Plan your retirement by projecting savings growth and estimating how long your money will last.
Include any employer match
4% is the classic rule of thumb
Enter your current age and the age you plan to retire, what you have saved for retirement so far, and how much you add each month (include any employer match). Then set the average annual return you expect before retirement, the inflation rate, and the share of your savings you plan to withdraw each year once retired.
The calculator projects your nest egg with monthly compounding, then shows the income it could support both in future dollars and in today’s dollars, which is the better figure to compare with your current budget. Social Security and pensions are not included — add them separately.
Nest egg = S(1 + r)ⁿ + PMT × [(1 + r)ⁿ − 1] / rAnnual income = Nest egg × withdrawal rateToday’s dollars = Future value ÷ (1 + inflation)^yearsS = current savings, PMT = monthly contribution, r = annual return ÷ 12, n = months until retirement.
A common starting point is to estimate the annual income you will need in retirement, subtract expected Social Security or pension income, and multiply the gap by 25 — the inverse of the 4% rule. Many planners also suggest replacing roughly 70–80% of your pre-retirement income.
The 4% rule comes from historical studies (notably the 1990s Trinity study) showing that withdrawing 4% of a balanced portfolio in the first year, then adjusting for inflation, would have lasted at least 30 years in most past market conditions. It is a guideline, not a guarantee; retiring early or in a weak market may call for a lower rate.
A widely used guideline is to save about 15% of your gross income for retirement, including any employer match. Fidelity’s rule of thumb is to aim for about 10 times your salary saved by age 67.
For 2025, employees can defer up to $23,500 into a 401(k), 403(b) or most 457 plans, plus a $7,500 catch-up contribution at age 50 or older (an $11,250 catch-up applies at ages 60–63). The IRA limit is $7,000, plus $1,000 catch-up at 50+. Limits are adjusted for inflation each year.
Prices rise over time, so $1 million in 35 years will buy much less than $1 million today. Dividing by the cumulative inflation over your saving period shows what the projected nest egg and income are worth in current purchasing power.
A common rule of thumb is to replace 70–80% of your pre-retirement income. If you earn $80,000/year, target $56,000–$64,000 in annual retirement income. With Social Security covering roughly $20,000, you need savings to generate $36,000–$44,000/year. Using the 4% rule, that requires $900,000–$1,100,000 in savings.
A 401(k) allows pre-tax contributions up to $23,500/year (2025) with employer matching. Traditional IRAs offer tax-deductible contributions up to $7,000/year. Roth IRAs use after-tax dollars but grow completely tax-free. The best strategy often combines multiple account types for tax diversification in retirement.
Did you know?
According to Fidelity, you should aim to save 10x your annual salary by age 67 for a comfortable retirement. Yet the median retirement savings for Americans aged 55–64 is only about $134,000.
The concept of retirement is relatively modern. Before the 20th century, most people worked until they physically could not. The first national pension system was created by Otto von Bismarck in Germany in 1889, setting the retirement age at 70 (later reduced to 65). In the US, Social Security was established in 1935 during the Great Depression.
The 4% rule suggests you can safely withdraw 4% of your retirement savings annually (adjusted for inflation) with a low risk of running out of money over 30 years.
Social Security was never designed to be your sole retirement income — it replaces only about 40% of pre-retirement earnings for average workers.
Healthcare costs in retirement are estimated at $315,000 per couple (not including long-term care), making it one of the largest retirement expenses.
The average retirement in the US lasts approximately 18 years, but many retirees live 25–30+ years after leaving the workforce.