How much do I need to retire?

A common rule is the 25x rule: save 25 times your annual expenses. If you need $60,000/year, save $1.5 million. Another approach is 80% of pre-retirement income. Consider Social Security (covers ~40% for average earner), pension if available, and desired lifestyle. Online calculators account for inflation, investment returns, and longevity.

What is the 4% rule for retirement?

The 4% rule suggests withdrawing 4% of your retirement portfolio annually (adjusted for inflation), with a high probability of lasting 30 years. For a $1 million portfolio, withdraw $40,000 the first year. This balances not outliving your money while maintaining purchasing power. Recent research suggests 3.5% might be safer given lower expected returns.

You can retire when your savings generate enough income to cover expenses indefinitely. Factors include: retirement savings, Social Security age (62-70), pension vesting, health insurance until Medicare (65), and desired lifestyle. Early retirement (before 59½) requires careful planning due to retirement account withdrawal penalties and longer time horizon.

How does Social Security affect my retirement plan?

Social Security replaces about 40% of pre-retirement income for average earners. You can claim as early as 62 (reduced benefits) or delay until 70 (increased benefits). Full retirement age is 67 for those born after 1960. Delaying from 62 to 70 increases monthly benefits by about 76%. Factor estimated benefits into retirement income planning.

What if I start saving for retirement late?

Starting late requires higher savings rates but isn't hopeless. Maximize contributions: those 50+ can contribute extra ($7,500 more to 401k). Delay retirement a few years to save more and reduce years in retirement. Consider working part-time in retirement. Reduce expenses to lower needed retirement income. Start immediately—the best time is now, not tomorrow.

Finance

Retirement Calculator

Plan your retirement savings and estimate your future income.

Projected Savings at 65$0

Monthly Income (4% Rule)$0

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Milestones

Age	Projected Balance

Retirement Planning Tips

The 4% Rule: This calculator estimates your monthly retirement income using the 4% rule, which suggests you can withdraw 4% of your retirement portfolio in the first year and adjust for inflation thereafter, with a high probability of not running out of money for 30 years.

Start Early: The earlier you start saving, the more time your money has to grow through compound interest.