Retirement
Plan your retirement with savings projections and income planning
Calculators on this site provide estimates for general informational purposes only. They are not financial, investment, tax, or legal advice. Consult a qualified professional before making any decision.
How to use Retirement
- 1Enter your current age and planned retirement age to set the accumulation period.
- 2Fill in existing savings, the monthly amount you can contribute and the expected annual return.
- 3See the projected total at retirement and the safe monthly withdrawal suggested by the 4% rule.
How retirement savings are projected
Future value = current savings × (1+r)ⁿ + monthly × [((1+r)ⁿ − 1) ÷ r]The formula has two parts: existing savings compounding to retirement, and regular contributions accumulating through the annuity formula. Here r is the monthly rate, the annual return divided by 12, and n is the number of months to retirement. It assumes a constant return, monthly compounding and contributions at period end, so treat the output as a scenario rather than a forecast, since real markets fluctuate.
A useful rule of thumb is the 4% rule: withdraw 4% of the portfolio in the first year of retirement, then adjust the amount for inflation each year, and the money is unlikely to run out over a 30-year retirement. It comes from backtests of US stock and bond history and implies saving 25 times your annual spending. If you retire early or expect a longer retirement, lower the safe withdrawal rate to 3.0% to 3.5%. Results are extremely sensitive to the return assumption, so run optimistic, neutral and pessimistic cases.
| Monthly | Total contributed | Value at retirement | Investment growth |
|---|---|---|---|
| 500 | 180,000 | ≈ 502,000 | ≈ 322,000 |
| 1,000 | 360,000 | ≈ 1,004,000 | ≈ 644,000 |
| 2,000 | 720,000 | ≈ 2,008,000 | ≈ 1,288,000 |
| 3,000 | 1,080,000 | ≈ 3,012,000 | ≈ 1,932,000 |
Effect of monthly contributions (30 years at 6% a year)
Frequently asked questions
Does the 4% rule still hold?
It is a useful starting point, not a law. The rule was backtested on US history, so if future returns are lower, your retirement lasts more than 30 years, or your local markets behave differently, the safe rate should come down. Recent research often suggests 3.0% to 3.5%, or a dynamic approach of withdrawing less in years when markets fall sharply.
What share of income should I save?
A common target is 10% to 15% of pre-tax income, including any employer match. What matters more is your replacement rate: most people need 70% to 80% of pre-retirement income to maintain their standard of living. Starting at 30 usually requires 15% to 20% to catch up, while starting before 25 may be fine at around 10%.
How should I handle inflation?
The calculator produces nominal amounts with inflation not deducted. To see real purchasing power, subtract expected inflation from your expected return before calculating, for instance using 4% real if you expect 7% nominal and 3% inflation. At 3% inflation, 1,000,000 in 30 years buys what about 410,000 buys today, so ignoring inflation badly overstates your position.
How much does starting 10 years later cost?
A great deal. Investing 1,000 a month at 6% from age 25 to 60 produces roughly 1,430,000, while starting at 35 yields only about 700,000, less than half. You lose ten years of compounding, and compounding does its heaviest work late in the period. Starting earlier is usually more powerful than contributing more.
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