Retirement Savings Calculator Guide

Planning for retirement is a marathon, not a sprint. This calculator helps you determine if your current savings strategy will provide enough income for your golden years.

How to Use This Calculator

Current Age & Retirement Age: Define your timeline.
Current Savings: Enter your 401(k), IRA, and other investment balances.
Annual Income & Savings Rate: How much do you earn and what percentage do you save?
Investment Return: Estimate your portfolio growth (historically 7-8% adjusted for inflation is optimistic; 5-6% is conservative).

Worked Examples

Example 1: The Late Starter

Scenario: James is 45 and has $50,000 saved. earning $100,000/yr. He decides to aggressively save 20% annually to retire at 67. Inputs: Age: 45 to 67 (22 years) Current: $50,000 Savings: $20,000/yr (20%) Return: 7% Results: Future Value of Current: ~$220k Future Value of Contribs: ~$980k Total at Retirement: ~$1.2 Million Safe Withdrawal (4%): $48,000/year (plus Social Security) — Doable!

Example 2: Financial Independence (FIRE)

Scenario: Emma is 25, earns $80,000, and saves 50% ($40k). She wants to retire at 45. Inputs: Age: 25 to 45 (20 years) Current: $0 Savings: $40,000/yr Return: 6% Results: Total at Retirement: ~$1.47 Million Safe Withdrawal: ~$59,000/year. Since her expenses are low ($40k/yr), she is Financially Independent.

Tips for Success

Increase Savings with Raises: When you get a raise, send half of it directly to savings before you get used to spending it. Watch Fees: High expense ratios in mutual funds eat into your retirement. Choose low-cost index funds.

Glossary

Safe Withdrawal Rate: The percentage of your portfolio you can withdraw annually without running out of money (commonly 4%). 401(k) Match: Free money from your employer. Always contribute enough to get the full match. * Vesting: The period of time you must work before you own employer contributions.

Retirement Savings & Withdrawal Planner

Inputs

Related Calculators

Retirement Income Calculator

401(k) Calculator

IRA Calculator

Pension Calculator

Social Security Calculator

Retirement Withdrawal Calculator

Calculated by CalcuFinance Team

Sources & References