Retirement Savings Calculator

The 4% Rule

The 4% rule says you can safely withdraw 4% of your portfolio in the first year of retirement, then adjust for inflation each year. Based on historical data, this approach has a ~95% success rate over 30-year periods. To find your target, multiply your desired annual income by 25.

Savings Benchmarks by Age

Tax-Advantaged Accounts

• 401(k)/403(b): $23,500 limit (2025). Many employers match 3-6%.
• Traditional IRA: $7,000 limit. Tax-deductible contributions.
• Roth IRA: $7,000 limit. Tax-free growth and withdrawals.
• HSA: $4,300 single / $8,550 family. Triple tax advantage.

Key Strategies

• Always capture the full employer 401(k) match — it's free money.
• Increase savings rate by 1% each year or with every raise.
• Keep investment fees under 0.20% (index funds).
• Don't time the market — consistent investing beats timing.

When to Use This Calculator

• Annual review: Check once a year if your projected savings still hit your retirement income target.
• After a raise: See how increasing monthly contributions by $100-200 moves your retirement date.
• Planning a career change: Model how a salary decrease affects your long-term trajectory.

Real-World Examples

Example 1 — On track: Age 35, $80,000 saved, $600/month contribution at 7% return, retire at 65. Projected: $1.47M. Needed for $60K/year income: $1.5M. Gap: $30K — increase monthly savings by $28/month to close.

Example 2 — Late start: Age 45, $50,000 saved, $1,200/month at 7%, retire at 67. Projected: $836K. Needed for $70K/year: $1.75M. Monthly needed to close gap: $2,450/month total. Consider working 2 extra years or reducing income target.

Limitations & Assumptions

• Uses nominal return — does not subtract inflation separately (use real return ~4-5% for inflation-adjusted results).
• Assumes constant monthly contributions throughout. Gaps in employment are not modeled.
• The 4% rule is based on 30-year retirements; adjust upward if retiring early (e.g., use 3.5% rule for 40+ year retirements).
• Does not include Social Security income — add your projected benefit as a separate offset to the income target.

Data Sources

Savings benchmarks from Fidelity Investments retirement savings guidelines. 4% rule from Bengen (1994) and the Trinity Study. Account contribution limits per IRS Publication 590-A (2025). Return estimates reflect historical S&P 500 returns (Vanguard, 1926-present).

Related Guides

• Financial Planning Basics — the fundamentals of retirement planning, emergency funds, and investing
• Understanding Compound Interest — why starting early matters more than investing more

Related Data

Compare pension fund data and retirement readiness by state at PlainRetire. Explore cost of living data to plan where to retire at PlainCost.

Disclaimer: This calculator provides estimates for educational purposes only. Consult a financial advisor for personalized retirement planning advice.