Retirement Calculator 🏖️
Plan your financial future with these comprehensive retirement tools
How Much Do You Need to Retire?
Estimate your retirement savings target and required monthly savings
How Can You Save for Retirement?
Determine the monthly savings needed to reach your retirement goal
How Much Can You Withdraw After Retirement?
Estimate your sustainable monthly withdrawals in retirement
How Long Will Your Money Last?
Estimate how many years your retirement savings will sustain you
Comprehensive Retirement Planning Guide
Understanding Retirement Needs
Retirement planning involves estimating future expenses, accounting for inflation, and creating a sustainable withdrawal strategy. Most financial experts recommend replacing 70-80% of your pre-retirement income to maintain your standard of living. However, this percentage can vary based on your retirement goals, lifestyle choices, and expected expenses.
Key Retirement Planning Rules
10-15% Savings Rule
Save 10-15% of your pre-tax income annually starting in your 20s to build a sufficient retirement nest egg. This includes both personal contributions and employer matches.
4% Withdrawal Rule
Withdraw no more than 4% of your retirement savings annually to ensure your money lasts 30+ years. Adjust this percentage based on market conditions and your life expectancy.
25x Expense Rule
Aim to save 25 times your expected annual retirement expenses. This creates a buffer that aligns with the 4% withdrawal rule for sustainable retirement income.
Retirement Income Sources
| Source | Description | Typical % of Income |
|---|---|---|
| Social Security | Government retirement benefits based on work history | 20-40% |
| Retirement Accounts | 401(k), IRA, pension plans, and other savings | 30-50% |
| Personal Savings | Brokerage accounts, CDs, savings accounts | 10-20% |
| Other Income | Part-time work, rental income, annuities | 0-20% |
Inflation's Impact on Retirement
Purchasing Power Erosion
At 3% annual inflation, prices double every 24 years. A $50,000 retirement income today would need to be $90,000 in 20 years to maintain the same purchasing power.
Inflation-Protected Strategies
- Include stocks in your portfolio for growth potential
- Consider TIPS (Treasury Inflation-Protected Securities)
- Plan for annual cost-of-living adjustments
- Maintain some flexible spending capacity
Common Retirement Planning Mistakes
Savings Shortfalls
- Starting too late to benefit from compound growth
- Not taking full advantage of employer matches
- Underestimating healthcare costs in retirement
- Failing to increase contributions with raises
Withdrawal Risks
- Withdrawing too much too soon
- Not adjusting for market downturns
- Ignoring required minimum distributions
- Failing to plan for tax-efficient withdrawals
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Disclaimer:
This retirement calculator provides estimates based on the inputs provided. Actual results will vary based on market performance, inflation rates, and personal circumstances. The calculator assumes consistent returns and contribution patterns, which may not reflect actual experience. Retirement planning involves many variables - consider consulting with a financial advisor for personalized advice. This tool does not account for taxes, fees, or changes in economic conditions that may affect your retirement plans.