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Retirement Calculator

Estimate how much you will have saved by retirement, what it is worth in today’s money, and the monthly income it could support.

How it works

The calculator grows your current savings and monthly contributions at your expected yearly return, compounded monthly, from now until your retirement age. It then adjusts the result for inflation so you can see its buying power in today's dollars.

The income figure uses the 4% rule: withdrawing 4% of your savings in the first year of retirement, then adjusting for inflation, has historically lasted about 30 years in most market conditions.

Worked example

A 30-year-old with $25,000 saved who adds $500 a month and earns 7% a year would have about $1.12 million at 65. With 3% inflation, that is worth about $399,000 in today's dollars, enough for roughly $1,330 a month of income at a 4% withdrawal rate, on top of any pension or Social Security.

How much do I need to retire?

A common guide is to aim for 70% to 80% of your pre-retirement income each year. Another is to save 25 times the yearly amount you will need from your savings, which matches the 4% rule. Fidelity's milestones suggest having 1× your salary saved by 30, 3× by 40, 6× by 50 and 10× by 67.

Tips to boost your retirement savings

• Take the full employer match in a 401(k) or workplace pension. It is free money.
• Increase contributions by 1% each year or whenever you get a raise.
• Keep fees low. A 1% fee can reduce your final balance by more than 20% over 30 years.
• Use tax-advantaged accounts such as a 401(k), IRA or Roth IRA where you can.

Frequently asked questions

What rate of return should I use?

Many planners use 5% to 7% a year for a mixed stock and bond portfolio over the long term. Use a lower rate if you want a cautious estimate.

Why show today's dollars?

Prices rise over time, so $1 million in 35 years will buy much less than it does today. Today's dollars show its real value.

What is the 4% rule?

It is a guide that says you can withdraw about 4% of your savings in the first year of retirement, then raise it with inflation, with a good chance of the money lasting 30 years.

Does this include Social Security or a pension?

No. Add any expected pension or Social Security income to the monthly income shown.

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