🏖️ Retirement Savings Calculator
Project your retirement nest egg, estimate monthly retirement income with the 4% rule, and plan your path to financial freedom.
Annual Income
Monthly Income
Impact of Inflation on Your Savings
Due to 3% annual inflation, your $1.5M nest egg will have the purchasing power of only $600,000 in today's dollars when you retire.
| Age | Year | Contributions | Growth | Balance |
|---|
How Much Do You Need to Retire?
The most widely accepted retirement planning guideline is the 4% Safe Withdrawal Rule, developed from the 1994 Trinity Study. It states that you can withdraw 4% of your retirement portfolio in the first year of retirement, then adjust for inflation each year after, with a very high probability of your money lasting 30+ years.
Annual Retirement Income = Nest Egg × 0.04Monthly Retirement Income = (Nest Egg × 0.04) ÷ 12Working Backward — Your "Retirement Number":
Required Nest Egg = Desired Annual Income × 25Example: To generate $60,000/year → $60,000 × 25 =
$1,500,000
How Much Should You Have Saved by Age? (Fidelity Guidelines)
| Age | Recommended Savings | Example ($75K Salary) |
|---|---|---|
| 30 | 1× annual salary | $75,000 |
| 35 | 2× annual salary | $150,000 |
| 40 | 3× annual salary | $225,000 |
| 45 | 4× annual salary | $300,000 |
| 50 | 6× annual salary | $450,000 |
| 55 | 7× annual salary | $525,000 |
| 60 | 8× annual salary | $600,000 |
| 67 | 10× annual salary | $750,000 |
Tax-Advantaged Retirement Accounts by Country (2024)
🇺🇸 United States
- 401(k): Contribute up to $23,000/year ($30,500 if 50+). Many employers match 3–6% — that's free money.
- Traditional IRA: $7,000/year ($8,000 if 50+), tax-deductible contributions.
- Roth IRA: $7,000/year, contributions are after-tax but all growth and withdrawals are tax-free.
🇬🇧 United Kingdom
- Workplace Pension: Auto-enrollment minimum of 8% (5% employee + 3% employer).
- SIPP / Personal Pension: Up to £60,000/year annual allowance with tax relief.
- ISA: £20,000/year tax-free growth (not a pension, but flexible).
🇨🇦 Canada
- RRSP: 18% of previous year's income up to ~$31,560, tax-deductible.
- TFSA: $7,000/year, completely tax-free growth and withdrawals.
🇦🇺 Australia
- Superannuation: Mandatory 11.5% employer contribution (rising to 12% in 2025).
- Concessional Contributions: Up to $30,000/year at just 15% tax rate.
5 Rules of Thumb for Retirement Planning
- The 25× Rule: Save 25 times your desired annual retirement spending.
- The 4% Rule: Withdraw 4% annually to make money last 30+ years.
- The 15% Rule: Save at least 15% of your gross income for retirement (including employer match).
- The 80% Rule: Plan to replace 70–80% of your pre-retirement income.
- The Rule of 72: Divide 72 by your return rate to find how fast money doubles (8% → 9 years).
Frequently Asked Questions
Using the 4% rule, $1 million generates $40,000/year ($3,333/month). Combined with Social Security (average ~$1,900/month in the US), many retirees live comfortably. However, in high cost-of-living areas or for longer retirements (30+ years), most advisors recommend $1.5M–$2M for a couple.
The 4% rule says you can withdraw 4% of your portfolio in year one of retirement, adjusted for inflation thereafter, with ~95% historical success over 30 years. Some modern analysts suggest 3.3%–3.5% for extra safety given lower expected future returns and longer lifespans.
Follow this order: (1) Pay minimums on all debt, (2) Capture your full employer 401(k) match — it's an instant 100% return, (3) Pay off high-interest debt above 7% APR, (4) Max out retirement accounts, (5) Pay off low-interest debt like mortgages last.
At 3% average inflation, prices double roughly every 24 years. A $1 million nest egg accumulated over 35 years will only have the purchasing power of about $355,000 in today's dollars. This is why your investments must outpace inflation — a savings account earning 1% while inflation runs at 3% means you're losing 2% of real value every year.
Traditional (401k/IRA): Tax deduction now, pay income tax on withdrawals in retirement. Best if you're in a higher tax bracket now. Roth: No deduction now, but 100% tax-free growth and withdrawals. Best for younger savers in lower brackets who expect higher income later.