Retirement Calculator

How the Retirement Calculator Works

This calculator uses two key calculations: projecting your savings to retirement age using compound growth, then comparing that to how much you need based on the 4% safe withdrawal rule.

The 4% rule (Bengen Rule) states that retirees can safely withdraw 4% of their portfolio annually in retirement without running out of money over a 30-year period. To find your retirement number: multiply your desired annual retirement income by 25. For $5,000/month ($60,000/year), you need $1,500,000.

The Calculation Method

Projected = Saved(1+r)ⁿ + Monthly × [(1+r)ⁿ−1] / r Target = Annual Income × 25 (4% withdrawal rule)

Retirement Benchmarks by Age

Fidelity's widely-cited retirement savings benchmarks suggest having saved the following multiples of your annual salary by age:

Age	Target Savings (×Salary)	Example ($80k salary)
30	1×	$80,000
40	3×	$240,000
50	6×	$480,000
60	8×	$640,000
67	10×	$800,000

Maximizing Retirement Contributions

In 2025, the IRS allows $23,500 annually in 401(k) contributions ($31,000 if age 50+) and $7,000 in IRA contributions ($8,000 if 50+). Maxing both accounts and taking any employer match is the fastest legal path to retirement security. Even modest employer matches represent a 50–100% instant return on the matched portion.

Frequently Asked Questions

A common rule of thumb is to save 25× your annual retirement expenses (the 4% rule). If you need $60,000 per year in retirement, you need $1,500,000. However, this varies by retirement age, health, Social Security benefits, and lifestyle. Earlier retirement requires a larger nest egg since withdrawals must last longer.

The 4% rule, developed by financial advisor William Bengen in 1994, states that retirees can withdraw 4% of their portfolio in year one, then adjust for inflation annually, with high confidence the portfolio lasts 30+ years. It is based on historical US market data. Some advisors now suggest 3–3.5% for very early retirees.

Yes — significantly. Social Security income reduces how much you need from savings. If you expect $1,500/month from Social Security, that's $18,000/year you don't need to fund from your portfolio. Subtract your expected Social Security income from your income need before multiplying by 25.

A 7% real return (inflation-adjusted) is the historical average for a diversified stock portfolio. Nominal returns have averaged ~10% for the S&P 500, but 7% accounts for ~3% inflation. A balanced portfolio (60% stocks, 40% bonds) typically returns 5–6%. More conservative investors should use a lower assumed return.