Are you saving enough for the retirement you want?
Use this planner to project your retirement nest egg from your current income, savings rate, employer match and expected return. It shows what that nest egg is worth in today's dollars, how much monthly income it can pay, whether it lasts through retirement, and how much more you would need to save each month to close any gap. For a simpler view of compound growth without the retirement specific assumptions, try the investment calculator.
Retirement Plan Details
Enter your details below. Results update as you type.
Contributions and investment growth to retirement
Nest egg balance through retirement
A Worked Retirement Example
A 35 year old earning $85,000 who has $50,000 saved, contributes 10% of income with a 3% employer match ($921 a month in total) and earns 7% a year would have about $1,789,621 at age 67. With 3% inflation that is worth about $694,976 in today's dollars. Withdrawing 4% a year gives $5,965 a month ($2,317 in today's dollars), which with $1,800 of Social Security or pension income covers a $4,000 monthly budget by $117. Keeping one year of retirement spending ($48,000) in a high yield savings account at today's MonitorBankRates average of 2.00% earns about $958 a year while it waits.
| Example: age 35 to 67, $85,000 income, 10% plus 3% match, 7% return | Result |
|---|---|
| Monthly contribution including match | $921 |
| Nest egg at 67 (nominal) | $1,789,621 |
| Nest egg in today's dollars (3% inflation) | $694,976 |
| Monthly income at a 4% withdrawal rate (today's dollars) | $2,317 |
| One year of spending ($48,000) in high yield savings at 2.00% APY | $958 a year |
Change any input above to run your own numbers. Contributions are held flat in the projection, so raising them as your income grows would improve the outcome.
How to Use the Retirement Calculator
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Enter your current age and retirement age
Most U.S. retirees stop full time work somewhere between 62 and 67, but pick the age that fits your plans. Earlier retirement requires either a larger nest egg or a lower spending budget, and more years in retirement for the money to cover.
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Enter your savings, contributions and employer match
Add your existing 401(k), IRA, and brokerage balances to the current savings field. Enter your own contribution as a percent of income or a monthly dollar amount, then add the employer match as a percent of income; the calculator adds it to your contributions.
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Set your returns, inflation and retirement budget
For a diversified stock and bond mix, 6% to 8% is a common return assumption before retirement, with a lower return during retirement as the mix shifts toward bonds. For your monthly retirement budget, use 70% to 80% of your current spending in today's dollars unless you expect major lifestyle changes.
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Review the gap and drawdown analysis
The calculator compares your projected income from savings (at the withdrawal rate you set) plus Social Security against your budget, all in today's dollars. A green surplus means you are on track; a red gap comes with the extra monthly saving needed to close it. The drawdown chart shows whether the nest egg lasts for the years in retirement you entered and the age the money would run out.
How We Calculate Your Results
1. The Growth Phase: We grow your savings month by month from your current age to your retirement age at the expected return, adding your contribution and the employer match each month. The chart separates your contributions (the cash you and your employer put in) from investment growth to show the power of compounding.
2. Today's Dollars: The projected nest egg is discounted by your inflation rate for each year until retirement, so you can compare it with prices you understand today.
3. The Income Phase: To estimate how much your nest egg can pay you, we apply your withdrawal rate. The classic 4% guideline suggests you can withdraw 4% of your savings in the first year and adjust for inflation afterward with a low risk of running out over 30 years.
4. The Gap Analysis: We add your income from savings (in today's dollars) to your other income and compare it with your monthly budget. When there is a gap, we solve for the extra monthly contribution that would grow into the additional nest egg needed by your retirement age.
5. The Drawdown: Starting at retirement, each year we withdraw the part of your budget not covered by other income (grown with inflation), and the remaining balance earns the retirement return. If the balance hits zero before the years in retirement you entered, we show the age the money runs out.
Frequently Asked Questions
How much money do I need to retire comfortably?
A common rule of thumb is the "Rule of 25," which suggests you need to save 25 times your expected annual expenses. For example, if you need $40,000 per year from your savings (after Social Security), you should aim for a nest egg of $1,000,000. The number changes if you expect a long retirement (early retiree) or significant healthcare costs.
What is the 4% Safe Withdrawal Rule?
The 4% rule is a guideline from the "Trinity Study" used by financial planners. It assumes that if you invest in a balanced portfolio of stocks and bonds, you can withdraw 4% of your starting balance in the first year of retirement, and adjust that amount for inflation every subsequent year, with a very low risk of running out of money for 30 years. Some early retirement planners use a more conservative 3.5% to handle longer retirement horizons; you can change the withdrawal rate above to test it.
Does this calculator account for inflation?
Yes. The nest egg and the monthly income it produces are shown both in nominal (future) dollars and in today's dollars using the inflation rate you enter, and the drawdown grows your retirement spending by inflation each year. Your budget and other income should be entered in today's dollars.
How much of my income should I save?
Most experts recommend saving 15% of your pretax income annually starting in your 20s or early 30s, including any employer 401(k) match. If you start in your 40s or 50s, you may need to increase this to 20% or 25% to catch up. The savings goal calculator can help you reverse engineer the monthly savings needed to hit a specific nest egg target.
What is the order of operations for retirement accounts?
The widely recommended order: (1) contribute enough to your 401(k) to capture the full employer match, (2) fund a Roth IRA if eligible, (3) return to the 401(k) and contribute up to the annual limit, (4) use a taxable brokerage account for anything beyond that. The match is free money; the Roth gives you tax free retirement income.
Should I keep retirement savings in stocks or move to safer investments as I age?
Most planners recommend a "glide path" that gradually shifts from mostly stocks (when you are young and have decades to ride out volatility) to a more balanced mix of stocks and bonds as you near retirement. A common rule of thumb is "110 minus your age in stocks," so a 40 year old would hold about 70% stocks. Target date retirement funds do this rebalancing automatically. That is why the calculator lets you set a lower return during retirement.
What about Social Security?
Social Security can replace roughly 30% to 40% of preretirement income for average earners, but it should not be your only plan. You can claim as early as 62 (with reduced benefits), at full retirement age (66 to 67 depending on birth year), or delay until 70 for the maximum benefit. Each year you delay past full retirement age increases your benefit by about 8%.
Where should I keep money I will need in the first few years of retirement?
Most retirees keep 1 to 3 years of living expenses in cash or near cash so they do not have to sell stocks during a market downturn. A high yield savings account works for the first year's needs; at today's MonitorBankRates average of 2.00% APY, one year of a $4,000 monthly budget ($48,000) earns about $958 a year. A CD ladder covers years 2 and 3 with locked in rates. The remaining money stays invested for the long haul.
Does the calculator account for taxes?
No. The projected nest egg is pretax, which is conservative for traditional 401(k) and IRA money (taxed on withdrawal) and overly conservative for Roth money (tax free on withdrawal). A reasonable adjustment: assume 15% to 20% of withdrawals from traditional accounts go to federal and state income tax. Roth withdrawals come out untouched.
