Retirement Calculator
Project your retirement savings and check if you're on track for your income goal.
Your Details
How It Works
- Enter your current age, savings, and monthly contribution.
- Enter your target retirement age and desired annual income.
- Press Calculate to see if you're on track.
Formula Used
Based on the commonly cited "4% rule" for sustainable withdrawal rates.
Good to Know
- • The 4% rule is a guideline, not a guarantee.
- • Social Security or pensions would reduce how much you need from savings alone.
Important Notes
- • Doesn't account for inflation adjusting your income need over time.
- • Assumes a constant contribution and rate of return.
Understanding the 4% Rule
The 4% rule is a widely cited guideline suggesting that withdrawing about 4% of a retirement portfolio in the first year, then adjusting for inflation each year after, has historically had a good chance of lasting 30 years without running out. It's a useful planning shortcut, not a guarantee — actual safe withdrawal rates depend on market conditions, how long retirement lasts, and portfolio composition.
Closing a Projected Shortfall
If the projection shows a shortfall, the main levers are increasing monthly contributions, extending the time horizon (working a few more years), or adjusting the desired retirement income downward. Because of compounding, small increases to monthly contributions made early often close a shortfall more effectively than the same increase made closer to retirement.
A Primer on the Terminology
- 4% rule — a guideline suggesting a portfolio can sustain a 4% initial withdrawal rate, adjusted for inflation, over roughly 30 years.
- Nest egg needed — desired annual retirement income divided by the withdrawal rate.
Let's Work Through It: Checking If You're on Track
Target $60,000/year retirement income, using the 4% rule:
A 35-year-old with $60,000 saved, contributing $600/month at 7% until age 65, projects to roughly $1,180,000 — a shortfall of about $320,000 against this target, suggesting either a higher contribution rate, a longer working period, or a lower target income is needed to close the gap.
Contribution Level Table
$60,000 saved at 35, to age 65 at 7%:
| Monthly | Projected Balance |
|---|---|
| $400 | $950,000 |
| $600 | $1,180,000 |
| $800 | $1,410,000 |
What Catches People Out in Retirement Planning
- Using an unrealistic desired income — base it on actual expected expenses, not a round number.
- Ignoring other income sources — Social Security and pensions reduce how much the portfolio alone needs to cover.