Investment / Retirement Calculator
🏖️ Retirement 🆓 Free 📅 2025 Updated

🏖️ Retirement Calculator

Enter your current age, income, savings, and contribution rate to find your retirement savings target, projected portfolio at retirement, estimated monthly income, Social Security estimate, and the exact savings gap. Includes Fidelity age benchmarks so you can see whether you're on track, slightly behind, or significantly behind - and what it would take to close the gap.

🏖️ Retirement Calculator

👤 About You
💰 Current Savings
🏖️ Retirement Needs

⚠️ Disclaimer: Projections are estimates based on assumptions. Actual returns vary. Consult a certified financial planner (CFP) for personalised advice.

📈 Year-by-Year Growth Milestones

Run the calculator first to see your personalised milestones.

Age Year Balance Annual Contribution Cumul. Contributed Investment Growth
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📐 How Retirement Planning Works

How Much Do You Need? (The Nest Egg)

Step 1: Annual income needed in retirement = Current income x Replacement Rate (80%) Step 2: Subtract guaranteed income = Annual needed - Social Security - Pension Step 3: Apply withdrawal rate (4% rule) Nest Egg Needed = Annual from savings / Withdrawal Rate Example: Current income: $95,000 Need 80%: $76,000/year SS income: $26,400/year From savings: $76,000 - $26,400 = $49,600/year At 4% rule: $49,600 / 4% = $1,240,000 needed

Future Value of Current Savings

FV = PV x (1 + r)^n + PMT x [(1+r)^n - 1] / r Where: PV = Current savings r = Monthly return rate (annual / 12) n = Months to retirement PMT = Monthly contributions (yours + employer) This gives your projected nest egg at retirement.

The 4% Rule (Safe Withdrawal Rate)

The 4% rule (Bengen, 1994): Withdraw 4% of nest egg in year 1, then adjust for inflation each year. Portfolio historically lasts 30+ years. Example: $1,000,000 nest egg Year 1 withdrawal: $40,000 (4%) Year 2 (3% inflation): $41,200 Research shows 3.3-3.5% is safer for 40-year retirements. Many planners now use 3.5% as conservative estimate.

Rule of 25 (Nest Egg Target)

Nest Egg = Annual Spending x 25 (This is the inverse of the 4% rule) Annual from savings x 25 = Nest Egg needed Example: Need $50,000/year from portfolio Nest Egg = $50,000 x 25 = $1,250,000 With 3.5% withdrawal: multiply by 28.6 With 3% withdrawal: multiply by 33.3

2025 Contribution Limits

401(k): $23,500/year ($31,000 if age 50+) IRA/Roth IRA: $7,000/year ($8,000 if age 50+) SEP-IRA: 25% of comp, max $70,000 SIMPLE IRA: $16,500 ($20,000 if age 50+) Employer match: Usually 50-100% of your contribution up to 3-6% of your salary. FREE MONEY - always max the match first!

❓ Frequently Asked Questions

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📅 2025 Contribution Limits

401(k) under 50$23,500
401(k) age 50+$31,000
IRA / Roth IRA$7,000
IRA catch-up 50+$8,000
SEP-IRA max$70,000
SIMPLE IRA$16,500
HSA (single)$4,300
HSA (family)$8,550

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💼 401k Calculator 🏛️ Social Security 📈 Investment Calc 🎯 Savings Goal

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Retirement Calculator - How Much You Need, Whether You're On Track, and What to Do

Retirement planning has a specific mathematical structure: the 4% rule tells you how large a portfolio you need. Your current savings + compound growth tells you where you'll be. The gap between these two numbers tells you whether you're on track. This calculator makes all three calculations concrete and personalised, so you can make specific decisions rather than relying on generic advice.

Quick example - 35-year-old, $90K income, $120K saved, saving 12%/year at 7% return, retiring at 67: Retirement savings target (4% rule on $72K/year need): $1.8M. Projected portfolio at 67: $2.1M. Monthly income from portfolio: $7,000. Add estimated Social Security: ~$2,400/month. Total retirement income: $9,400/month. Status: on track.

The Retirement Math - Three Numbers That Define Your Plan

1. How Much You Need (Target)

  • Annual spending from portfolio × 25 = retirement target (4% rule)
  • Subtract Social Security and pension from annual need first
  • Example: Need $80K/year, Social Security $24K → portfolio needs to cover $56K → target = $56K × 25 = $1.4M
  • For 40+ year retirements: use ×28–30 (3.3–3.5% rate)
  • Include inflation: retirement spending in future dollars, not today's

2. Where You'll Be (Projection)

  • Compound growth of current savings + future contributions
  • Formula: FV = PV×(1+r)^n + PMT×[((1+r)^n−1)÷r]
  • 7% is the commonly used real-return assumption for diversified equity
  • After inflation (7% nominal − 3% inflation = ~4% real), adjust accordingly
  • Employer match is a guaranteed 50–100% return - always capture it fully

Fidelity Age Benchmarks - Are You on Track?

Fidelity's widely cited savings benchmarks (assuming retiring at 67):

  • Age 30: 1× annual salary saved
  • Age 35: 2× annual salary
  • Age 40: 3× annual salary
  • Age 45: 4× annual salary
  • Age 50: 6× annual salary
  • Age 55: 7× annual salary
  • Age 60: 8× annual salary
  • Age 67: 10× annual salary

These assume 15% gross income savings rate (including employer match), moderate investment returns, and roughly 45% income replacement ratio from savings. They're guidelines - not gospel. Higher earners typically need a higher multiple because a larger portion of pre-retirement income needs to be replaced (Social Security replaces a higher percentage of lower earners' income). The calculator adjusts for your specific income.

Social Security - When to Claim and What to Expect

Social Security significantly reduces how much your portfolio needs to generate. Claiming age matters enormously:

  • Claim at 62 (earliest): ~25–30% reduction from full benefit. Lower monthly payment for life.
  • Claim at Full Retirement Age (66–67 depending on birth year): Full benefit. The baseline.
  • Claim at 70 (latest): ~32% increase above full benefit (8% per year delayed past FRA). Highest monthly payment for life.

Break-even for delaying from 62 to 70: approximately age 78–82 depending on the benefit amount. If you're healthy and expect to live past 80, delaying typically maximises lifetime benefits. If you need the income earlier or have health concerns, claiming earlier may be appropriate. This is one of the highest-stakes financial decisions in retirement planning.