Retirement Planner
Will your money last as long as you do? Calculate your "Freedom Number" and plan for a secure future effectively.
Retirement Goals
Projected Savings at Age 65
Breakdown
Retirement isn't an age; it's a financial status. It's the point where your assets generate enough income to cover your expenses without you needing to work. This calculator helps you solve the equation: How much do I need save today to be free tomorrow?
The biggest risk in retirement isn't the market crashing; it's living too long. If you plan to die at 85 but live to 95, you could run out of money. Our tool defaults to age 90+ to be safe.
The 4% Rule Explained
This is the "Golden Rule" of retirement planning. Research (The Trinity Study) shows that if you have a diversified portfolio (stocks/bonds), you can withdraw 4% of the initial value in year one, adjust for inflation every year after, and have a 95%+ chance of not running out of money for 30 years.
Example: $1 Million Portfolio
- Year 1 Limit: $40,000
- Method: 4% of Start Value
Safe Sustainable Income.
Example: $500k Portfolio
- Year 1 Limit: $20,000
- Method: 4% of Start Value
Needs Supplementing (SS, Pension).
Maximizing Your "Nest Egg"
Inflation Protection
Retirement planning fails if you ignore inflation. $50,000/year buys a comfortable life today, but in 20 years, it might be poverty wages. Always plan for rising costs.
Income Replacement
You generally need 70-80% of your pre-retirement income to maintain your lifestyle (since you stop saving for retirement and have lower taxes).
Investment Growth ToolsThe Math: Accumulation & Decumulation
Retirement math has two phases: Growing your money (Accumulation) and spending it while it still grows (Decumulation).
To find your "Freedom Number":
- Annual Spend: How much you need per year to live.
- Social Security: Guaranteed income.
- Withdrawal Rate: Typically 0.04 (4%).
The Cost of Waiting ($1M Goal)
How much do you need to save per month to have $1 Million by age 65 (assuming 7% return)?
| Starting Age | Monthly Savings Required | Difficulty |
|---|---|---|
| 20 Years Old | $260 / mo | Easy |
| 30 Years Old | $550 / mo | Manageable |
| 40 Years Old | $1,250 / mo | Hard |
| 50 Years Old | $3,150 / mo | Very Hard |
Starting at 20 is ~12x easier than starting at 50.
Related Tools
How much money do I really need?
A common rule of thumb is '25x your annual expenses.' If you spend $60,000/year, you need roughly $1.5 Million invested to retire safely. This is based on the 4% Withdrawal Rule.
What is the 4% Rule?
The Trinity Study suggests that if you withdraw 4% of your portfolio in the first year of retirement and adjust for inflation thereafter, your money has a high probability of lasting 30 years.
Will Social Security still exist?
Likely yes, but benefits may be reduced (e.g., to ~77% of promised value) if Congress doesn't act by the mid-2030s. It's safest to treat Social Security as a 'bonus' rather than your entire plan.
What is the difference between a 401(k) and IRA?
A 401(k) is offered by your employer (often with a 'match' = free money). An IRA (Individual Retirement Account) is something you open yourself. You should usually max out the 401(k) match first.
Can I retire early (FIRE)?
Yes! Financial Independence, Retire Early (FIRE) is possible by saving a high percentage of your income (often 50%+) and investing in low-cost index funds. The math works the same; you just hit the number faster.
Retirement Terms
401(k)
An employer-sponsored retirement savings plan. Contributions are often tax-deductible.
Roth IRA
An individual retirement account where you pay taxes now so you can withdraw tax-free later.
Required Minimum Distribution (RMD)
The amount the government forces you to withdraw (and pay taxes on) from traditional retirement accounts starting at age 73.
Medicare
Federal health insurance for people 65 or older. It covers many, but not all, medical costs.
About This Calculator
This Retirement Planner uses simplified projections. It assumes a constant rate of return and inflation. It does not account for complex tax situations (RMDs, Tax Brackets) or variable market returns (Sequence of Returns Risk).