🌴 Retirement Savings Calculator
Project your retirement savings and see if you are on track.
Our free Retirement Calculator projects how much you'll accumulate by your target retirement age based on current savings, monthly contributions, and expected investment returns — then shows whether your balance will sustain your desired retirement income.
The 4% Safe Withdrawal Rule
The widely cited "4% rule" states that you can withdraw 4% of your portfolio in year one of retirement and increase withdrawals with inflation each year without running out of money over a 30-year retirement. This means:
To spend $60,000/year: need $1,500,000
To spend $80,000/year: need $2,000,000
To spend $100,000/year: need $2,500,000
Social Security, pensions, and other income sources reduce how much you need from your portfolio.
Example — Starting at Age 30
Current savings: $25,000 | Monthly contribution: $500 | Expected return: 7% annual | Retire at 65
At 65: approximately $1.03 million
At 4% withdrawal: supports $41,200/year in retirement income
Increase contributions to $750/month: approximately $1.37 million — a $340,000 difference from just $250/month more
The Impact of Starting Age
The difference between starting at 25 vs 35 is dramatic — even with identical monthly contributions and returns:
- Start at 25, contribute $400/month until 65: approximately $1,056,000
- Start at 30, contribute $400/month until 65: approximately $735,000
- Start at 35, contribute $400/month until 65: approximately $506,000
- Start at 40, contribute $400/month until 65: approximately $341,000
Starting 10 years earlier produces more than twice the final balance with the same monthly contribution. Time is the most powerful variable in retirement planning.
Tax-Advantaged Accounts
- 401(k): Contribute pre-tax (traditional) or post-tax (Roth). 2024 limit: $23,000 ($30,500 if 50+). Many employers match contributions — always contribute enough to capture the full match, which is an immediate 50–100% return.
- IRA: Individual Retirement Account. 2024 limit: $7,000 ($8,000 if 50+). Traditional IRA = pre-tax, Roth IRA = post-tax. Income limits apply to Roth contributions.
- HSA: Health Savings Account can be used as a supplemental retirement account — triple tax advantage (pre-tax contributions, tax-free growth, tax-free withdrawals for medical expenses).
🌴 Project your retirement savings with our free Retirement Calculator.
Open Retirement Calculator →Frequently Asked Questions
What rate of return should I use?
The S&P 500 has returned approximately 10% annually (about 7% after inflation) historically. A diversified portfolio of stocks and bonds might return 6–8% depending on allocation. Use 6–7% for conservative planning to avoid overestimating your future balance.
How much should I save for retirement?
Common guidelines: Save 10–15% of gross income minimum. Aim for 25% or more for earlier retirement. At minimum, always contribute enough to capture your full employer 401(k) match — it's free money with a guaranteed 50–100% immediate return.
Is the 4% rule still valid?
The 4% rule was derived from historical US market data (the "Trinity Study"). Some financial planners now recommend 3.3–3.5% for longer retirements (30+ years) or in low-yield environments. It remains a widely used starting point but is not a guarantee. Sequence of returns risk — retiring during a market downturn — is the primary threat to its viability.