What is the 4% rule for retirement?

The 4% rule suggests withdrawing 4% of your portfolio in year one of retirement, then adjusting for inflation annually. This approach historically sustained portfolios for 30+ years.

How much do I need to retire?

A common guideline is 25 times your desired annual income (based on 4% withdrawal). For $60,000 annual income, you would need approximately $1.5 million saved.

What rate of return should I assume?

Historical stock market returns average 7-10% annually before inflation. A balanced portfolio might assume 6-7%. Conservative estimates use 5-6% to account for bonds and market variations.

Should I include Social Security in retirement planning?

Social Security can supplement retirement income but amounts vary by earnings history and claiming age. Many planners treat it as a bonus rather than primary income source.

What if I have a retirement savings gap?

Options to close a gap include increasing contributions, delaying retirement, reducing expected expenses, or adjusting investment strategy. Starting early gives more time for compound growth.

At what age should I start taking Social Security?

You can claim at 62 (reduced benefits) or wait until 70 (maximum benefits). Each year of delay from 62-70 increases benefits by about 8%. Consider longevity, health, and other income sources.

How do I account for healthcare costs in retirement?

Healthcare is often the largest retirement expense. Plan for Medicare premiums, supplemental insurance, and out-of-pocket costs. Some estimate $300,000+ per couple over retirement.

Should I pay off my mortgage before retiring?

Eliminating mortgage payments reduces monthly expenses and provides security. However, if your mortgage rate is low, investing extra money may generate higher returns. Consider peace of mind too.

Retirement Calculator

Project retirement savings and income needs

Instant results•No signup•Estimates only

Quick Presets

Current Age

Retirement Age

Current Savings

Monthly Contribution

Expected Return

Desired Annual Income

Projected Retirement Savings

$1,475,835

in 35 years

Sustainable Annual Income

$59,033

Monthly Income

$4,919

Savings Gap

-$24,165

Visualization

Growth Projection

Total Value
Contributions

Final Value

$1,475,835

Total Contributed

$260,000

Earnings

+$1,215,835

Results are projections based on consistent contributions and rates.

Results are estimates for informational purposes only and do not constitute financial advice. Actual savings may vary based on interest rate changes, contribution consistency, and account terms.

How calculations work Full disclaimer

Retirement Calculator Formula

Nest Egg = Annual Income \times 25

Based on the 4% safe withdrawal rule, you need 25 times your desired annual retirement income. This rule suggests withdrawing 4% in year one, then adjusting for inflation annually, to sustain a portfolio for 30+ years.

How the Retirement Calculator Works

1Enter your current age and desired retirement age
2Input your current retirement savings balance
3Specify your monthly contribution to retirement accounts
4Set your expected annual investment return
5Enter your desired annual retirement income
6View your projected savings and any gap to your goal

Retirement Calculator Key Terms

4% Rule: A guideline suggesting you can withdraw 4% of your portfolio in year one of retirement, then adjust for inflation, with a high probability of lasting 30 years.
Nest Egg: The total accumulated retirement savings needed to fund your retirement through sustainable withdrawals.
Retirement Gap: The difference between your projected savings at retirement and the amount needed to fund your desired lifestyle.
Tax-Advantaged Accounts: Retirement accounts like 401(k)s and IRAs that provide tax benefits for retirement savings.

Retirement Calculator Tips

•Maximize employer 401(k) matching—it's free money
•The earlier you start, the less you need to save each month due to compounding
•Plan for 25-30+ years of retirement as life expectancy increases
•Consider healthcare costs, which can be substantial in retirement
•Social Security supplements but shouldn't be your primary retirement income

When to Use This Retirement Calculator

✓Setting retirement savings goals and contribution rates
✓Determining if you're on track for your target retirement age
✓Planning catch-up contributions if you started saving late
✓Evaluating the impact of retiring earlier or later
✓Adjusting expectations based on realistic projections

Retirement Calculator Examples

Early Career Saver

Age:30Retire:65Savings:$50,000Monthly:$500

Result:$1.2M at retirement

Starting at 30 with $500/month contributions and 7% returns projects to $1.2M, supporting $48,000 annual income.

Mid-Career Catch-Up

Age:45Retire:65Savings:$200,000Monthly:$1,000

Result:$1.05M at retirement

With 20 years and aggressive saving, projecting $1.05M for $42,000 sustainable annual income.

Near Retirement

Age:55Retire:67Savings:$500,000Monthly:$1,500

Result:$920K at retirement

12 years to retirement with $500K head start projects to $920K, supporting $36,800 annually.

Understanding Retirement in Depth

Retirement planning is a long-term endeavor that benefits enormously from early action and regular reassessment. This calculator helps you understand whether your current savings trajectory will support your retirement lifestyle goals.

The 4% Rule Explained

The 4% rule comes from the Trinity Study, which analyzed historical market returns. It found that withdrawing 4% initially, then adjusting for inflation annually, provided a 95%+ success rate over 30-year periods. However, critics note this was based on historical returns that may not repeat, and 30 years may not be enough for early retirees.

How Much Do You Need?

Multiply your desired annual retirement income by 25. Want $60,000/year? You need $1.5 million. Want $80,000/year? That's $2 million. This doesn't include Social Security or pensions, which can reduce the nest egg requirement.

The Power of Starting Early

To accumulate $1 million by age 65 at 7% returns: starting at age 25 requires $381/month, starting at 35 requires $820/month, and starting at 45 requires $1,920/month. Early investors contribute less total money but end with more.

Managing the Retirement Gap

If projections show a gap, you have options: increase contributions, delay retirement, reduce expected income needs, adjust investment allocation for potentially higher returns (with higher risk), or plan for part-time work in early retirement.

Retirement Calculator FAQs

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Marcus Chen

Financial Analysis Specialist

Marcus has over 12 years of experience in quantitative finance and personal financial planning. He specializes in loan analysis, investment modeling, and consumer debt strategies. His methodologies incorporate industry-standard financial mathematics used by major lending institutions.

Content reviewed: January 2026Next review scheduled: 2027

Editorial Standards: All calculations use industry-standard financial formulas. Content is reviewed for mathematical accuracy and updated to reflect current market conditions. This tool provides estimates for informational purposes and does not constitute financial advice.