🏖️ Retirement Calculator
Retirement Planning Basics
The widely used "4% Rule" suggests you can withdraw 4% of your nest egg annually in retirement and have funds last 30 years. For example, a $1,000,000 portfolio supports $40,000/year ($3,333/month).
How Much to Save
Many financial planners recommend saving 10–15% of gross income for retirement. The earlier you start, the less you need to save each month due to the power of compounding.
⚠️ This is an estimate only. Social Security, pension income, taxes, and inflation are not factored in. Consult a certified financial planner.
Frequently Asked Questions
A widely used rule of thumb is to save 25× your expected annual expenses (the '4% rule'). If you need $50,000/year in retirement, you'd need $1.25 million saved. This assumes a 30-year retirement with a diversified portfolio.
The 4% rule states you can withdraw 4% of your retirement portfolio in year one, then adjust for inflation each year, with a high likelihood of not running out of money over a 30-year retirement. It's based on historical market returns from the Trinity Study (1998).
As early as possible. Due to compound interest, money invested in your 20s grows far more than money invested in your 40s. A person who invests $5,000/year from age 25–35 (10 years) then stops can end up with more than someone who invests from 35–65 (30 years).
A 401(k) is employer-sponsored with higher contribution limits ($23,000 in 2024). An IRA is individual with lower limits ($7,000 in 2024) but more investment choices. Both offer tax advantages — Traditional versions give upfront deductions; Roth versions give tax-free withdrawals.
Social Security replaces about 40% of pre-retirement income for average earners. Full retirement age is 67 for people born after 1960. You can claim as early as 62 (reduced benefits) or delay until 70 (maximum benefits — 8% increase per year after full retirement age).