The 4% Rule
Financial planners often use the "4% rule" to estimate retirement needs. This rule suggests you can withdraw 4% of your retirement savings annually without running out of money over a 30-year retirement.
Enter your information below to see if you're on track for retirement. The calculator shows your projected savings growth and whether you'll meet your retirement income goals based on the 4% withdrawal rule.
Your Information
Your current age in years
When you plan to retire
Total saved in retirement accounts
Your current annual gross income
Percentage of income saved annually
Average annual investment return (typical: 6-8%)
Expected average inflation (typical: 2-3%)
Income needed in retirement (typical: 70-80%)
Your Retirement Projection
Enter your information and click "Calculate Retirement Plan" to see your personalized projection.
Savings Growth Visualization
Understanding Your Retirement Numbers
Start Early
The power of compound interest means starting to save even a few years earlier can dramatically increase your retirement savings. Time is your greatest asset in retirement planning.
Adjust for Inflation
Don't forget that inflation reduces purchasing power over time. A retirement income that seems adequate today will need to be higher in the future to maintain the same standard of living.
Review Regularly
Your retirement plan isn't set in stone. Review and adjust your savings rate, investment strategy, and retirement goals annually or when major life changes occur.
Frequently Asked Questions
How much should I save for retirement?
Most financial advisors recommend saving 10-15% of your gross income for retirement. However, the ideal amount depends on your current age, existing savings, retirement goals, and expected Social Security benefits. Use our calculator to get a personalized recommendation.
What is a realistic rate of return for retirement savings?
Historically, diversified stock portfolios have returned about 10% annually, while bonds return 4-6%. A balanced portfolio typically returns 6-8% annually. Conservative estimates use 6-7% to account for market volatility and fees.
When should I start saving for retirement?
The best time to start is now! Thanks to compound interest, the earlier you start, the less you need to save each month. Someone who starts saving at age 25 versus 35 can save significantly less while still achieving the same retirement goal.
How does this calculator work?
Our calculator uses standard financial formulas to project your retirement savings growth. It accounts for your current savings, annual contributions, expected investment returns, and inflation to show whether you're on track to meet your retirement income goals.
Should I include Social Security in my retirement planning?
While Social Security will likely provide some income in retirement, it's designed to replace only about 40% of pre-retirement income for average earners. This calculator focuses on personal savings, but you should factor in expected Social Security benefits when planning your overall retirement income.