Retirement Calculator

Are You Saving Enough to Retire?

Retirement planning is the longest financial commitment most people will ever make — spanning decades of saving followed by decades of spending. Yet most Americans don't know whether they're on track. Our retirement calculator projects your retirement savings based on your current age, income, savings rate, existing portfolio, expected returns, and planned retirement age.

The answer to "how much do I need to retire?" depends on your desired lifestyle, location, healthcare costs, Social Security benefits, and how long you expect to live. Our calculator accounts for all of these variables and shows you whether your current savings trajectory meets your goals — or how much you need to adjust.

Quick benchmark: The common rule of thumb is that you need 25 times your expected annual retirement spending saved by the time you retire. If you plan to spend $60,000/year in retirement, you need approximately $1.5 million. This is based on the "4% rule" — withdrawing 4% of your portfolio annually, which historically sustained a 30-year retirement in most market conditions.

How the Calculator Works

The calculator combines compound growth on your existing savings, future contributions with compound growth, estimated Social Security benefits, and inflation adjustment to project your retirement balance at your target retirement age. It then compares this to your spending needs (based on your desired retirement income) to determine whether you'll have enough.

Key inputs: Current age, planned retirement age, current savings, monthly contribution, expected annual return (we default to 7% real return for a stock-heavy portfolio), expected Social Security benefit, and desired annual retirement income.

The 4% rule forms the withdrawal framework. Based on the Trinity Study (1998, updated multiple times), a retiree withdrawing 4% of their portfolio in year one, then adjusting for inflation each year, historically survived at least 30 years in 96% of historical market scenarios. More conservative planners use 3.5% or 3%, while those with flexibility (willing to reduce spending in down markets) may use 4.5%.

Inflation is the silent retirement killer. At 3% annual inflation, $60,000 in today's dollars becomes the equivalent of $36,000 in purchasing power after 17 years. Our calculator shows all projections in today's dollars so you can make meaningful comparisons.

How Much Do You Need to Retire?

The answer varies dramatically based on lifestyle expectations and location. Here are reference points for a 30-year retirement starting in 2026.

Modest retirement ($40,000/year spending): Requires approximately $1 million in savings, assuming Social Security covers $20,000/year and your portfolio provides the remaining $20,000 at a 4% withdrawal rate. This covers basic expenses in a low-to-moderate cost area with minimal travel.

Comfortable retirement ($70,000/year spending): Requires approximately $1.25–$1.75 million, depending on Social Security benefits. This supports a comfortable lifestyle with regular travel, hobbies, dining out, and reliable healthcare coverage.

Affluent retirement ($120,000+/year spending): Requires $2.5–$3+ million. This supports an active lifestyle with significant travel, a higher-cost location, and generous healthcare and leisure spending.

Healthcare costs are the wild card. Fidelity estimates that a 65-year-old couple retiring in 2026 will need approximately $330,000 to cover healthcare costs in retirement (not including long-term care). Medicare covers much but not all — supplemental insurance, dental, vision, hearing, and out-of-pocket costs add up.

Savings Benchmarks by Age

Fidelity's widely cited guidelines suggest saving specific multiples of your salary by certain ages. By age 30, have 1x your annual salary saved. By 40, have 3x. By 50, have 6x. By 60, have 8x. By 67, have 10x.

If you earn $80,000, these benchmarks translate to $80,000 saved by 30, $240,000 by 40, $480,000 by 50, $640,000 by 60, and $800,000 by 67. These assume a 15% savings rate (including employer match), retirement at 67, and a goal of maintaining your pre-retirement lifestyle.

If you're behind, increasing your savings rate is more impactful than chasing higher returns. Going from saving 10% to 15% of your income adds more to your retirement fund than earning an extra 1% annual return in most scenarios. Catch-up contributions (an extra $7,500/year in 401k for those 50+) also help close the gap.

If you're ahead, you may be able to retire earlier, take more risk reduction in your portfolio, or plan for a more comfortable retirement. Don't let "ahead of the benchmark" lead to complacency — healthcare costs, unexpected expenses, and longer lifespans (due to medical advances) can consume surpluses.

Retirement Account Types

401(k) and 403(b): Employer-sponsored plans with 2026 contribution limits of $23,500 (plus $7,500 catch-up for age 50+). Traditional versions offer tax-deductible contributions and tax-deferred growth. Roth versions accept after-tax contributions but allow tax-free withdrawals in retirement. Many employers match contributions up to 3–6% of salary — this is free money you should always capture fully.

Traditional IRA: Contributions may be tax-deductible (depending on income and whether you have an employer plan). 2026 contribution limit is $7,000 (plus $1,000 catch-up for 50+). Growth is tax-deferred; withdrawals are taxed as ordinary income. Required minimum distributions (RMDs) begin at age 73.

Roth IRA: Contributions are after-tax but withdrawals in retirement are completely tax-free — including all investment gains. Income limits apply for direct contributions ($161,000 MAGI for single filers, $240,000 for married filing jointly in 2026). No RMDs during the owner's lifetime. The Roth is often the best retirement vehicle for younger workers who expect higher future tax rates.

HSA (Health Savings Account): Available with high-deductible health plans. The HSA is sometimes called the "stealth retirement account" — contributions are tax-deductible, growth is tax-free, and withdrawals for qualified medical expenses are tax-free. After age 65, withdrawals for any purpose are taxed like a traditional IRA (but without penalty). 2026 contribution limits are $4,300 individual / $8,550 family.

Common Retirement Planning Mistakes

Starting too late. Every year you delay costs you exponentially more. Starting at 25 with $500/month at 7% return gives you $1.3 million by 65. Starting at 35 requires $1,050/month to reach the same amount — more than double the monthly contribution for the same result.

Underestimating healthcare costs. Many pre-retirees assume Medicare covers everything. It doesn't — premiums, copays, dental, vision, hearing, prescription drugs, and potential long-term care can cost $10,000–$20,000+ per year even with Medicare.

Ignoring inflation. A retirement plan built on today's dollar values without inflation adjustment will leave you short. At 3% inflation, you'll need $181,000 in 20 years to buy what $100,000 buys today.

Over-concentrating in company stock. Holding more than 10–15% of your retirement portfolio in your employer's stock creates dangerous concentration risk. If the company struggles, you could lose your job and a major portion of your savings simultaneously.

Taking Social Security too early. Benefits can be claimed starting at 62, but they're permanently reduced — 30% less than waiting until full retirement age (67). Delaying to 70 increases benefits by 24% beyond full retirement age. For each year you delay between 62 and 70, benefits increase by approximately 7–8% — one of the best guaranteed returns available.