Retirement Calculator
Income-based projections with salary growth modeling.
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📚 Understanding Retirement Planning
Retirement planning is the process of determining your retirement income goals and the actions needed to achieve them. It involves identifying sources of income, estimating expenses, implementing a savings program, and managing assets and risk. The earlier you start planning, the more time your money has to grow through compound interest.
The key to successful retirement planning is understanding that small changes today can have enormous impacts over decades. Increasing your contribution by just 1% of your salary, or starting five years earlier, can add hundreds of thousands of dollars to your retirement nest egg. This is because of the exponential nature of compound growth—your investments earn returns, and those returns earn their own returns.
The 4% Rule: A widely-used guideline suggests you can safely withdraw 4% of your retirement savings annually without running out of money over a 30-year retirement. This means if you have $1,000,000 saved, you could withdraw $40,000 per year. To determine how much you need, multiply your desired annual retirement income by 25.
For example, if you want $60,000 per year in retirement, you'll need approximately $1.5 million saved (60,000 × 25 = 1,500,000). This calculator helps you determine whether you're on track to reach your goal.
🎯 How to Use This Calculator
Our retirement calculator projects your savings growth based on your current situation and future contributions. Here's how to get the most accurate results:
- Enter your current age and retirement age – The difference determines your investment time horizon. A longer horizon allows more aggressive investing and more time for compound growth.
- Input your current retirement savings – Include all tax-advantaged accounts (401(k), IRA, 403(b)) and any investments specifically designated for retirement.
- Enter your current annual income – This is used to calculate your contribution amounts, especially if you're contributing a percentage of your salary.
- Set your annual salary increase – The average raise in the U.S. is 3% annually. This affects future contribution amounts as your salary grows.
- Enter your contribution percentage – Financial advisors recommend saving 10-15% of your income for retirement, including employer match.
- Include employer match – This is essentially free money. If your employer matches 50% up to 6%, entering 4% means they contribute 4% (matching your first 6% at 50%).
- Choose expected return rate – Historical stock market returns average 10% nominally, or 7% after inflation. Use 7% for conservative estimates.
The calculator shows three scenarios: Conservative (your rate - 2%), Base (your selected rate), and Aggressive (your rate + 2%). This helps you understand the range of possible outcomes.
💼 Types of Retirement Accounts
401(k) / 403(b)
Employer-sponsored plans that allow pre-tax contributions up to $24,500 in 2026 ($32,500 if 50+, or $35,750 for ages 60-63 with super catch-up). Many employers offer matching contributions, which is essentially free money. Taxes are paid upon withdrawal in retirement.
Traditional IRA
Individual retirement account with tax-deductible contributions up to $7,500 in 2026 ($8,500 if 50+). Like 401(k)s, you pay taxes on withdrawals. Anyone with earned income can contribute, regardless of employer retirement plan access.
Roth IRA / Roth 401(k)
Contributions are made with after-tax dollars, but all growth and withdrawals in retirement are tax-free. Roth accounts are excellent if you expect to be in a higher tax bracket in retirement or want tax-free income.
SEP IRA / Solo 401(k)
Designed for self-employed individuals and small business owners. These allow much higher contribution limits—up to $72,000 in 2026 for SEP IRAs and Solo 401(k)s—making them powerful wealth-building tools.
❓ Frequently Asked Questions
How much should I save for retirement?
A common guideline is to save 10-15% of your gross income, including any employer match. By age 30, aim to have 1x your salary saved; by 40, 3x; by 50, 6x; by 60, 8x; and by 67, 10x your salary. These are benchmarks—your specific needs depend on desired lifestyle and expected Social Security benefits.
What is employer matching and why is it important?
Employer matching is when your company contributes money to your retirement account based on your contributions. For example, a "50% match up to 6%" means they'll contribute 50 cents for every dollar you contribute, up to 6% of your salary. Always contribute at least enough to get the full match—it's a 50-100% immediate return on your money.
What rate of return should I expect?
The S&P 500 has historically returned about 10% annually before inflation, or 7% after inflation. For planning purposes, using 7% is conservative and accounts for inflation. Actual returns vary significantly year to year—you might see -20% or +30% in any given year—but long-term averages tend toward these figures.
Should I contribute to a 401(k) or pay off debt first?
First, contribute enough to your 401(k) to get the full employer match—the return is instant and substantial. After that, pay off high-interest debt (anything above 7-8%). Then maximize retirement contributions. Low-interest debt like mortgages can often be paid alongside retirement saving.
What's the difference between traditional and Roth accounts?
Traditional accounts are tax-deferred: you get a tax break now but pay taxes on withdrawals. Roth accounts are tax-free in retirement: you pay taxes now but never again on that money. Generally, Roth is better if you're young or expect higher future taxes; Traditional is better if you're in your peak earning years.
When can I access my retirement funds?
Generally, you can withdraw from retirement accounts without penalty at age 59½. Early withdrawals typically incur a 10% penalty plus income taxes. Roth IRA contributions (not earnings) can be withdrawn anytime penalty-free. There are also exceptions like the Rule of 55, substantially equal payments, and hardship withdrawals.
Will Social Security be enough for retirement?
Social Security is designed to replace about 40% of pre-retirement income for average earners. Most financial experts recommend planning for 70-80% income replacement in retirement. This means personal savings need to fill a significant gap. Don't rely solely on Social Security—treat it as a supplement to your own savings.
💡 Retirement Planning Strategies
Start Early, Even Small
Thanks to compound interest, $200/month starting at 25 grows larger than $400/month starting at 35. Time in the market beats timing the market.
Maximize Your Match
Never leave employer match money on the table. It's a guaranteed 50-100% return. Prioritize this before other savings goals.
Increase Contributions Gradually
Increase your contribution by 1% each year or with each raise. You won't notice the difference, but your future self will thank you.
Rebalance Annually
Review and adjust your asset allocation yearly. As you approach retirement, gradually shift from stocks to bonds to reduce volatility.