Retirement savings calculator
Project your savings at retirement and compare them with what your spending needs, with a 4% rule check.
- ๐บ๐ธ US federal & state rules
Projected savings at 67
$1,218,954
About $456,271 short of the $1,675,225 you need. Saving $407 more a month closes the gap.
- Needed at retirement
- $1,675,225
- Shortfall
- $456,271
- Savings in today's dollars
- $553,125
- Extra a month to close gap
- $407
This is an example. Enter your numbers above and press the button to see your own result.
4% rule check (today's dollars)
| Yearly gap to cover from savings | $36,000 |
|---|---|
| Savings the 4% rule suggests | $900,000 |
| 4% of your projected savings | $22,125 a year |
- An estimate, not financial advice. Returns are steady averages here, while real markets swing from year to year.
- Spending and other income are in today's dollars and rise with inflation. Withdrawals are taken at the start of each retirement year.
- The 4% rule is a rough guide from historical US market returns over about 30 years. Longer retirements usually call for a lower rate.
Show the math
| Years to retirement | 32 years (384 months) |
|---|---|
| Savings at retirement | $50,000 grown at 6% plus $800 a month = $1,218,954 |
| Yearly gap in retirement | $60,000 spending - $24,000 other income = $36,000 (today's dollars) |
| Real return in retirement | (1 + 4%) / (1 + 2.5%) - 1 = 1.46% |
| Needed in today's dollars | $36,000 a year for 25 years = $760,168 |
| Needed at retirement | $760,168 ร (1 + 2.5%)^32 = $1,675,225 |
What to do next
How it works
Your current savings and monthly contribution grow each month at the return you enter until retirement. That gives the projected balance on your retirement date.
For the need, the calculator takes your yearly spending minus Social Security and pension income, both in today's dollars. It values that gap over every year from retirement to the plan-to age using the real return (your retirement return minus inflation), then converts the total to future dollars on your retirement date.
If the projection falls short, it shows how much more a month would close the gap at your pre-retirement return.
Things to keep in mind
Taxes are not included. Withdrawals from a traditional 401(k) or IRA are taxed as income, so spending of $60,000 may need larger withdrawals. Roth withdrawals in retirement are usually tax free.
Social Security is treated as starting at retirement. If you plan to claim later, the early years will draw more from savings than shown here.
Frequently asked questions
How much do I need to retire?
Take the yearly spending your Social Security and pension will not cover, then multiply by the years you expect to be retired, adjusted for returns and inflation. With a $36,000 yearly gap, the 4% rule points to about $900,000.
What is the 4% rule?
It says you can withdraw 4% of your savings in the first year of retirement, then raise that dollar amount with inflation, and the money has historically lasted about 30 years. $1 million supports about $40,000 a year.
What return should I use?
Many planners use 5% to 7% a year before retirement for a stock-heavy mix and 3% to 5% in retirement for a more conservative mix. Lower numbers give a safer plan.
Why does the needed amount look so large?
It is in future dollars. At 2.5% inflation, $60,000 of spending today costs about $132,000 a year in 32 years. The today's-dollars line shows the same plan at current prices.