How much is enough depends on when you retire, how long the money must last and what it will cost to live. Project your savings, compare them with the nest egg your income goal requires, and see any additional saving needed.
How it works
Project savings to retirement, estimate the nest egg needed to fund inflation-adjusted income through your planning age, and calculate any additional annual saving required.
Accumulation: Balance(t+1) = Balance(t) × (1 + r₁) + Contribution(t); Contribution grows each year
Income gap = Desired income − Social Security / pension (today’s dollars)
Withdrawal(k) = Income gap × (1 + inflation)^(years to retirement + k)
Required nest egg = Σ Withdrawal(k) ÷ (1 + r₂)^k
Additional saving = Shortfall ÷ Σ (1 + g)^j × (1 + r₁)^(Y − 1 − j)Common uses
- Personal retirement planning
- Testing retirement age and savings-rate scenarios
- Financial literacy and employee benefits education
Worked example
The calculator above opens with this example. Change any input to see the results update instantly, or select Reset to return to these figures.
| Current age | 45 |
| Retirement age | 65 |
| Plan to age | 92 |
| Current retirement savings | $280,000 |
| Annual contribution | $18,000 |
| Contribution growth per year | 3% |
| Return before retirement | 6.5% |
| Return during retirement | 5% |
| Inflation | 2.5% |
| Desired annual income (today’s dollars) | $90,000 |
| Social Security / pension (today’s dollars) | $30,000 |
| Projected savings at retirement | $1,869,924 |
| Required nest egg | $1,974,989 |
| Projected shortfall | $105,065 |
| Additional annual saving needed | $2,141 |
| Savings last until age | 90 |
| First-year withdrawal | $98,317 |
Withdrawals rise with inflation and are taken at the start of each retirement year; returns are constant, so actual results will vary with markets. Results are before income taxes; withdrawals from tax-deferred accounts are taxable.
Interpreting the results
- A first-year withdrawal rate near 4% has historically been considered sustainable for a 30-year retirement; higher rates add risk.
- Lowering assumed returns by one percentage point is a useful stress test.
- Revisit the plan every year and after major life changes; small early adjustments compound.
Frequently asked questions
How much do I need to retire?
You need enough savings to fund the gap between your desired income and guaranteed income such as Social Security or a pension, rising with inflation, for every year of retirement. This planner calculates that amount from your assumptions.
What is the 4% rule?
The 4% rule suggests that withdrawing 4% of savings in the first year of retirement, then adjusting for inflation, has historically lasted about 30 years for a balanced portfolio. It is a rule of thumb, not a guarantee.
What return should I assume?
Use returns consistent with your asset allocation, net of fees, and test lower values. Many planners assume lower returns in retirement because portfolios usually shift toward bonds and cash.
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