Retirement Savings Calculator
Plan your retirement savings and withdrawals. Calculate how much you'll have at retirement and how long your savings will last. Includes tax and inflation adjustments.
Retirement Details
Interest Breakdown
Retirement Savings Timeline
How Retirement Planning Works
Understanding Retirement Savings
Our retirement calculator helps you plan for retirement by calculating how much you'll have saved by retirement age and how long your savings will last during retirement. It accounts for compound interest during your savings phase and withdrawals during retirement.
Key Components:
- Current age and retirement age (precise to months)
- Current savings balance
- Monthly and annual contributions during working years
- Compound frequency and contribution timing
- Expected annual return rate
- Monthly withdrawal amount in retirement
- Years and months in retirement
- Tax and inflation considerations
The 4% Rule
A common retirement planning guideline suggests you can safely withdraw 4% of your retirement savings in the first year, then adjust for inflation each subsequent year. This rule assumes a 30-year retirement and a balanced investment portfolio.
Example: If you have $1,000,000 saved, you could withdraw $40,000 in the first year of retirement, adjusted for inflation in subsequent years.
Why Inflation Matters
Inflation erodes purchasing power over time. A $5,000 monthly withdrawal today may only have the purchasing power of $2,500 in 20 years with 3% inflation. Our calculator shows both nominal and real (inflation-adjusted) values.
Real value: Your savings adjusted for inflation, showing actual purchasing power. This is crucial for retirement planning.
Understanding Tax Implications
Tax-Advantaged Accounts
Retirement accounts like 401(k)s and IRAs offer tax advantages:
- Traditional 401(k)/IRA: Contributions are tax-deductible, but withdrawals are taxed
- Roth 401(k)/IRA: Contributions are after-tax, but withdrawals are tax-free
- Tax Rate: Set to 0% for Roth accounts, or your expected tax rate for traditional accounts
After-Tax Savings
Our calculator shows your after-tax savings at retirement, helping you understand your actual take-home amount.
Tips for Retirement Planning
1. Start Saving Early
The earlier you start, the better. Thanks to compound interest, starting in your 20s gives you a significant advantage. Use the retirement calculator to see the difference starting early makes.
2. Maximize Employer Matches
If your employer offers a 401(k) match, contribute enough to get the full match. This is free money that significantly boosts your retirement savings. Use the annual contribution field to account for employer matches.
3. Consider Inflation
Always factor in inflation when planning retirement withdrawals. Our calculator shows real purchasing power so you can plan for actual expenses, not just nominal dollars.
4. Optimize Contribution Timing
Contributing at the beginning of each period (annuity due) earns slightly more interest than contributing at the end. While the difference is small, it adds up over decades.