Retirement planning shouldn’t be overwhelming. With our easy-to-use retirement calculator, you can get a clearer picture of your financial future and make more informed decisions about your savings. Whether you’re decades from retirement or just a few years away, this tool can help you assess if you’re on track to reach your goals—and if not, how to make adjustments now.
Having a plan for retirement goes beyond setting a savings target; it’s about peace of mind. Our retirement calculator can help you estimate both the savings you’ll accumulate (“What You’ll Have”) and the funds you’ll likely need (“What You’ll Need”) by the time you retire. From salary increases to inflation and rates of return, this tool considers the financial details that could impact your retirement journey.
Let’s walk through how to get the most out of the calculator and the key factors to consider.
Our calculator uses your personal data to estimate how much you’ll save by retirement age and compares it to your projected financial needs. Here’s what it factors in to give you a customized snapshot of your retirement outlook:
Current age and savings: Enter your age and the current total of all retirement accounts, including 401(k) plans, IRAs, and other savings earmarked for retirement.
Income and monthly contributions: Provide your annual income (before taxes) and how much you save for retirement each month. This calculator translates your monthly savings into a percentage of your income to help you see how much you’re putting away relative to your earnings.
Growth estimates: It uses a default annual return rate of 6% before retirement, dropping to 5% after you retire. However, you can adjust these rates in the “Advanced Details” section if you want a more tailored estimate.
Inflation and salary growth: Our default assumptions include a 3% annual inflation rate and a 2% salary increase each year, which impact your future expenses and income.
Retirement age and life expectancy: Planning for a longer life expectancy is wise. This calculator’s default settings estimate a retirement age of 67 (the Social Security full retirement age for most people) and a life expectancy of 95, helping ensure your savings last throughout retirement.
Getting accurate results starts with knowing what to enter. Here’s a guide to each field you’ll need to fill out:
Annual Pre-Tax Income: Include all sources of income you earn before taxes, such as salary, freelance work, or business earnings.
Current Retirement Savings: Sum up the balances of all retirement accounts you currently have, including any 401(k) plans, IRAs, and other retirement-focused investments.
Monthly Contribution: This is the amount you contribute to retirement savings each month. Include contributions to your 401(k) (including employer match), IRA, or any other retirement accounts. Many financial advisors recommend saving between 10% and 15% of your income for retirement.
Monthly Budget in Retirement: Think about how much you’ll need monthly to live comfortably in retirement. This number can be based on your current spending adjusted for retirement changes, such as fewer commuting costs but potentially higher healthcare expenses.
Other Retirement Income: This optional field allows you to input other expected income sources during retirement, like Social Security, pensions, or passive income. Use our Social Security calculator to estimate your potential benefits.
For a more tailored retirement plan, you can adjust the default assumptions. In the “Advanced Details” section, you can set:
Retirement Age: Your chosen retirement age can impact how much you’ll need to save and how long those funds must last. The default age is 67, but you can modify this based on your retirement vision.
Life Expectancy: Consider aiming high to ensure your savings last. We default to an expectancy of 95, which provides a buffer for those who may live longer than average.
Pre- and Post-Retirement Rates of Return: Our calculator defaults to a 6% return before retirement and 5% during retirement, but these rates are adjustable. Keep in mind that risk tolerance and investment choices affect your rate of return.
As a general rule, many financial experts suggest planning to replace about 70% of your pre-retirement income during retirement. The assumption here is that your expenses will drop once you’re no longer working, but that number isn’t set in stone. Consider factors unique to your lifestyle, like travel plans, hobbies, or whether you plan to downsize your home, which might influence your retirement budget.
For 2025, the IRS announced that IRA contribution limits will remain the same, with a maximum of $7,000 ($8,000 if you’re 50 or older). However, the 401(k) contribution limit is increasing, giving you more room to save if you’re a 401(k) contributor. Be sure to check the latest limits and adjust your contributions as needed to maximize your tax-advantaged savings.
A retirement calculator is a powerful tool because it provides clarity on where you stand and what adjustments are needed to reach your goals. By breaking down your income, contributions, growth rates, and other variables, the calculator helps you make informed choices, whether that means adjusting your monthly contributions or re-evaluating your retirement age.
Remember, these estimates are meant to provide a guideline, not an exact figure. The more you understand your financial needs, the more empowered you’ll be to take action.
1. Review Your Monthly Contributions: Are you saving enough to meet your goal? If not, consider increasing your monthly contributions. Even a slight increase can have a significant long-term impact.
2. Revisit Your Retirement Goals Annually: Retirement planning is dynamic. Factors like income, expenses, and market performance change, so make it a habit to revisit your retirement plan annually and adjust as needed.
3. Consider Talking to a Financial Advisor: Personalized advice from a financial advisor can help refine your retirement strategy, particularly as you approach your planned retirement age. They can provide insights tailored to your financial situation and future goals.
4. Use Other Tools to Supplement Your Planning: Our Social Security calculator and other resources can help you piece together a comprehensive retirement picture. Multiple sources of income can help support a stable retirement, so it’s worth exploring every available avenue.
Retirement is a journey, and planning for it shouldn’t feel overwhelming. Our retirement calculator is here to make that journey clearer, giving you the insights you need to confidently step toward your future. Start today, and empower yourself with the knowledge to make the most of your golden years.