Find out if you are on track for retirement. Enter your current savings, contributions and goals to see your projected nest egg, monthly income in retirement, and how long your money will last.
Your Situation
Return Assumptions
In Retirement
This calculator uses compound interest to project your retirement savings. Each year, your existing savings grow at the expected annual return, and your monthly contributions are added. The projection accounts for inflation to show results in today's purchasing power.
FV = future value PV = current savings r = monthly return n = months PMT = monthly contribution
The 4% rule (Bengen, 1994) suggests you can withdraw 4% of your portfolio per year in retirement with a high probability of your savings lasting 30+ years. This means a $1,000,000 portfolio supports $40,000/year or $3,333/month. The rule is a guideline, not a guarantee.
| Age | Savings Target | Based on Annual Salary |
|---|---|---|
| 30 | 1× annual salary | e.g. $60,000 saved if earning $60,000 |
| 40 | 3× annual salary | e.g. $180,000 saved if earning $60,000 |
| 50 | 6× annual salary | e.g. $360,000 saved if earning $60,000 |
| 60 | 8× annual salary | e.g. $480,000 saved if earning $60,000 |
| 67 | 10× annual salary | e.g. $600,000 saved if earning $60,000 |
401(k) / 403(b): Employer-sponsored plans. Contributions are pre-tax, reducing taxable income now. Annual contribution limit applies. Many employers offer matching: this is essentially free money.
Traditional IRA: Individual Retirement Account. Pre-tax contributions (income limits apply). Tax-deferred growth. Taxed on withdrawal in retirement.
Roth IRA / Roth 401(k): Contributions made with after-tax dollars. Growth and qualified withdrawals are completely tax-free. Excellent if you expect to be in a higher tax bracket in retirement.