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Retirement Calculator - How Much Do You Need to Retire?

Project your retirement corpus from current savings and monthly contributions. Inflation-adjusted target with safe withdrawal income.

Corpus at retirement
$1,719,009.77
Short $465,526.45

In today's money. We inflate it to your retirement year automatically.

4% is the standard (Trinity Study). Use 3.5% to be conservative.

Corpus at retirement
$1,719,009.77
Shortfall of $465,526.45
Required corpus
$2,184,536.22
At 4% withdrawal
Projected monthly income
$5,730.03
Inflation-adjusted expenses
$87,381.45
At retirement
Required monthly to hit goal
$1,310.29
Currently saving $1,000.00

Portfolio growth to retirement

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How to use the Retirement Calculator - How Much Do You Need to Retire?

  1. 1

    Enter your current age and target retirement age

    Type your age today and the age you plan to stop working. The gap defines your accumulation horizon — every additional year compounds dramatically, so test 60, 65 and 70 to see the effect.

  2. 2

    Add current savings and monthly contribution

    Enter the total already invested across 401(k), IRA, EPF, NPS or brokerage, plus the amount you save each month. Include employer match in the monthly figure for a true picture.

  3. 3

    Set return and inflation assumptions

    Pick a pre-retirement return (8-9% for equity-heavy, 5-7% for balanced), a more conservative post-retirement return (4-6%) and an inflation rate. Default 3% inflation is sensible for most economies.

  4. 4

    Review projected corpus vs target

    The result card shows projected corpus, the inflation-adjusted target you actually need, and the gap or surplus. The 4% rule converts your corpus into sustainable annual retirement income.

  5. 5

    Test the four levers to close any gap

    If you are short, raise the monthly contribution, push retirement age out by 2-3 years, lower your target income, or accept a slightly higher return. Compare scenarios side by side.

What this calculator does

Retirement planning is the process of estimating how much capital you need to replace your working-age income for the rest of your life - typically 25-35 years post-retirement. The standard approach has two phases: (1) accumulation - growing a corpus via savings, employer contributions (401(k), EPF, pension) and investment returns, and (2) distribution - drawing down that corpus while it continues to earn returns. The 4% rule, derived from the Trinity Study (1998) and updated by Bengen, says you can withdraw 4% of your starting corpus each year (inflation-adjusted) with a 95%+ probability of the money lasting 30 years. So a $1M corpus supports $40,000/year of starting retirement income; a $25,000/year retirement requires $625,000. This calculator implements both the accumulation projection and the 4% (or custom rate) distribution calculation.

Formula

Corpus = S * (1 + r)^t + P * [((1 + i)^n - 1) / i] * (1 + i)
Corpus
Projected retirement corpus at retirement age
S
Current savings already invested
r
Annual expected return (pre-retirement)
t
Years until retirement = retirement age - current age
P
Monthly contribution
i
Monthly rate = r / 12
n
Total months = t * 12

Two components: the lumpsum compounding formula for your existing savings (first term), and the SIP/annuity future-value formula for ongoing monthly contributions (second term). Once we have the corpus, sustainable annual income is calculated as Corpus * w where w is the safe withdrawal rate (typically 4%). The target corpus is computed as: desired_annual_retirement_income / w, where the desired income is inflated from today's dollars at the inflation rate over t years. The gap (or surplus) between projected and target corpus tells you whether to save more, retire later, or relax.

Worked examples

Example: 35-year-old, $50K saved, $1,000/month, retire at 65

Inputs: current age 35, retirement age 65, current savings $50K, monthly contribution $1,000, pre-retirement return 9%, post-retirement return 6%, inflation 3%, desired retirement income $60K/year (today's dollars).

Years to retirement t = 30 Existing $50K grows: $50,000 * (1.09)^30 ~ $663,000 SIP component: $1,000/month at 9% for 30 years ~ $1,830,000 Projected corpus = $663K + $1,830K ~ $2.49M

Target corpus: $60K * (1.03)^30 = $145K/year in 2055 dollars. Using 4% SWR: $145K / 0.04 = $3.64M target.

Result: Projected $2.49M vs target $3.64M = $1.15M shortfall. The user needs to increase monthly contributions to roughly $1,750, work 4 more years to age 69, or reduce desired income to $42K/year (today's dollars) to close the gap.

Example: 45-year-old already on track

Inputs: age 45, retire at 65, current savings $400K (401(k) + IRA), monthly contribution $1,500, pre-retirement return 8%, post-retirement 5%, inflation 3%, desired income $80K/year today.

Existing $400K * (1.08)^20 ~ $1.86M SIP $1,500/month at 8% for 20 years ~ $883K Projected corpus ~ $2.75M

Target: $80K * (1.03)^20 = $144K/year at retirement. At 4% SWR, target = $3.61M. Shortfall ~ $860K - solvable by working 3 more years or increasing contributions by $700/month.

Common use cases

  • Checking if your current savings rate puts you on pace for retirement at your target age
  • Quantifying how many more years you need to work to retire safely (if behind) or whether you can retire early (if ahead)
  • Stress-testing the impact of lower returns (8% vs 10%) on your retirement readiness
  • Comparing FIRE (4% rule, 25x annual expenses) vs traditional retirement (3.5-4% SWR, 30-year horizon)
  • Deciding between paying down a low-rate mortgage vs increasing retirement contributions
  • Planning Roth IRA / 401(k) / EPF / NPS contribution increases after a raise or windfall
  • Modelling a phased retirement: part-time work in your 60s reducing required withdrawals

What affects the result

  • Time horizon - 30 years of compounding can 10x your money at 8%; 20 years only 4.7x
  • Pre-retirement return - aggressive (equity-heavy) portfolios average 8-10%; conservative 5-7%; the difference is hundreds of thousands of dollars
  • Inflation - a 3% rate compounded over 30 years means $1 today = $0.41 of purchasing power; ignoring inflation is the most common planning error
  • Withdrawal rate - 4% is the classic safe rate for 30-year retirements; 3.3% for 40+ year retirements (early retirement / FIRE)
  • Sequence-of-returns risk - poor returns in the first 5 years of retirement permanently damage corpus longevity
  • Social Security / state pension / EPF / NPS - these reduce the corpus you need to fund yourself; subtract their PV from your target
  • Healthcare costs - retirees in the US spend an average of $315K (Fidelity 2023) on healthcare in retirement, often not in the base assumption
  • Tax treatment - traditional 401(k)/EPF withdrawals are taxed as income; Roth IRA is tax-free; tax-aware withdrawal sequencing can extend corpus by 5-10 years

Tips

  • Save 15% of gross income from age 25 - mathematically sufficient for most workers to retire at 65 with no other planning
  • Max your 401(k) match before anything else - it's a 100% instant return
  • Use tax-advantaged accounts in order: 401(k) match -> HSA -> Roth IRA -> 401(k) -> taxable brokerage
  • Increase contributions by your raise percentage every year so savings rate stays constant or rises
  • Hold an "age in bonds" allocation roughly (age 60 -> 60% bonds) - reduces equity risk as horizon shortens
  • Build a 1-2 year cash bucket near retirement so you don't sell equities in a crash
  • Delay Social Security to 70 if you have other income - effectively a 76% larger monthly benefit vs claiming at 62
  • Recalculate the plan every year - small course corrections compound; large ones at 60 don't

Mistakes to avoid

  • Using nominal returns without subtracting inflation - a 9% return at 3% inflation is only 5.8% real
  • Assuming you'll spend less in retirement - most retirees spend the same or more in early retirement (travel, hobbies, healthcare)
  • Ignoring healthcare - the single biggest unplanned cost in US retirement; Medicare doesn't cover everything
  • Withdrawing too much in down years - the 4% rule assumes inflation-adjusted withdrawals; cutting back in crashes extends corpus dramatically
  • Not rebalancing - drifting into 80%+ equity in your 60s exposes you to sequence-of-returns risk just when you can least afford it
  • Cashing out a 401(k) when changing jobs - the 10% penalty plus ordinary income tax can destroy 30-40% of the balance
  • Starting Social Security at 62 instead of 70 - delaying claims increases the monthly benefit by ~8% per year of deferral
  • Counting on a paid-off house but not on housing maintenance, property tax and insurance (typically 2-4% of home value per year)

Frequently asked questions

How much do I need to retire?

A common rule is 25x your annual expenses (the inverse of the 4% withdrawal rule). For $60K/year of retirement spending you need $1.5M. For a 40+ year early retirement use 28-30x; for a traditional 30-year retirement 25x is well-tested. Use this calculator to plug in your specific numbers and inflation expectations.

What is the 4% rule and is it still valid?

Coined from the Trinity Study (1998), the 4% rule says you can withdraw 4% of your starting portfolio in year one and adjust annually for inflation, with a 95%+ chance of the money lasting 30 years (60/40 equity/bond mix). Recent updates (Bengen 2022, Morningstar 2023) suggest 3.3-3.8% for current market conditions and longer retirements. Use 4% as a planning anchor but stress-test at 3.5%.

Can I retire at 50? At 40?

Yes, if your savings rate is high enough. The math is: years to retirement ~ -ln(1 - SWR * (1 + r)/(SR * r)) / ln(1 + r), where SR is savings rate and r is real return. At 50% savings rate and 5% real return, you're financially independent in ~17 years from a $0 start. At 75% savings rate, ~7 years. This is the basis of FIRE (Financial Independence Retire Early).

Should I count Social Security or my state pension?

Yes, but conservatively. In the US, Social Security currently replaces ~40% of pre-retirement income for the median worker. Subtract the present value of expected benefits from your target corpus. For workers under 45, build in a 25% haircut to projected benefits as a margin of safety (the SSA trust fund depletion is projected for 2033 without legislative action).

What return should I assume?

For a diversified global equity portfolio: 7-9% nominal long-term. For a 60/40 stock/bond mix: 5-7%. After retirement, when allocation gets more conservative: 4-6%. Always model in real (inflation-adjusted) terms or include inflation in the calculation - a 9% nominal return at 3% inflation is only 5.83% real.

What about healthcare costs in retirement?

In the US, Fidelity estimates a 65-year-old couple retiring in 2023 will need $315,000 (in today's dollars) for healthcare costs throughout retirement, on top of Medicare. In the UK, India and most of Europe, public healthcare reduces this dramatically. Always model healthcare as a separate line item, not buried in general expenses.

How does inflation change my plan?

Inflation is silently the biggest threat to retirement plans. At 3% inflation, $1 today buys $0.55 in 20 years and $0.41 in 30 years. Your target corpus must be in future dollars - $60K of spending today becomes $145K in 30 years at 3% inflation. The calculator handles this automatically by inflating your desired income.

What if my projected corpus is short?

You have four levers: save more (increase monthly contribution), work longer (delay retirement), spend less (reduce target income), or earn more on investments (accept higher risk for higher expected return). The most powerful is working longer: each additional year typically adds 7-10% to the final corpus (one more year of compounding plus one fewer year of withdrawals).

Last reviewed:

Sources & references

This calculator provides illustrative projections only and does not constitute financial, investment, tax or legal advice. Retirement outcomes depend on many factors beyond the model (sequence of returns, healthcare, tax law changes, longevity). Consult a licensed financial planner for personalised advice.

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