Retirement Calculator

How to Use the Retirement Calculator

This retirement calculator projects your savings balance at retirement based on your current balance, monthly contributions (including employer match), expected investment return, and time horizon. Enter your current age and target retirement age — the calculator accounts for inflation, Social Security, and pension income to show your full retirement income picture.

How Much Do You Need to Retire?

The most widely used framework is the 4% rule: multiply your desired annual retirement income by 25 to get your savings target. Want $5,000/month ($60,000/year)? You need $1,500,000. Want $8,000/month ($96,000/year)? You need $2,400,000. This is based on historical research suggesting a 4% annual withdrawal rate has a very high probability of lasting 30+ years.

Savings Benchmarks by Age

Fidelity Investments recommends these savings-to-salary multiples as benchmarks: 1× salary by age 30, 3× by 40, 6× by 50, 8× by 60, and 10× by 67. These assume retiring at 67 with a 45% income replacement rate from savings (supplemented by Social Security).

What Rate of Return to Assume

A diversified stock/bond portfolio (like a target-date fund) has historically returned 7–10% nominally. After adjusting for 3% inflation, the real return is approximately 4–7%. Most financial planning tools use 6–7% as a conservative baseline. Using 7% nominal is reasonable for rough projections; use 5–6% for conservative planning.

2025 Contribution Limits

• 401(k): $23,500/year (under 50); $31,000 (50 and over, with catch-up)
• IRA (Traditional or Roth): $7,000/year (under 50); $8,000 (50 and over)
• HSA (Health Savings Account): $4,300 individual, $8,550 family — a powerful supplemental retirement vehicle

Always contribute at least enough to your 401(k) to get the full employer match — that's an immediate 50–100% return on your contribution.

Roth vs. Traditional 401(k): Which Is Right for You?

Traditional 401(k): Contributions are pre-tax — you reduce taxable income now and pay taxes on withdrawals in retirement. Best if you expect to be in a lower tax bracket later. Roth 401(k): Contributions are after-tax, but all growth and withdrawals in retirement are completely tax-free. Best if you're young, currently in a low bracket (22% or below), or expect higher income later. Many financial planners recommend splitting contributions between both to hedge future tax uncertainty. If you're under 35 and earning under $80,000, Roth is typically the better long-term bet.

The True Cost of Starting Late

Starting age matters far more than contribution amount. Investor A starts at 25, invests $500/month at 7% for 40 years → $1,310,000 at age 65. Investor B starts at 35, same $500/month for 30 years → $567,000. Investor C starts at 45 but contributes $1,000/month (double!) for 20 years → $488,000. Investor C puts in twice as much money and ends up with 60% less. Every year of delay roughly costs you 7% of your final balance. The first decade of saving is the most powerful decade of your financial life.

See how different scenarios play out in our retirement savings by age guide — including real benchmarks for every decade of your career.

Social Security: When to Claim

Social Security replaces roughly 40% of average pre-retirement income. Your monthly benefit depends on your 35 highest-earning years and your claiming age. Age 62 (earliest): permanently reduces benefit by up to 30%. Age 67 (full retirement age): 100% of your calculated benefit. Age 70: 124–132% of full benefit — guaranteed 8% increase per year you delay after 67. If you're in good health, delaying to 70 typically maximizes lifetime income for people who live past 80. Use the SSA.gov "My Social Security" portal to see your estimated benefit at each claiming age.

Building Multiple Retirement Income Streams

The strongest retirement plans combine at least 3 income sources: (1) 401(k)/IRA portfolio — your primary tax-advantaged vehicle. (2) Social Security — inflation-adjusted income guaranteed for life. (3) Taxable brokerage account — flexible savings with no contribution limits or required distributions. Optional: rental income, a pension, or part-time work in early retirement. When Social Security covers your baseline living expenses, your portfolio only needs to fill the gap — dramatically reducing the risk of outliving your savings.