Retirement Savings Calculator

How Much Do You Need to Retire?

The most widely used rule is the 4% rule: you can safely withdraw 4% of your portfolio per year, adjusting for inflation, and the money should last 30+ years. That means your target nest egg is 25× your annual withdrawals from savings. If you need $60,000/year from your portfolio, you need $1.5 million. This calculator computes that target automatically and compares it to your projected balance.

Social Security significantly reduces how much you need from savings. A retiree needing $5,000/month who receives $1,800 in SS only needs $3,200/month from savings — requiring a nest egg of about $960,000 instead of $1.5 million.

Are You On Track?

Common benchmarks by age (Fidelity guidelines): 1× salary by 30, 3× by 40, 6× by 50, 8× by 60, 10× by 67. These are rough guides — the calculator gives you a precise answer based on your specific situation, contribution rate, and target income.

The two biggest levers you have: time (start earlier, not later) and contribution rate. Increasing contributions by $200/month in your 30s has more than twice the impact of the same increase in your 50s, thanks to compound growth.

Frequently Asked Questions

• What is the 4% rule?
  The 4% rule says you can withdraw 4% of your portfolio in year one, then adjust each year for inflation, with a high probability of the money lasting 30 years. It's based on historical stock/bond returns. Some planners use 3.5% for more conservative planning or retirements longer than 30 years.
• How much should I contribute to retirement per month?
  A common guideline is 15% of gross income, including any employer match. If that's not possible, contribute at least enough to get the full employer match (that's an instant 50–100% return). Increase contributions by 1% per year until you reach 15%.
• What return rate should I use for retirement planning?
  For pre-retirement accumulation in a diversified stock portfolio, 6–8% nominal (or 3–5% real after inflation) is commonly used. Post-retirement, a more conservative 4–5% nominal is typical as portfolios shift toward bonds. This calculator lets you set both rates separately.

How Much Do You Need to Retire?

A common starting point for retirement planning is the 4% rule: if you withdraw about 4% of your savings in your first year of retirement and adjust for inflation thereafter, your money has historically had a strong chance of lasting 30 years. Flip that around and it gives a target: to spend $60,000 a year from savings, you'd aim for a nest egg near $1.5 million ($60,000 ÷ 0.04). This calculator works from your current savings, contributions, expected return, and retirement age to project whether you're on track for the income you want.

Worked Example

Suppose you're 35 with $80,000 saved, contributing $1,000 a month, and earning a 7% average return. By 65 that grows to roughly $1.3 million. Under the 4% rule that supports about $52,000 a year before Social Security — and adding an estimated Social Security benefit can push your total retirement income meaningfully higher. If the projection falls short of your goal, the calculator shows how raising contributions, delaying retirement a few years, or adjusting your return assumption closes the gap. Small increases early, thanks to compounding, move the needle more than large ones late.

Social Security, Drawdown, and Longevity

Retirement income usually comes from more than one source. Social Security can replace a meaningful share of pre-retirement income, and delaying your claim past full retirement age increases the monthly benefit. On the spending side, the order and pace of withdrawals — your drawdown strategy — affects how long the money lasts, especially if a market downturn hits early in retirement. Because people are living longer, planning for 30 or more years of withdrawals rather than 20 provides a safer margin. Treat any single projection as a planning guide, not a guarantee, and revisit it as your circumstances change.

• Is the 4% rule still reliable?
  It remains a widely used benchmark, but it's a guideline, not a guarantee. Market conditions, your time horizon, and your flexibility to adjust spending all affect a safe withdrawal rate. Some planners now use a slightly lower starting rate for added caution.
• When should I claim Social Security?
  Claiming at full retirement age gives your standard benefit; delaying up to age 70 increases it, while claiming early reduces it. The right choice depends on your health, other income, and how long you expect to live.
• How much should I save each month?
  It depends on your age, current savings, and goal. A common target is 15% of gross income including any employer match, but the calculator lets you test the exact contribution needed to hit your number.