Retirement Calculator
Estimate how much you'll need to retire comfortably. Adjust your age, savings, annual contributions, and inflation expectations.
Average U.S. inflation rate over the past 100 years is approximately 3.1%
Results Summary
How to Use the Retirement Calculator
Enter your current age, planned retirement age, current savings, annual contribution, expected annual return, and inflation. You'll get an estimate of your retirement savings adjusted for inflation.
Formula Used
Where P = current savings, r = annual interest rate, t = years to retirement, PMT = annual contribution
How Much Should You Save for Retirement?
Saving for retirement doesn't need to be complex. Here are a few common rules that can help you plan smartly:
1. The 15% Rule
Many financial advisors suggest saving 15% of your gross income each year for retirement, starting as early as possible. This total includes employer contributions, such as matching 401(k) plans.
2. The 80% Rule
Plan to replace about 80% of your pre-retirement income to maintain your lifestyle after retirement. For example, if you earned $60,000 annually, you should aim for about $48,000 per year in retirement.
3. The 4% Rule
During retirement, you can typically withdraw 4% of your retirement savings per year to make your money last 30+ years. For example, to withdraw $40,000 a year, you’d need $1,000,000 saved: $40,000 ÷ 0.04 = $1,000,000
Example Retirement Savings Goals
| Annual Expenses | Expected Retirement Years | Total Savings Needed |
|---|---|---|
| $40,000 | 25 years | $1,000,000 |
| $50,000 | 30 years | $1,250,000 |
| $60,000 | 20 years | $1,200,000 |
Tips to Reach Your Retirement Goals
- Start early: More time means more compounding growth.
- Use retirement accounts: Contribute to your 401(k), IRA, or Roth IRA.
- Increase savings gradually: Every time your income increases, boost your savings rate.
Understanding Your Retirement Options
- Pensions: Employer-sponsored plans that provide monthly income post-retirement.
- 401(k): A tax-deferred retirement savings plan offered by employers in the U.S.
- IRA: Individual Retirement Accounts that offer tax advantages for personal savings.
- Other Savings Plans: Includes investments, annuities, and personal savings.
Example: What Will $50,000 Be Worth in 25 Years?
| Year | Value Without Inflation | Value With 3% Inflation |
|---|---|---|
| 10 | $81,445 | $60,415 |
| 20 | $132,665 | $73,530 |
| 25 | $169,318 | $78,914 |
Frequently Asked Questions
It depends on your lifestyle, expected expenses, and retirement duration. Many experts suggest targeting 70–80% of your pre-retirement income per year.
Yes, inflation affects the value of your savings over time. Adjusting for inflation gives a more realistic estimate.
It's never too late. Start with whatever amount you can and consider increasing your savings yearly or working a bit longer.