Plan your retirement savings, target nest egg, and future income needs. Calculate recommended monthly savings and investment requirements based on current age.
Planning for retirement is essential to ensure financial security when you stop working. Our free online Retirement Calculator helps you determine if your current savings rate is on track, estimating your future nest egg size, expected annual retirement income, and any savings shortfall.
By analyzing inputs such as current age, target retirement age, current savings, monthly contributions, expected annual returns, and post-retirement spending needs, the calculator models your retirement timeline and gives you actionable targets to achieve your goals.
A common benchmark is the '80% rule,' suggesting you need 80% of your pre-retirement annual income to maintain your lifestyle. Another method is the '25x rule,' which states you need a nest egg equal to 25 times your planned annual retirement spending.
The 4% rule is a guideline stating that you can safely withdraw 4% of your retirement portfolio in the first year of retirement, and adjust that amount for inflation each subsequent year, with a very high probability that your savings will last at least 30 years.
Starting early allows compound interest to work over a longer time period. Compounding means that the interest earned on your investments earns interest itself, making early savings worth far more than savings added later in life.
A target-date fund is an investment fund that automatically adjusts its asset allocation (mix of stocks and bonds) to become more conservative (more bonds, fewer stocks) as you get closer to your target retirement year.