Find out how much you need to retire at your current lifestyle — and whether you're on track to get there.
What annual income do you want in retirement? Most people target 70–90% of current income.
Include 401k, IRA, and any employer match combined.
Average benefit is ~$1,800/mo. Check ssa.gov for your estimate. Leave blank if unsure.
Life expectancy is around 85. For planning, 30 years is a safe default.
The most common answer is: more than most people have saved, less than most people fear. The 4% rule — withdraw 4% of your portfolio in the first year, adjust for inflation after that — is the most widely used framework. It was developed by examining 30-year retirement periods going back to 1926 and finding the withdrawal rate that never depleted a diversified portfolio. For a $60,000/year retirement income need, it requires a $1.5 million portfolio.
Social Security changes the math significantly. The average Social Security benefit is about $1,800/month ($21,600/year). If you need $60,000/year and Social Security covers $21,600, your portfolio only needs to generate $38,400/year — bringing the target nest egg down from $1.5M to about $960,000. Enter your estimated benefit in the calculator above to see your personalized target.
Inflation is the silent threat. At 3% annual inflation, a $60,000 retirement income in today's dollars requires $121,000/year in 25 years. This is why the calculator works in today's dollars and adjusts your target using the inflation rate you enter — so the goal always represents the same purchasing power.
The return rate assumption matters enormously. The US stock market has returned roughly 10% annually on average over the past century, or about 7% after inflation. In retirement, most advisors recommend a more conservative allocation producing 4–6% returns, which is why 5% is a common withdrawal-phase assumption. The 7% default in this calculator is a pre-retirement growth assumption — appropriate if you're still accumulating.
Retirement age has an outsized impact. Working 5 more years does three things simultaneously: your portfolio grows for 5 more years, your contributions continue for 5 more years, and your portfolio needs to sustain you for 5 fewer years. Delaying retirement from 62 to 67 can make the difference between a gap and a surplus for most people.
The 4% rule is the most widely used framework: divide your desired annual retirement income by 4% to find your target. For $60,000/year, you need $1,500,000. With Social Security covering part of that income, your portfolio target is lower. Our calculator applies this with your specific numbers.
The 4% rule states that you can withdraw 4% of your retirement portfolio in year one, then adjust for inflation each year, and your money will statistically last at least 30 years. It was developed by financial planner William Bengen in 1994 based on historical market returns.
A common benchmark: 1x your salary by 30, 3x by 40, 6x by 50, 8x by 60, and 10x by 67. So at a $70,000 salary, target $70k by 30, $210k by 40, $420k by 50, $560k by 60, and $700k by 67. These are starting points — the calculator above gives you a personalized target.
Social Security replaces a portion of your pre-retirement income, reducing how much your portfolio needs to generate. The average benefit is ~$1,800/month. If you need $60,000/year in retirement and Social Security covers $21,600, your portfolio only needs to generate $38,400/year — reducing your required nest egg from $1.5M to about $960,000.
Rarely on its own. Most people rely on a combination of 401k, IRA, Social Security, and sometimes additional savings. The 2024 401k contribution limit is $23,000 ($30,500 if over 50). Maxing it out every year for 30 years at 7% growth produces about $2.4M — enough for many but not all lifestyles.
A common assumption is 7% average annual return before retirement (historical US market returns after inflation), dropping to 5% during retirement when assets shift to more conservative allocations. Our calculator uses 7% as the default growth rate, which you can adjust.
Significantly more than retiring at 65. Your portfolio needs to last 35–40 years, you won't qualify for full Social Security until 62–67, and no Medicare until 65. A conservative rule for early retirees is a 3.5% withdrawal rate — meaning you need about 28.5x your annual expenses saved.