Retirement Calculator

The most widely used rule is the 4% Rule (also called the Safe Withdrawal Rate): at retirement, you can withdraw 4% of your portfolio per year without running out of money over a 30-year retirement. To calculate your target: multiply your desired annual income by 25. Example: $60,000/year income goal × 25 = $1.5 million needed. This is based on historical market returns and is a useful starting estimate, not a guarantee.

The S&P 500 has returned approximately 10% annually before inflation (about 7% after inflation) over the long term. For retirement planning, most advisors suggest using 6-7% nominal as a conservative estimate for a diversified portfolio of stocks and bonds. Our calculator defaults to 7%. Using a slightly lower rate builds in a safety margin — if you hit your goal at 6%, you're in even better shape at 7%.

The 4% rule originates from the 1994 Trinity Study, which found that a portfolio of 50-75% stocks could sustain withdrawals of 4% per year for at least 30 years across all historical market conditions including the Great Depression. The rule has held up well historically, but some advisors now recommend 3-3.5% for longer retirements or more conservative portfolios. Our calculator uses 4% to estimate monthly retirement income from your projected savings.

A common guideline is to save 15% of gross income including employer matches. Starting early matters enormously: saving $500/month from age 25 at 7% grows to about $1.3 million by 65. Starting the same at 35 gives only $607,000. The difference of 10 years in start time costs over $700,000. The best retirement savings strategy is to maximize tax-advantaged accounts first: 401(k) up to the employer match, then Roth IRA, then back to 401(k).

Yes, significantly. If Social Security will cover $2,000/month of your expenses, you only need your portfolio to provide the remaining gap. Example: you want $5,000/month, Social Security provides $2,000 — you only need to fund $3,000/month from savings, requiring $900,000 instead of $1.5 million. Use the SSA.gov estimator to get your personal projected benefit, then subtract that from your income goal when calculating your savings target.