A retirement calculator helps you estimate how much you need to save for a comfortable retirement. Enter your current age, savings, and expected contributions below to see projected growth through compound interest, monthly retirement income based on the 4% rule, and key savings milestones along the way.
Retirement Calculator
Increasing your annual contribution by just 1% could significantly boost your retirement savings over time.
Projected Savings Growth
Milestones
| Age | Annual Contribution | Estimated Return | Total Savings |
|---|
Important Disclaimer
This calculator uses the 4% rule, a widely referenced retirement guideline suggesting you can withdraw 4% of your savings annually without running out of money over a 30-year retirement. Results are estimates based on the inputs provided and assume consistent returns. Actual market performance varies. This tool is for educational purposes only and does not constitute financial advice. Consult a qualified financial advisor for personalized retirement planning.
Frequently Asked Questions
How Much Should I Save for Retirement?
A common guideline is to aim for 10-15% of your gross income throughout your working years. By age 30, aim to have 1x your salary saved; by 40, 3x; by 50, 6x; and by 60, 8x. However, the right amount depends on your desired retirement lifestyle, expected Social Security benefits, healthcare costs, and other income sources. Use this calculator to estimate your personal target based on your unique situation.
What Is the 4% Rule for Retirement?
The 4% rule is a retirement withdrawal strategy developed by financial planner William Bengen in 1994. It states that retirees can withdraw 4% of their portfolio in the first year of retirement, then adjust that amount for inflation each subsequent year, with a high probability of not running out of money over 30 years. For example, with $1 million saved, you could withdraw $40,000 in year one. While widely used, some experts suggest adjusting this rate based on current market conditions and personal circumstances.
How Does Inflation Affect My Retirement Savings?
Inflation erodes the purchasing power of your money over time. At 3% annual inflation, $1 million today would have the purchasing power of roughly $412,000 in 30 years. This is why our calculator shows inflation-adjusted results in today's dollars, giving you a realistic picture of your future spending power. To combat inflation, invest in assets that historically outpace it, such as stocks and real estate, and account for rising healthcare costs in your retirement planning.
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