Retirement Calculator
Plan how much you need to save for a comfortable retirement.
Retirement Details
Projected Savings
Total at Retirement
$1,234,567
Total Contributions
$260,000
Investment Gains
$974,567
How Much Do You Actually Need to Retire?
The most widely used rule: you need 25x your annual expenses saved at retirement. This is derived from the 4% withdrawal rule—research showing a 4% annual withdrawal rate from a diversified portfolio has historically lasted 30+ years without running out of money.
- $40,000/year expenses → need $1,000,000
- $60,000/year expenses → need $1,500,000
- $80,000/year expenses → need $2,000,000
- $100,000/year expenses → need $2,500,000
Add expected Social Security benefits to reduce your required portfolio. The average benefit in 2024 is approximately $1,900/month ($22,800/year).
Savings Benchmarks by Age
Fidelity's guidelines as a multiple of current annual salary:
| Age | Target Savings | Example ($75K salary) |
|---|---|---|
| 30 | 1× salary | $75,000 |
| 35 | 2× salary | $150,000 |
| 40 | 3× salary | $225,000 |
| 50 | 6× salary | $450,000 |
| 60 | 8× salary | $600,000 |
| 67 | 10× salary | $750,000 |
These benchmarks assume retiring at 67 and replacing 80% of pre-retirement income (some expenses decrease in retirement, but healthcare costs often increase).
Savings Rate vs Years to Retirement
Your savings rate—not your salary—determines how quickly you reach financial independence:
| Savings Rate | Years to Retirement (from zero) |
|---|---|
| 10% | ~43 years |
| 20% | ~32 years |
| 30% | ~25 years |
| 50% | ~17 years |
| 70% | ~9 years |
Assuming 5% real returns after inflation. A 50% savings rate is achievable for most people—it requires frugality, not a high income.
2024 Retirement Account Contribution Limits
- 401(k) / 403(b): $23,000/year ($30,500 if 50+)
- IRA (Roth or Traditional): $7,000/year ($8,000 if 50+)
- HSA: $4,150 individual / $8,300 family (triple tax advantage)
- SEP-IRA (self-employed): Up to $69,000/year
Priority order: 401(k) to full employer match → Roth IRA to max → 401(k) to max → taxable accounts
Social Security Timing Strategy
- Claim at 62: 25-30% permanent reduction in monthly benefit
- Full Retirement Age (66-67): Receive 100% of calculated benefit
- Claim at 70: 24-32% permanent increase over full retirement age
For someone with $2,000/month at full retirement age, claiming at 62 gives ~$1,400/month; claiming at 70 gives ~$2,480/month. The crossover point where delaying wins is approximately age 80.
Frequently Asked Questions
Is $1 million enough to retire?
At a 4% withdrawal rate, $1 million supports $40,000/year. With Social Security averaging $22,800/year, total income is ~$62,800. This is comfortable for many retirees in moderate cost-of-living areas. In expensive cities or with high healthcare needs, more is typically required.
What if I'm behind on retirement savings?
Most Americans are behind—you're not alone. Maximize catch-up contributions after 50 ($7,500 extra in 401k, $1,000 extra in IRA), consider working 2-3 extra years (dramatically improves the math), reduce planned retirement expenses, and explore part-time work in early retirement.
Should I pay off my mortgage before retiring?
Eliminating a large fixed expense before retirement reduces the income you need. If your mortgage rate is below 6-7%, investing the extra cash may slightly outperform the guaranteed mortgage payoff return. If your mortgage rate is above 7% or the psychological value of being debt-free is high, paying it off before retirement is reasonable.
What about healthcare in retirement?
Healthcare is the largest unknown expense in retirement. At 65 you qualify for Medicare (premiums: ~$165-560/month in 2024). Before 65, ACA marketplace plans or COBRA coverage are options. Budget $500-1,500/month for healthcare depending on your situation and health history.