Retirement Calculator

Will you be sipping margaritas on a beach or greeting people at Walmart? The difference is planning. See if your current savings are enough to fund your golden years.

What this calculator does

• Nest Egg: How much total money you need.
• Gap Analysis: Are you on track or falling behind?
• Longevity Risk: Will you outlive your money?

The Formula

We project your investments grows while inflation shrinks your purchasing power.

• The 4% Rule: A general rule of thumb. You can withdraw 4% of your total savings each year without running out of money for 30 years.
• Target: Annual Expenses / 4% (or Expenses x 25).

Unlike math class, here's what that means

If you spend $60,000/year:

• Safety Number: $60,000 x 25 = **$1.5 Million**.
• This assumes you get $0 from Social Security (unlikely, but safe).

Example Calculation

Age: 30. Retire: 65. Current Savings: $50,000. Monthly Contribution: $1,000. Return: 7%. Result at 65: $2.2 Million. Income: ~$88,000/year. (You are safe!).

Did You Know? 💡

• Social Security: The average monthly benefit is only ~$1,700. It's meant to replace ~40% of income, not 100%. You need your own savings.
• Life Expectancy: If you make it to 65, there's a 50% chance you'll live past 85. Plan for a 30-year retirement, just in case.
• Healthcare: The average retired couple needs $315,000 just for medical expenses. (Scary, right?).

Expert Insight

Roth vs Traditional:

• Traditional 401k: Pay tax later. (Good if you earn more now than you will in retirement).
• Roth IRA: Pay tax now. Tax-free later. (Good if you expect taxes to go up or your income to grow).

Why this matters

Time, not money, is your biggest asset. Saving $500/mo at age 20 is worth more than saving $2,000/mo at age 50.

Frequently Asked Questions

How much should I save? Aim for 15% of your gross income. If your employer matches 401k, count that!

What is FIRE? "Financial Independence, Retire Early." A movement of people saving 50%+ of their income to retire in their 30s or 40s.

Is $1 Million enough? Probably not in 30 years due to inflation. Aim higher.

Related Calculators

• Investment Calculator: Detailed growth projections.
• Social Security Estimator: Check your government benefits.

Disclaimer: The future is uncertain. This is a model, not a crystal ball.