How much do I need to retire?

A common rule is 25x your annual expenses (4% withdrawal rule). If you spend $40k/year, you need $1 million. Another approach: 10-12x your annual income by retirement age. Use our retirement calculator to get a personalized estimate based on your situation.

What is the 4% withdrawal rule?

The 4% rule suggests withdrawing 4% of your retirement savings annually. With $1 million, withdraw $40k/year. Historical data shows this approach has a high success rate of lasting 30+ years without running out of money.

When should I start saving for retirement?

Start as early as possible - ideally in your 20s. Thanks to compound interest, money invested at 25 grows much more than money invested at 35. Even small amounts ($100-200/month) in your 20s can become substantial by retirement.

How much should I contribute to my 401k?

At minimum, contribute enough to get full employer match (typically 3-6%). Ideally, contribute 15-20% of income including employer match. Max out 401k ($23,000 in 2024) if possible. Prioritize Roth IRA for $7,000 more annually.

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🏖️

Retirement Calculator

Calculate how much you need to save for retirement based on your goals

Your Information

Current Age

Retirement Age

Current Retirement Savings

401k, IRA, and other retirement accounts

Monthly Contribution

$12,000 per year

Expected Annual Return

Conservative: 5%, Moderate: 7%, Aggressive: 10%

Desired Monthly Retirement Income

$60,000 per year

🏖️ Retirement Tips

• Max out employer 401k match - it's free money
• Contribute to Roth IRA for tax-free growth
• Start early - compound interest is powerful
• Plan for 70-80% of pre-retirement income
• Consider healthcare costs in retirement

Retirement Savings at 65

Total Savings

$2,376,362

In 35 years

Your Contributions$470,000

Investment Growth$1,906,362

ROI405.6%

Monthly Income in Retirement

Based on 4% withdrawal rate

$7,921

per month

Your Goal$5,000

Projected Income$7,921

✅ You're on track! Surplus: $876,362

Retirement Timeline

Years Until Retirement35 years

Expected Years in Retirement25 years

Life Expectancy90 years

Total Retirement Income$2,376,362

🎯 Savings Milestones

Fidelity's retirement savings guidelines

⚠️

Age 30

1x annual income

$60k

⏳

Age 40

3x annual income

$180k

⏳

Age 50

6x annual income

$360k

⏳

Age 60

10x annual income

$600k

⏳

Age 65

12x annual income

$720k

How the Retirement Calculator Works

This calculator helps you determine if you're saving enough for retirement and projects your future retirement income.

Key Calculations:

• Future Value = Current Savings × (1 + r)^n + Monthly Contributions × compound growth
• Retirement Income = Total Savings × 4% ÷ 12 (4% safe withdrawal rule)
• Target Savings = Desired Annual Income × 25 (for 4% withdrawal)

Retirement Savings Milestones:

• Age 30: 1x annual salary saved
• Age 40: 3x annual salary saved
• Age 50: 6x annual salary saved
• Age 60: 10x annual salary saved
• Age 65: 12x annual salary saved (or 25x annual expenses)

Important Assumptions:

• 4% safe withdrawal rule (Trinity Study)
• Life expectancy: 90 years (adjust based on health/family history)
• Returns: Conservative 5%, Moderate 7%, Aggressive 10%
• Does not include Social Security or pension income
• Does not account for inflation (use today's dollars)

Pro Tips: Max out employer 401k match first (free money!), then contribute to Roth IRA for tax-free growth. Starting early is the best strategy - a 25-year-old investing $500/month at 7% will have $1.3M by 65, while a 35-year-old needs $1,000/month to reach the same goal.

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