Retirement calculator — plan savings and withdrawal income
A retirement calculatoranswers one question: if you keep saving at today's pace, what might your nest egg look like at your target age? This free planner combines current savings, monthly contributions, and an expected return into a projected balance, then shows an inflation-adjusted figure and estimated monthly income using the widely cited 4% rule. Numbers are illustrative—markets vary, taxes matter, and fees reduce growth—but the model gives you a baseline before talking to a fiduciary advisor.
How the projection works
Years to retirement equal retirement age minus current age. Future value uses compound growth on your existing balance plus end-of-month contributions. With monthly rate r (from annual return ÷ 12) and n months until retirement, the formula is: FV = currentSavings × (1 + r)^n + contribution × ((1 + r)^n − 1) / r. Inflation adjustment divides the nominal total by (1 + inflation)^yearsto express purchasing power in today's dollars.
What is the 4% retirement rule?
The 4% rule comes from research on U.S. historical stock/bond portfolios: withdraw 4% of the portfolio in year one of retirement, then increase that dollar amount each year for inflation. On a $1,000,000 balance, year-one spending is about $40,000 ($3,333/month before taxes). The rule is a starting point, not a promise—bad markets early in retirement (sequence-of-returns risk), longer lifespans, and low bond yields may require a lower rate or flexible spending.
How much do I need to retire?
A common shortcut is the 25× rule: multiply desired annual spending by 25 (the inverse of 4%). If you need $60,000/year from investments, aim for roughly $1.5 million before Social Security or pensions. High-cost cities, healthcare, and debt push targets higher; paid-off homes and part-time work lower them. Use this calculator to see whether your current savings path approaches your personal target.
Average retirement savings by age
Federal Reserve and industry surveys show wide gaps between median balances and planner benchmarks. Medians lag because many households save little in their 30s. The table blends approximate medians with common "salary multiple" goals used by financial planners.
| Age | Median savings (approx.) | Common benchmark |
|---|---|---|
| 25 | $11,000 | 0.5× annual salary |
| 30 | $18,000 | 1× annual salary |
| 35 | $35,000 | 2× annual salary |
| 40 | $55,000 | 3× annual salary |
| 45 | $95,000 | 4× annual salary |
| 50 | $135,000 | 6× annual salary |
| 55 | $185,000 | 7× annual salary |
| 60 | $230,000 | 8× annual salary |
| 65 | $280,000 | 10× annual salary |
Traditional IRA vs Roth IRA (brief)
A Traditional IRA often gives a tax deduction on contributions; withdrawals in retirement are taxed as ordinary income. A Roth IRA uses after-tax dollars but qualified withdrawals are tax-free. Younger savers in lower brackets often favor Roth; high earners near peak income may favor Traditional or workplace 401(k) pre-tax deferrals. Income limits and employer plans affect eligibility—this page does not model taxes; pair projections with a tax professional.
Can I retire at 55?
Retiring at 55 means funding roughly a decade before Medicare and, for many Americans, before penalty-free 401(k) withdrawals at 59½. You need a larger portfolio because spending may last 35–40 years, and early-sequence market losses hurt more. Bridge strategies include taxable brokerage accounts, Roth conversion ladders, part-time work, or spouse health coverage. Run this calculator with retirement age set to 55 and stress-test lower returns (5–6%) to see whether contributions must rise.
How much should I have saved at 40?
Planners often cite 3× annual salary by 40 as a progress marker. If you earn $90,000, that implies about $270,000 across retirement and brokerage accounts—far above median balances in federal surveys. Falling short is common; increasing monthly contributions by even $200–$400 compounds meaningfully over 25 years. Catch-up contributions after 50 (extra IRA and 401(k) limits) help those who started late.
What is a good monthly retirement income?
There is no single answer—cost of living and debt matter. A useful frame is 70–80% of pre-retirement gross income from all sources (portfolio, Social Security, pension, rental). For $100,000 pre-tax earnings, that is roughly $5,800–$6,700/monthbefore taxes. Subtract expected Social Security from the gap your portfolio must fill. This tool's 4% monthly estimate shows only the investment slice; add other income mentally.
Social Security, pensions, and real returns
Social Security replaces a portion of pre-retirement income; claiming at 62 reduces monthly benefits versus waiting until full retirement age or 70. Pensions are increasingly rare in private industry but still matter for public-sector workers. Neither is modeled here— treat calculator output as portfolio-only. Expected return defaults to 7%nominal; inflation default 3% implies roughly 4% real. Long bull markets can exceed that; prolonged stagnation can undershoot. Re-run projections every few years.
Workplace plans: 401(k) and HSA
Employer 401(k) plans offer high annual limits and often a company match. Pre-tax contributions reduce current taxable income; Roth 401(k) options build tax-free buckets. Health savings accounts (HSAs) triple-tax-advantaged when used for medical expenses in retirement. Enter your combined balance in current savings and your total monthly deferral (including match) in monthly contribution for a simplified whole-portfolio view.
Tips to improve your projection
- Increase 401(k) contributions to capture full employer match—that is immediate return.
- Delay retirement one or two years to shorten withdrawal years and add compounding.
- Hold low-cost diversified funds; a 1% fee drag over decades is enormous.
- Plan healthcare from retirement to Medicare; COBRA and ACA premiums surprise many early retirees.
Pair this tool with our compound interest calculator for year-by-year growth detail, or the age calculator for exact years until a target date.
Educational only—not investment, tax, or legal advice.