Retirement
Calculator
Find out if you're on track to retire comfortably. Enter your current savings, monthly contributions, and target retirement age to see your projected nest egg, gaps, and the year your money runs out.
The 4% Rule
A widely cited guideline suggesting you can safely withdraw 4% of your portfolio annually without running out of money over a 30-year retirement. This gives the target formula: annual expenses × 25 = your nest egg goal.
Starting Early Is Everything
Starting at 25 vs 35 with identical monthly contributions typically produces roughly double the retirement savings, purely through extra years of compounding. Time in the market matters more than the monthly amount.
Inflation's Hidden Cost
$5,000/month today has the spending power of ~$3,000 in 20 years at 2.5% inflation. The real return (return minus inflation) shows your portfolio's true purchasing-power growth — always plan with this number.
2025 Contribution Limits
IRA: $7,000/year ($8,000 if 50+). 401(k): $23,500/year ($31,000 if 50+). Maxing tax-advantaged accounts before taxable investing can significantly accelerate growth through deferred taxes and employer matching.
Morgan is 30 years old, earns $70,000/year, has $15,000 already saved, and wants to retire at 65 with 80% of current income ($56,000/year). Assuming 7% annual returns and 3% inflation.
| Monthly contribution | Balance at 65 | Annual withdrawal (4% rule) | Goal met? |
|---|---|---|---|
| $300/month | $712,000 | $28,480/year | ✗ 51% of goal |
| $600/month | $1,198,000 | $47,920/year | ⚠ 86% of goal |
| $875/month | $1,602,000 | $64,080/year | ✓ Exceeds goal |
Morgan needs to save ~$875/month (15% of gross income) to hit the goal. Starting at 30 instead of 25 means Morgan needs ~$280/mo more to reach the same target — the cost of waiting 5 years.
The 4% withdrawal rule
Based on the Trinity Study, withdrawing 4% of your portfolio annually in retirement has historically lasted 30+ years across most market conditions. On a $1M portfolio, that's $40,000/year. This is a starting point — adjust for your expected lifespan and spending.
Always capture your employer match
A 50% employer match on your 401(k) contributions up to 6% of salary is a guaranteed 50% return. This beats every other investment available to you. Never leave this on the table — contribute at least enough to get the full match.
The Fidelity age benchmarks
Fidelity recommends: 1× salary saved by 30, 3× by 40, 6× by 50, 8× by 60, 10× by retirement. These are rough guides, not mandates. If you're behind, the best move is increasing contributions now — time is still your biggest asset under 50.
Roth vs Traditional IRA/401(k)
If you expect to be in a higher tax bracket in retirement than now (common for younger earners), Roth is usually better — you pay tax now on the contribution and withdrawals are tax-free. If you're in peak earnings years, Traditional may reduce your tax bill more today. Many people use both.
Find your retirement target and whether you're on track to hit it.