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Retirement Calculator

Plan your retirement savings and estimate future income needs

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Retirement Planning & Savings Guide

A retirement calculator projects savings growth, withdrawal plans, and retirement age based on your contributions, rate of return, and spending goals. It estimates how long your money may last under different assumptions.

What is Retirement Calculator?

The retirement calculator models pre-retirement contributions and post-retirement withdrawals, including inflation and tax inputs, so you can align savings with your target lifestyle and date.

How to Use the Retirement Calculator

  1. Enter current savings, monthly contribution, and expected return.
  2. Set retirement age and spending goal in today's dollars.
  3. Add inflation and tax assumptions to view real after-tax results.
  4. Calculate your projected balance at retirement and safe starting withdrawal.
  5. Adjust sliders (savings rate, retirement age, return) to test scenarios.

Formulas & Methods

  • Accumulation (end-of-period): FV = P*(1 + r/n)^(n*t) + PMT*(((1 + r/n)^(n*t) - 1)/(r/n)).
  • Real returns: 1 + r_real = (1 + r_nominal)/(1 + inflation) then minus 1.
  • Withdrawal plan: start with 4% rule or custom rate; inflation-adjust annually.
  • Sustainability: simulate horizon H with return r and withdrawal w to estimate depletion year (deterministic) or run Monte Carlo (if available).

Assumptions & limitations

  • Investment returns are uncertain; results depend on chosen rates.
  • Taxes vary by jurisdiction and account type; use rough averages.
  • The 4% rule is a heuristic from historical US data; adjust for your context.

Examples

Example A — Baseline plan
Current P=$120,000, r=6%, n=12, t=20, PMT=$900/mo → FV ~ $593,000.
At retirement, a 4% starting withdrawal → ~$23,700/yr (before tax).

Example B — Increase savings
Add $200/mo and delay retirement by 2 years → projected FV increases notably; check the tool for exact impact.

| Input | Value | |---|---:| | Current savings | $120,000 | | Monthly contrib | $900 | | Return | 6% | | Years | 20 | | Projected FV | ~$593,000 |

Pro Tips & Best Practices

  • Capture full employer match before extra debt payments (unless very high APR).
  • Increase savings rate with each raise to avoid lifestyle creep.
  • Diversify and keep fees low; small fee reductions compound.
  • Hold a cash buffer for downturns to avoid selling at lows.
  • Revisit annually to reflect new income, expenses, and goals.

Related Calculators

FAQ

Q: How much do I need to retire?

A: Estimate annual spending in retirement, subtract guaranteed income, and solve for the savings needed to cover the gap with withdrawals.

Q: What withdrawal rate is safe?

A: A 4% starting withdrawal is a common rule of thumb; adjust for horizon, risk tolerance, and market conditions.

Q: How do taxes and inflation factor in?

A: Model pre/post-tax accounts separately and apply an inflation rate to see real purchasing power.

Q: Should I prioritize contributions or paying debt?

A: High-interest debt typically comes first; contribute at least enough to capture employer matching.

Q: Can I retire early?

A: Increase savings rate, reduce expenses, and invest efficiently; the calculator shows how changes shift your timeline.

Compliance note: This article is for information only and not financial advice.

Call to Action

Enter your savings, contributions, and goal spending—see if you are on track and what levers to pull to reach the retirement you want.