Planning for retirement requires balancing how much you save, how long your money must last, and how inflation and investment returns interact over decades. Our retirement calculator uses the 4% withdrawal rule as a baseline and lets you model different savings rates, retirement ages, Social Security benefits, and spending needs.
A common benchmark is 25x your annual expenses (the inverse of the 4% rule). If you need $60,000 per year in retirement, you need roughly $1.5 million saved. However, healthcare costs, Social Security income, a pension, or part-time work can all change this figure significantly.
Research by financial planner William Bengen found that retirees who withdrew 4% of their portfolio in year one, then adjusted for inflation annually, historically did not run out of money over a 30-year retirement. It is a useful rule of thumb, not a guarantee.
Social Security replaces roughly 40% of pre-retirement income for average earners. You can claim as early as 62 (with a permanent reduction) or delay until 70 (for a significant permanent increase). Your full retirement age depends on your birth year.
A widely cited target is saving 15% of gross income (including employer match) throughout your career. Starting early is the most powerful lever. If you start at 35 instead of 25, you may need to save 20–25% to reach the same outcome.
Poor returns in the early years of retirement can permanently damage a portfolio even if long-term average returns are fine—you are selling shares to fund spending when prices are low. Holding 1–2 years of cash or short-term bonds can buffer against this risk.
A 3% average inflation rate doubles prices roughly every 24 years. If you retire at 65 and live to 90, your expenses will roughly double. Always plan retirement income in inflation-adjusted (real) dollars and assume healthcare costs inflate faster than general CPI.