Retirement Savings Calculator
Project how much you will have at retirement based on your current savings, contributions, and expected investment returns. See if you are on track.
Retirement Savings Calculator
Projected Balance
$1.02M
Needed (4% rule)
$1.20M
Monthly Income
$3,386
Years to Retire
30
How Much Do You Need to Retire?
The most widely used framework for determining your retirement number is the 4% rule, derived from research by financial planner William Bengen. The rule states that you can safely withdraw 4% of your portfolio in year one of retirement and adjust for inflation each year, with a high probability that the portfolio will last 30 or more years. This means your target nest egg should be 25 times your annual retirement spending.
If you plan to spend $60,000 per year in retirement (including Social Security income), you need 25 × $60,000 = $1.5 million. If Social Security covers $20,000 and you need $60,000 total, your portfolio only needs to produce $40,000 per year — requiring $1.0 million. Understanding your anticipated retirement spending is as important as understanding how to grow your savings.
The 4% rule assumes a diversified portfolio of roughly 60% stocks and 40% bonds, historical average returns, and a 30-year retirement horizon. For retirements lasting 35 to 40 years (early retirees), a more conservative withdrawal rate of 3.5% to 3.7% is often recommended. This calculator uses the 4% rule as a starting framework.
Maximizing Retirement Savings: Accounts and Strategies
The best retirement savings tools in the US are tax-advantaged accounts that let compound growth work without annual tax drag. The 401k (or 403b for government/nonprofit employees) allows contributions of up to $23,500 in 2025, with an additional $7,500 catch-up contribution for those 50 and older. Always contribute at least enough to get your full employer match — it is an immediate 50% to 100% return on that portion of your contribution.
Beyond the employer match, the Roth IRA is an exceptional vehicle for savers who qualify. Contributions are made with after-tax dollars, but all growth and qualified withdrawals in retirement are completely tax-free. For 2025, the contribution limit is $7,000 ($8,000 for those 50+), with income phase-outs beginning at $150,000 for single filers. If your income exceeds Roth IRA limits, the backdoor Roth IRA strategy is an alternative worth exploring.
The total sequence of retirement contributions should typically be: (1) Contribute enough to your 401k to capture the full employer match. (2) Fully fund a Roth IRA if income-eligible. (3) Return to your 401k to maximize the annual contribution limit. (4) Consider taxable brokerage accounts for additional savings. This sequence maximizes tax advantages before moving to taxable accounts.
Social Security represents a significant component of retirement income for most Americans. The average monthly benefit in 2024 is approximately $1,907, or about $22,884 annually. Delaying Social Security from 62 to 70 increases monthly benefits by approximately 76%, making delay valuable for those who expect to live well into their 80s and do not need the income immediately.
- ✓Always capture the full employer 401k match — it is free money
- ✓Roth accounts are particularly valuable for young savers in lower tax brackets
- ✓Increase contribution rate by 1% each year until you reach 15 to 20% of income
- ✓Invest in low-cost index funds — fees are one of the biggest predictors of long-term returns
- ✓Rebalance annually to maintain your target asset allocation
Investment Returns and Asset Allocation for Retirement
Long-term expected returns depend heavily on asset allocation. The US stock market has historically returned approximately 10% annually before inflation and 7% after inflation over long periods. A diversified portfolio including international stocks and bonds will typically show lower volatility and slightly lower returns. This calculator defaults to 7% — a reasonable after-inflation estimate for a balanced portfolio.
As you approach retirement, gradually reducing stock exposure and increasing bond and cash allocations reduces portfolio volatility and protects against sequence-of-returns risk — the danger of a major market decline just before or just after you start withdrawing. The classic guidance is to hold a stock percentage equal to 110 minus your age (so 75% stocks at age 35, 50% stocks at age 60), though this is a simplification of modern target-date fund strategies.
Low-cost index funds outperform the majority of actively managed funds over 10+ year periods, primarily due to lower expense ratios. A fund charging 0.05% versus 1.00% annually may not seem significant, but over 30 years with $500,000 invested, the fee difference compounds to over $150,000 in additional wealth. Always check the expense ratio before selecting any investment fund.
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Frequently Asked Questions
How much should I have saved for retirement by age?
Fidelity's age-based retirement savings benchmarks: 1x salary by age 30, 3x by 40, 6x by 50, 8x by 60, 10x by 67. These are rough targets based on typical spending and Social Security assumptions. Use the retirement calculator above with your specific income, spending expectations, and retirement age for a personalized projection.
What rate of return should I use in the retirement calculator?
For long-term retirement projections, 6 to 7% is a commonly used real (after-inflation) return assumption for a diversified portfolio of 60-70% stocks and 30-40% bonds. The nominal historical return of US stocks is approximately 10%, but inflation erodes purchasing power. Using 7% accounts for a roughly 3% long-run inflation assumption. More conservative portfolios might use 5 to 6%; more aggressive all-stock portfolios might use 8%.
When should I start saving for retirement?
As early as possible. Due to compound interest, money saved at 25 has four times the potential growth of money saved at 45 assuming the same return rate. Even small amounts matter enormously when started early. If you cannot save much now, focus on at least capturing the full employer 401k match — that is an immediate guaranteed return of 50% to 100% on that portion of your savings.
How does Social Security affect my retirement savings target?
Social Security reduces how much you need to save in your portfolio. If Social Security pays $2,000 per month ($24,000 per year) and you need $60,000 annually, your portfolio only needs to generate the $36,000 gap. Using the 4% rule, that requires $900,000 in savings — significantly less than the $1.5 million you would need with no Social Security. Include your estimated Social Security benefit (available at ssa.gov) in your planning.
What is the 4% rule and is it still valid?
The 4% rule states you can withdraw 4% of your portfolio in the first year of retirement and adjust annually for inflation, with a high probability of the portfolio lasting 30 years. It was derived from historical data and is widely used as a planning framework. Some researchers suggest 3.3 to 3.5% may be more conservative given current low-interest-rate expectations. For early retirees with 40+ year horizons, 3.5% provides more safety margin.