Retirement Savings Calculator

How much you need to retire

A common way to size a retirement target is the replacement ratio: many people aim to replace roughly 70 to 80 percent of their pre-retirement income each year. Multiply the annual amount you expect to need by the number of years you expect to be retired for a rough goal.

One widely cited guideline is the 4 percent rule, the idea that withdrawing about 4 percent of your savings in the first year, then adjusting for inflation, has historically lasted around 30 years. It is a rule of thumb, not a guarantee, and inflation means future costs will be higher than today's.

Small increases now, big difference later

Because retirement savings compound over decades, the earlier you start the less you need to set aside each month. Delaying even a few years can require much larger contributions to reach the same goal.

If your employer offers a matching contribution, capturing the full match is effectively free money and one of the best returns available. Increasing your contribution rate a little each year, especially after a raise, is an almost painless way to close a gap.

How much should I save for retirement?

A common guideline is to save 10-15% of your income, but the right amount depends on your target retirement age, lifestyle and expected expenses. Use this calculator to test different contribution levels.

What return rate should I assume?

Many planners use a long-term average of around 5-7% after inflation for a diversified portfolio, but you should choose a rate that matches your own investments and risk tolerance.

Does starting early really matter?

Enormously. Because of compounding, contributions made in your 20s and 30s have decades to grow and typically contribute far more to your final balance than later contributions.

Is inflation included?

This tool projects nominal balances. To plan in today's money, use an inflation-adjusted (real) return rate for your expected return input.