Use this free retirement calculator to plan your retirement savings. Enter your age, your savings, what you add each year and the income you will need, and see how much you will have when you retire, how much you will need, how much more to save each month and how long your money will last. You can include Social Security or a pension, inflation and a lower return in retirement, and a chart shows your savings year by year. It is free and instant, and your numbers stay in your browser.
Amounts in this guide are in US dollars, and the maths is the same in any currency.
How much money do I need to retire?
The savings you need on the day you retire are the money that will pay the part of your yearly spending that Social Security, a pension or other income does not cover, until the age you plan for. Your spending goes up with inflation each year, while the money you have not spent yet keeps earning a return.
If you are 30 now with $100,000 saved and add $6,000 a year at a 7% return, you would have $2,051,142 at 65, which is $127,005 short. Saving about $71 more a month, or retiring one year later at 66, closes the gap.
How much will my savings grow?
Money saved early has the longest time to grow, because the growth itself earns growth. Here is what $500 a month ($6,000 a year) becomes by age 65 at a 7% yearly return, starting from nothing:
| Start saving at | You put in | Savings at 65 |
|---|---|---|
| 25 | $240,000 | $1,312,407 |
| 35 | $180,000 | $609,985 |
| 45 | $120,000 | $260,463 |
| 55 | $60,000 | $86,542 |
Starting at 25 instead of 35 adds $60,000 of your own money but more than doubles the result.
How much should I save for retirement each month?
Many guides suggest saving 10% to 15% of your income, but the right amount depends on when you start. To reach $1,000,000 by age 65 at a 7% return with nothing saved today, you would need to save about:
- $381 a month if you start at 25
- $820 a month if you start at 35
- $1,920 a month if you start at 45
- $5,778 a month if you start at 55
Enter your own numbers and the calculator shows how much more you need to save each month to reach your goal.
The 4% rule
A popular rule of thumb says you can take out about 4% of your savings in your first year of retirement, then raise that amount with inflation each year, with a good chance of the money lasting 30 years. Turned around, it means you need about 25 times the yearly income your savings must provide: $1,000,000 for $40,000 a year. The rule comes from studies of past US stock and bond returns, so treat it as a guide rather than a promise.
How long will my money last?
How long your savings last depends on how much you take out, the return you earn and inflation. Here is how long $1,000,000 lasts when the first year's withdrawal goes up 3% a year with inflation and the savings earn 5% a year:
| First-year withdrawal | Share of savings | Money lasts about |
|---|---|---|
| $30,000 | 3% | 57 years 1 month |
| $40,000 | 4% | 35 years 7 months |
| $50,000 | 5% | 26 years 2 months |
| $60,000 | 6% | 20 years 9 months |
| $80,000 | 8% | 14 years 8 months |
The calculator shows the age your money runs out in the "Money lasts until" card, and the chart shows your balance year by year.
Inflation and today's money
Prices rise over time, so a dollar in the future buys less than a dollar today. At 3% inflation, $60,000 today is worth the same as $168,832 in 35 years. That is why the calculator asks for the income you need in today's money, and shows your savings at retirement both in future dollars and in today's money: $2,051,142 at 65 is about $728,942 in today's money.
Social Security, pensions and full retirement age
Social Security, a pension or rental income reduce how much your savings have to pay. Enter them as other retirement income in today's money. Your full retirement age for Social Security is 67 if you were born in 1960 or later. You can start your benefit as early as 62, but it is smaller, and waiting until 70 makes it bigger. Your Social Security statement shows an estimate of your own benefit.
401(k), 403(b) and IRA savings
You can use the calculator for any mix of retirement accounts, such as a 401(k), 403(b), 457 or IRA. Add up your balances for your current savings, and include everything you and your employer put in each year, including any employer match, as your annual contribution. If you plan to raise your contribution as your pay grows, use the yearly increase under More options. Contribution limits change each year, and taxes and fees are not included in the results. To see how your employer match and the yearly limit affect a 401(k), use the 401(k) Calculator.
Ways to close a shortfall
- Save more each month. The calculator shows how much more you need.
- Retire a little later. In the example above, retiring at 66 instead of 65 closes the gap.
- Plan to spend a little less in retirement.
- Raise your contribution each year as your pay goes up.
- Wait longer before you start Social Security, so your benefit is bigger.
Retirement in the US, UK, Canada and Australia
In the US, Social Security and savings in a 401(k), 403(b) or IRA are the main sources of retirement income. The maths works in any country and any currency, so you can use it anywhere. Choose your currency in the Currency symbol box at the top of the form, and enter your State Pension, Canada Pension Plan and Old Age Security, or Age Pension as other retirement income. Your savings can be a workplace pension, an RRSP or superannuation.
Sources
The rules, rates and ranges on this page come from these sources. Always check the current figures with the organization itself before you rely on them.
- Retirement age and benefit reduction – Social Security Administration
