How much do you need to retire?
This calculator helps you plan the financial aspects of your retirement.
Assumptions
Optional
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How can you save for retirement?
This calculation presents potential savings plans based on desired savings at retirement.
Savings Plan
How much can you withdraw after retirement?
This calculation estimates the amount you can withdraw every month in retirement.
Withdrawal Plan
How long can your money last?
This calculator estimates how long your savings can last at a given withdrawal rate.
Results
What is Retirement?
To retire is to withdraw from active working life, and for most retirees, retirement lasts the rest of their lives.
Why Retire?
There are many factors at play that ultimately affect a person's decision to retire. Physical or mental health can affect a person's decision to retire; if a worker is not physically strong enough, succumbs to a disability, or has mentally declined too much to perform the duties of their job, they should probably consider retiring, or at the very least try to find a new occupation that better accommodates their health.
How Much to Save for Retirement
Naturally, the next question becomes: how much should a person save for retirement? Simply put, it's an extremely loaded question with very few definite answers.
10% Rule
This rule suggests that a person save 10% to 15% of their pre-tax income per year during their working years.
80% Rule
Another popular rule suggests that an income of 70% to 80% of a worker's pre-retirement income can maintain a retiree's standard of living after retirement.
4% Rule
People who have a good estimate of how much they will require a year in retirement can divide this number by 4% to determine the nest egg required to enable their lifestyle.
Impact of Inflation on Retirement Savings
Inflation is the general increase in prices and a fall in the purchasing power of money over time. The average inflation rate in the United States for the past 30 years has been around 2.6% per year.
Common Sources of Retirement Funds
| Source | Description | Considerations |
|---|---|---|
| Social Security | Government program providing retirement benefits | Designed to replace about 40% of pre-retirement income |
| 401(k), 403(b), 457 Plans | Employer-sponsored retirement plans | Often include employer matching contributions |
| IRA and Roth IRA | Individual retirement accounts | Tax-advantaged savings vehicles |
| Pension Plans | Employer-funded retirement plans | Becoming less common in private sector |
| Personal Investments | Stocks, bonds, mutual funds | No contribution limits but no special tax advantages |