Retirement Calculator
Plan your retirement with comprehensive calculators that factor in inflation, social security, life expectancy, and investment returns. Calculate savings needed and withdrawal strategies for financial security.
Retirement Planning Details
The average life expectancy in the U.S. is between 76 and 80 years.
Assumptions
of current income
The average inflation rate is around 3.5% in the past 100 years.
Optional
Social security, pension, etc.
of income
Enter retirement details to calculate savings plan.
Understanding Retirement
Why Do People Retire?
Health Considerations
Physical or mental health changes can affect job performance. Some workers retire due to disability, chronic illness, or declining capacity to perform their duties safely and effectively.
Work-Life Balance
Job stress, long hours, or desire for more personal time can motivate retirement. Many want to spend more time with family, pursue hobbies, or travel while they're still healthy.
Financial Readiness
Having sufficient savings and income sources (pensions, Social Security, investments) makes retirement financially feasible. This is often the determining factor in retirement timing.
Age Factors
While retirement can theoretically happen at any age, it typically occurs between 55-70. Some choose to semi-retire by gradually reducing work hours before full retirement.
Financial Reality of Retirement
- Social Security Limitations: Social Security only replaces about 40% of pre-retirement income for average workers - insufficient for most people's needs
- Healthcare Costs: Medical expenses often increase in retirement, and Medicare doesn't cover everything. Long-term care can be especially expensive
- Inflation Impact: Rising costs reduce purchasing power over time. What costs $100 today could cost $180+ in 20 years with 3% inflation
- Longevity Risk: Many retirees live 20-30+ years in retirement. Your savings must last decades, not just a few years
How Much to Save for Retirement
Popular Retirement Savings Rules
10-15% Rule
Save 10-15% of your pre-tax income annually during working years. Someone earning $50,000 should save $5,000-$7,500 yearly. Starting at age 25, this can build a $1 million nest egg by retirement.
80% Replacement Rule
Plan to need 70-80% of your pre-retirement income to maintain your lifestyle. If you earned $100,000 working, you'd need $70,000-$80,000 annually in retirement from all sources combined.
4% Withdrawal Rule
Withdraw 4% of your retirement savings in year one, then adjust for inflation. If you need $100,000 annually, you'd need $2.5 million saved ($100,000 รท 4% = $2.5M).
25x Annual Expenses
Save 15-25 times your desired annual retirement income. This rule provides a cushion for market volatility and helps ensure your money lasts throughout retirement.
Age-Based Savings Milestones
- By Age 30: Have 1x your annual salary saved (if you earn $50,000, have $50,000 saved)
- By Age 40: Have 3x your annual salary saved (3x current income in retirement accounts)
- By Age 50: Have 6x your annual salary saved (you can also make catch-up contributions at this age)
- By Age 60: Have 8x your annual salary saved (you're in the home stretch of retirement planning)
- By Age 67: Have 10x your annual salary saved (this should support 80% income replacement)
Factors That Affect Your Savings Target
Lifestyle Goals
Modest retirement requires less savings than luxury travel and dining. Define your retirement vision to set appropriate targets.
Health & Longevity
Family history of longevity means you need money to last longer. Plan for healthcare costs that increase with age.
Other Income Sources
Social Security, pensions, or part-time work reduce required personal savings. Factor in all expected income streams.
Retirement Accounts & Income Sources
Employer-Sponsored Retirement Plans
401(k) Plans
Most common employer plan with high contribution limits ($23,000 in 2024, $30,500 if 50+). Many employers offer matching contributions - take full advantage as it's free money.
403(b) Plans
For nonprofit organizations, schools, and government workers. Similar to 401(k)s with comparable contribution limits and potential employer matching.
457 Plans
For state and local government employees. Unique advantage: no early withdrawal penalty at any age if you leave your job, making it flexible for early retirement.
Traditional Pensions
Defined benefit plans that pay monthly income for life. Less common today but still offered by some government employers and large corporations.
Individual Retirement Accounts (IRAs)
- Traditional IRA: Tax deduction on contributions, taxed on withdrawals. Good if you expect to be in a lower tax bracket in retirement. $7,000 limit ($8,000 if 50+) in 2024
- Roth IRA: No tax deduction now, but tax-free growth and withdrawals in retirement. Ideal for younger savers and those expecting higher future tax rates
- SEP-IRA: For self-employed individuals and small business owners. Higher contribution limits (up to 25% of income or $69,000 in 2024)
- Health Savings Account (HSA): Triple tax advantage: deductible contributions, tax-free growth, tax-free withdrawals for medical expenses. Functions like retirement account after age 65
Social Security & Other Income Sources
Social Security Benefits
Replaces about 40% of pre-retirement income. You can claim reduced benefits at 62, full benefits at 66-67, or increased benefits by waiting until 70.
Personal Savings & Investments
Taxable investment accounts, real estate, and other assets. Provides flexibility since there are no age restrictions or required distributions.
Retirement Savings Priority Order
- 1. Employer Match: Contribute enough to get full 401(k) match - it's an immediate 100% return
- 2. High-Interest Debt: Pay off credit cards and other high-interest debt (usually above 6-8% interest)
- 3. Emergency Fund: Build 3-6 months of expenses in a savings account for unexpected costs
- 4. Max Retirement Accounts: Maximize 401(k), IRA, and HSA contributions for tax advantages
- 5. Taxable Investments: Once retirement accounts are maxed, invest in taxable accounts for additional growth