How This Retirement Calculator Works
This calculator projects your retirement savings based on your current age, savings rate, and expected investment returns. It then compares your projected nest egg to the amount needed to generate your desired annual income using the safe withdrawal rate.
See how compound growth builds your nest egg over time with our Compound Interest Calculator.
The 4% Rule and Safe Withdrawal Rates
The 4% rule comes from William Bengen's research and the Trinity Study: withdraw 4% of the portfolio in year one, adjust for inflation thereafter, and historical US stock/bond mixes often sustained 30-year retirements. This calculator defaults to 4% for the target nest egg and sustainable income lines.
To find how much you need: divide desired annual income by your withdrawal rate. At 4%, $60,000 per year requires $1,500,000 ($60,000 ÷ 0.04). At Morningstar's 2026 base-case starting rate of 3.9% for new retirees with a 30-year horizon, the same $60,000 needs about $1,538,000.
Longer retirements (FIRE at 40 or 50) often use 3.5% or flexible spending rules instead of a fixed real withdrawal. Morningstar also models flexible strategies above 5% for retirees who can trim spending in bad years.
Source Morningstar, safe withdrawal rate research (Feb. 18, 2026). Checked October 2026. 3.9% is Morningstar's fixed real withdrawal base case for new 2026 retirees; the 4% rule remains a common planning default.
How Much Do You Actually Need?
Fidelity publishes age-based savings factors (multiples of current salary) assuming 15% annual savings from age 25, retirement at 67, and no pension:
- Age 30: 1× salary
- Age 35: 2× salary
- Age 40: 3× salary
- Age 45: 4× salary
- Age 50: 6× salary
- Age 55: 7× salary
- Age 60: 8× salary
- Age 67: 10× salary
On a $90,000 salary, 3× at 40 means about $270,000 in retirement accounts; 10× at 67 means $900,000 — a checkpoint separate from this calculator's spending-based target. Pension income, lower spending, or later retirement change the number you actually need.
Source Fidelity Viewpoints, How much do I need to retire? (Sept. 25, 2026). Checked October 2026.
Case Study: Linda, 42, Targeting Retirement at 62
Linda earns $95,000 per year and wants $70,000 of annual spending in retirement (about 74% of today's pre-tax income). Using the 4% rule, her portfolio target is $70,000 ÷ 0.04 = $1,750,000. She already has $142,000 in her 401(k) and Roth IRA combined and contributes $950 per month ($11,400 per year), including a 4% employer match on the first 6% of salary.
At 7% returns, her balance and $950 monthly contributions grow to about $1.07 million by 62 — roughly $681,000 below the $1.75 million target. The calculator shows about $2,258 per month of total savings (including her $950) to hit the goal on time — an extra $1,308 per month, not a small tweak. Retiring at 63 with unchanged $950 contributions reaches about $1.16 million, or she can cut spending to $65,000 ($1.625 million target) and still need more than $950 per month. She uses this calculator to test each lever. For aggressive early-retirement targets, pair those runs with our FIRE Calculator and the Savings Goal Calculator to back into monthly savings for a fixed deadline.
Nest Egg Targets by Retirement Age
The table below assumes you want $65,000 per year from investments (not including Social Security or a pension). Earlier retirement usually requires a larger portfolio or a lower withdrawal rate because money must last longer.
| Retire at age | Typical withdrawal rate | Portfolio needed ($65k/yr) |
|---|---|---|
| 55 | ~3.25% | ~$2,000,000 |
| 60 | ~3.5% | ~$1,860,000 |
| 65 | 4% | ~$1,625,000 |
| 67 | 4% | ~$1,625,000 |
With the calculator's default inputs (age 30, retire at 65, $50,000 saved, $1,000 per month, 7% return, $60,000 desired income, 4% withdrawal), the projection is about $2.38 million versus a $1.5 million target — on track with roughly $95,000 per year of sustainable income at 4%. At 67, full Social Security replaces part of that need: SSA estimates the average retired-worker benefit at $2,170 per month in January 2027 after the 3.6% COLA, so $65,000 from investments might stack on top of about $26,000 in benefits rather than replace an entire paycheck.
Retirement Account Types
401(k) / 403(b)
Employer-sponsored plans with tax-deferred growth. 2026 contribution limit: $24,500 ($32,500 if age 50+). Many employers match a percentage of your contributions — this is essentially free money.
Traditional IRA
Contributions may be tax-deductible. Growth is tax-deferred until withdrawal. 2026 limit: $7,500 ($8,600 if 50+). Best if you expect to be in a lower tax bracket in retirement.
Roth IRA
Contributions are made with after-tax dollars, but growth and withdrawals are tax-free. Same contribution limits as Traditional IRA. Best if you expect to be in a higher tax bracket in retirement or want tax-free income flexibility.
Not sure which account to use? Compare options in our guide: 401(k) vs Roth IRA: Which Is Better for You?
HSA (Health Savings Account)
Triple tax advantage: tax-deductible contributions, tax-free growth, and tax-free withdrawals for medical expenses. After age 65, can be used for any expense (taxed like a traditional IRA). 2026 limit:$4,400 self-only / $8,750 family.
Sources IRS IR-2025-111, 2026 retirement plan limits (Nov. 13, 2025), IRS Rev. Proc. 2025-19 (2026 HSA limits). Checked October 20, 2026.
Maximizing Your Retirement Savings
- Capture your full employer match — this is an immediate 50-100% return on your money.
- Increase contributions with every raise — if you get a 3% raise, put 2% more toward retirement. You'll never miss money you never had.
- Keep fees under 0.3% — choose low-cost index funds. A 1% fee vs 0.1% fee can cost you hundreds of thousands over a career.
- Don't touch it early — early withdrawals incur a 10% penalty plus income taxes. Leave it invested.
- Rebalance annually — maintain your target asset allocation to manage risk as you age.
Social Security Considerations
Full retirement age is 67 for workers born in 1960 or later. Claiming at 62 permanently reduces the monthly benefit by about 30% versus waiting until 67; delaying to 70 adds up to 24% above the full retirement age amount. SSA's estimate for the average retired-worker benefit in January 2027 is $2,170 per month after the 3.6% COLA ($2,095 before it); the September 2026 statistical snapshot shows $2,089 for retired workers in current payment status.
For planning, download your my Social Security statement for a personal estimate, then decide how much portfolio income must cover healthcare, travel, and housing. Many planners treat Social Security as a partial offset, not the entire income floor.
Sources SSA, 2027 COLA fact sheet (Oct. 2026), SSA Monthly Statistical Snapshot, September 2026. Checked October 2026.
Frequently Asked Questions
What return rate should I assume?
For a diversified portfolio, 7% (after inflation) is a common assumption for stocks over long periods. If you want to be more conservative, use 5-6%. For a mix of stocks and bonds, 5-6% is appropriate.
When should I start saving for retirement?
Now. Every decade you delay roughly doubles the monthly amount you need to save. Starting at 25 versus 35 means needing to save about half as much per month to reach the same retirement target.
Can I retire early?
Yes, with the FIRE (Financial Independence, Retire Early) approach. This typically requires saving 50-70% of income and accumulating 25-33x your annual expenses. Many FIRE adherents retire in their 40s or 50s by maintaining low expenses and high savings rates.
Planning to retire before 60? Read our guide: How Much Do I Need to Retire at 55?