Retirement Planning Tools
Retirement Calculator
Project your nest egg, monthly retirement income, and readiness score. Real math — no signup required.
Retirement Details
Projected Nest Egg
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Insights
How Retirement Math Works
Retirement projections rely on the power of compound interest and future value calculations. As you save and invest money over time, your earnings generate their own returns, creating exponential growth over decades.
The calculator estimates your total nest egg at retirement age by combining the future growth of your existing savings with ongoing monthly contributions compounded at your expected annual return rate.
The 4% Rule Explained
The 4% rule is a widely used benchmark in retirement planning. It suggests that you can withdraw 4% of your total retirement nest egg in your first year of retirement and adjust that dollar amount for inflation each subsequent year without running out of money over a 30-year retirement horizon.
Frequently asked questions
How much do I need to retire?
A common rule of thumb is the 25x rule: multiply your desired annual retirement expenses by 25 to estimate your target nest egg. For example, needing $48,000 per year ($4,000/month) translates to a $1,200,000 nest egg.
What is the 4% rule?
The 4% rule suggests you can safely withdraw 4% of your retirement savings in your first year of retirement, then adjust that amount for inflation each subsequent year, with a high probability your money will last 30 years.
Should I include Social Security in my retirement planning?
Yes, Social Security provides a reliable baseline income in retirement. However, many financial planners recommend building your primary nest egg assuming conservative or partial Social Security benefits to protect against policy changes.
What return rate should I use for retirement projections?
Historically, a balanced stock and bond portfolio has returned around 7% to 10% nominal, or 5% to 7% after adjusting for inflation. Using a conservative 6% to 7% return rate helps prevent overestimating future wealth.
How much should I contribute to my 401(k)?
Financial experts often recommend saving at least 15% of your pre-tax income for retirement starting in your 20s. Always contribute at least enough to capture your employer's full 401(k) match, which is essentially free money.