🔗 Use full-page Retirement Calculator here for best experience
How Much Do You Need to Retire?
The most common rule of thumb is the 25x rule: you need 25 times your expected annual expenses saved to retire comfortably. This is based on the 4% safe withdrawal rate — the percentage of your portfolio you can withdraw annually without running out of money over a 30-year retirement.
| Annual Expenses | Nest Egg Needed |
|---|---|
| $30,000 | $750,000 |
| $50,000 | $1,250,000 |
| $75,000 | $1,875,000 |
| $100,000 | $2,500,000 |
How to Use the Retirement Calculator
- Enter your current age and target retirement age
- Enter your current savings — 401(k), IRA, pension, investments
- Add your monthly contribution — what you contribute today
- Set expected annual return — 7% is a common real-return assumption for diversified portfolios
- Adjust inflation rate — typically 2–3%
- Review the 4% withdrawal rate — how much you’d draw monthly in retirement
Understanding the Results
Projected Nest Egg (Nominal)
The raw projected value of your portfolio at retirement — before adjusting for inflation.
Inflation-Adjusted Value
What your nest egg is worth in today’s dollars. This is the more meaningful number for planning purposes. At 2.5% inflation over 30 years, $1M in the future is worth only about $480,000 today.
Monthly Retirement Income
At the 4% safe withdrawal rate, the estimated monthly income your portfolio could sustainably provide throughout a 30-year retirement.
The 4% Rule Explained
The 4% rule comes from the “Trinity Study” — research showing that a portfolio of 50% stocks and 50% bonds could sustain a 4% annual withdrawal for 30+ years in nearly all historical market conditions.
Example: $1,000,000 portfolio × 4% = $40,000/year = $3,333/month
How Much Should You Save?
A common benchmark is to save 10–15% of your gross income for retirement. Higher earners starting later may need 20–25%.
| Starting Age | Suggested Savings Rate |
|---|---|
| 20s | 10–15% |
| 30s | 15–20% |
| 40s | 20–25% |
| 50s | 25–30%+ |
Common Retirement Planning Mistakes
- Starting too late — the compounding effect means every decade of delay roughly doubles the monthly savings needed
- Cashing out 401(k) when changing jobs — this triggers taxes AND penalties AND destroys years of compounding
- Underestimating healthcare costs — healthcare in retirement can cost $300,000+ for a couple
- Ignoring Social Security — it won’t cover everything, but it significantly supplements your savings
- Not accounting for inflation — a lifestyle costing $50K/year today will cost ~$90K in 20 years at 3% inflation
Related Tools:
- Compound Interest Calculator — model investment growth
- Savings Goal Calculator — calculate time to any savings target
- Mortgage Calculator — factor in housing costs