Retirement Calculator
Plan for your retirement and calculate how much you need to save to achieve your financial goals.
Retirement Planning
Retirement Savings Phases:
Accumulation Phase
The period during your working years when you're saving and investing for retirement. Your goal is to build a nest egg that will provide income during retirement.
Withdrawal Phase
The retirement period when you're drawing income from your investments and other sources to fund your living expenses.
Common Retirement Rules of Thumb:
The 4% Rule
A guideline suggesting you can withdraw 4% of your retirement portfolio during the first year of retirement, then adjust that amount for inflation each year, with a high probability of not running out of money for at least 30 years.
The 80% Rule
A general guideline that you'll need approximately 80% of your pre-retirement income to maintain a similar lifestyle in retirement.
The 15% Rule
A recommendation to save at least 15% of your gross income (including employer matches) throughout your working years for retirement.
Retirement Income Sources
- Personal Savings & Investments (401(k), IRA, taxable accounts)
- Social Security (dependent on your earnings history)
- Pensions (if available from your employer)
- Part-time work or consulting during retirement
- Rental income or other passive income streams
Calculate Your Retirement Needs
Current Information
$
$
$
%
How much your contributions increase each year
Retirement Goals
%
Typically 70-85% of pre-retirement income
$
In today's dollars (will be adjusted for inflation)
$
Estimated annual Social Security benefit
$
Pension, rental income, part-time work, etc.
Investment Settings
%
Typical range: 5-9%
%
Typically lower than pre-retirement (more conservative)
%
Historical average: 2-3%
Retirement Analysis
On Track
Years Until Retirement:
0
Retiring at age 65 in 2025
Retirement Duration:
0 years
From age 65 to 90
Projected Savings at Retirement:
$0.00
Annual Income Needed in Retirement:
$0.00
Adjusted for inflation
Total Needed for Retirement:
$0.00
Nest egg needed to support income needs
Shortfall:
No shortfall
On Track: You're on track to meet your retirement goals with your current savings plan.
Retirement Savings Projection
Retirement Planning Strategies
Retirement Savings Accounts
| Account Type | Tax Advantage | 2023 Contribution Limit |
|---|---|---|
| Traditional 401(k) | Pre-tax contributions, tax-deferred growth | $22,500 ($30,000 if 50+) |
| Roth 401(k) | After-tax contributions, tax-free growth and withdrawals | $22,500 ($30,000 if 50+) |
| Traditional IRA | Potentially deductible contributions, tax-deferred growth | $6,500 ($7,500 if 50+) |
| Roth IRA | After-tax contributions, tax-free growth and withdrawals | $6,500 ($7,500 if 50+) |
Catching Up on Retirement Savings
- Maximize tax-advantaged accounts: Contribute the maximum to your 401(k), IRA, or other available retirement accounts.
- Take advantage of catch-up contributions: If you're 50 or older, you can contribute extra to 401(k)s and IRAs.
- Consider working longer: Even one or two extra years of work can significantly boost your retirement security.
- Reduce current expenses: Cut discretionary spending to increase your savings rate.
- Delay Social Security: Benefits increase approximately 8% for each year you delay claiming, up to age 70.
- Develop additional income streams: Rental properties, part-time work, consulting, or other passive income sources can supplement retirement income.
Asset Allocation by Age
A common rule of thumb is to subtract your age from 110 or 120 to determine your stock allocation, with the remainder in bonds and cash.
| Age Range | Suggested Allocation | Focus |
|---|---|---|
| 20s - 30s | 80-90% stocks, 10-20% bonds | Growth, can tolerate volatility |
| 40s - 50s | 60-80% stocks, 20-40% bonds | Growth and capital preservation |
| 60s - 70s | 40-60% stocks, 40-60% bonds | Income and capital preservation |
| 80+ | 20-40% stocks, 60-80% bonds/cash | Preservation and income |
Common Retirement Mistakes to Avoid
- Starting too late: The power of compound interest means that early savings have a much bigger impact.
- Not saving enough: Many people underestimate how much they'll need in retirement.
- Neglecting healthcare costs: Medical expenses can be a major cost in retirement, especially long-term care.
- Taking Social Security too early: Benefits increase significantly if you delay claiming.
- Withdrawing too much: Withdrawing too aggressively can deplete your nest egg prematurely.
- Ignoring inflation: Even modest inflation significantly erodes purchasing power over time.
- Poor asset allocation: Being too conservative when young or too aggressive when near retirement.