various methodologies.

Retirement Savings Balance Total at retirement
Annual Withdrawal Rate % of balance
4%
Annual Investment Return During retirement
5%
Annual Inflation Rate Cost of living increase
2.5%
Withdrawal Strategy Method
Retirement Duration Years in retirement
Required Annual Income From portfolio
Social Security/Other Income Annual amount

Safe Withdrawal Analysis

Initial Annual Withdrawal
$40,000
4% of $1M portfolio
Success Probability
95%
For 30-year retirement
Portfolio at Age 95
$1,200,000
With 5% returns
Max Safe Withdrawal
$46,000
With 95% confidence
The 4% Rule

The 4% rule suggests withdrawing 4% of your portfolio in the first year, then adjusting for inflation. Historical analysis shows 95% success rate for 30-year retirements.

Sequence of Returns Risk

Poor market returns early in retirement can significantly impact portfolio longevity. Consider keeping 2-3 years of expenses in cash/cash equivalents.

Dynamic Withdrawals

Flexible withdrawal strategies (spending less after bad market years) can increase success rates to 99% while allowing higher initial withdrawals.

Withdrawal Strategy Recommendations

  • With a $1M portfolio, start with $40,000 annual withdrawals (4%). Adjust annually for inflation of 2.5%.
  • Keep 1-2 years of expenses in a high-yield savings account to avoid selling investments during market downturns.
  • Consider a bond tent strategy: increase bond allocation to 60% at retirement, then gradually reduce to 40% over 10 years.
  • If market drops 20%+, reduce withdrawals by 10% for that year. This small adjustment increases success probability dramatically.

How Long Will Your Money Last?

Calculate how long your retirement savings will last based on different withdrawal rates and market conditions.

Current Retirement Savings Total portfolio value
Monthly Withdrawal Amount Current spending
Annual Investment Return During retirement
5%
Annual Inflation Rate Cost of living increase
2.5%
Age When Withdrawals Start Retirement age
Annual Withdrawal Increase % increase yearly
Additional Income Sources Monthly amount
Monte Carlo Simulations Scenario count

Portfolio Longevity Analysis

Years Until Depletion
28
Median projection
95% Success Age
88
Money lasts until age
Annual Withdrawal Rate
4.8%
Of initial portfolio
Success Probability
82%
For 30-year retirement
Monte Carlo Simulation

This analysis runs 1,000+ market scenarios based on historical returns and volatility to give you a probability-based view of portfolio longevity.

Longevity Risk

25% of 65-year-olds will live past 90, and 10% past 95. Ensure your portfolio accounts for potentially longer retirement than average.

Flexibility Extends Portfolio

Reducing withdrawals by 10% after bad market years can extend portfolio life by 5-10 years and increase success rates significantly.

Longevity Recommendations

  • Your $750,000 portfolio has an 82% chance of lasting 30+ years with $3,000 monthly withdrawals. To increase to 95%, reduce withdrawals to $2,500/month.
  • Consider annuitizing 20-30% of your portfolio at age 75-80 to create guaranteed lifetime income and hedge against longevity risk.
  • Your 4.8% withdrawal rate is above the recommended 4%. If markets decline early in retirement, be prepared to reduce spending temporarily.
  • Explore a "bucket strategy": keep 2 years in cash, 3-8 years in bonds, and the remainder in stocks for growth. This reduces sequence risk.