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Retirement Savings Calculator
Plan your path to a comfortable retirement and see if you're on track to meet your goals.
Master Your Retirement Planning
The Retirement Reality Check
Life Expectancy: Plan for 30+ years in retirement (age 65-95+)
Healthcare Costs: Average couple needs $300,000+ for medical expenses
Social Security: Only replaces ~40% of pre-retirement income
Critical Truth: Most Americans have saved only $89,300 by age 60. The median retirement savings is $0 for those under 35.
Key Retirement Planning Rules
The 4% Rule
Withdraw 4% of portfolio annually, adjusted for inflation
Example: $1 million = $40,000/year or $3,333/month
25x Rule
Need 25x your annual expenses saved
Example: $60,000/year expenses = $1.5 million needed
Age-Based Savings Targets
- • Age 30: 1x annual salary saved
- • Age 40: 3x annual salary saved
- • Age 50: 6x annual salary saved
- • Age 60: 8x annual salary saved
- • Age 67: 10x annual salary saved
Maximize Tax-Advantaged Accounts
Traditional 401(k)/IRA
- • Tax deduction now
- • Taxed in retirement
- • 2024 limit: $23,000 ($30,500 if 50+)
- • Best if: Higher tax bracket now
Roth 401(k)/IRA
- • No tax deduction now
- • Tax-free in retirement
- • Same contribution limits
- • Best if: Lower tax bracket now
Employer Match = Free Money: Always contribute enough to get full match. Typical 3-6% match = instant 100% return!
Age-Based Investment Strategy
Rule of 100: Your age = percentage in bonds, rest in stocks
- • Age 30: 70% stocks, 30% bonds (aggressive growth)
- • Age 50: 50% stocks, 50% bonds (balanced)
- • Age 65: 35% stocks, 65% bonds (capital preservation)
Modern approach: Target-date funds automatically adjust allocation as you age.
Avoid These Retirement Killers
- ❌ Starting late (costs you millions in compound growth)
- ❌ Cashing out 401(k) when changing jobs (penalties + taxes + lost growth)
- ❌ Not getting employer match (leaving free money on table)
- ❌ Ignoring inflation (3% inflation cuts purchasing power in half over 24 years)
- ❌ Relying only on Social Security (average benefit: $1,827/month)
Your Retirement Action Plan
- Calculate your retirement number using the calculator
- Max out employer match immediately (it's free money!)
- Automate contributions (increase 1% annually)
- Open an IRA for additional tax benefits
- Review and rebalance annually
- Consider Roth conversions in low-income years
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Learn more: Read our comprehensive guide on
Roth vs Traditional IRA: The Complete Comparison GuideUnderstand the key differences, tax implications, and strategies to help you choose the right IRA for your retirement goals.
Frequently Asked Questions
Age-based savings benchmarks (multiples of annual salary):
By 30: 1x salary | By 35: 2x | By 40: 3x | By 45: 4x | By 50: 6x | By 55: 7x | By 60: 8x | By 67: 10x.
Median retirement savings (2024): Under 35: $18,880 | 35-44: $45,000 | 45-54: $115,000 | 55-64: $185,000. Most Americans are significantly behind.
Catch-up strategies: At 50+, max 401(k) catch-up ($30,500/year) plus IRA ($8,000/year). Save 20-35% of income depending on how far behind. Delaying retirement 3 years can increase savings 30%+ and boost Social Security 24%.
By 30: 1x salary | By 35: 2x | By 40: 3x | By 45: 4x | By 50: 6x | By 55: 7x | By 60: 8x | By 67: 10x.
Median retirement savings (2024): Under 35: $18,880 | 35-44: $45,000 | 45-54: $115,000 | 55-64: $185,000. Most Americans are significantly behind.
Catch-up strategies: At 50+, max 401(k) catch-up ($30,500/year) plus IRA ($8,000/year). Save 20-35% of income depending on how far behind. Delaying retirement 3 years can increase savings 30%+ and boost Social Security 24%.
Investing usually wins mathematically. At 3.5% mortgage rate, investing $1,000/month for 20 years at 7% yields ~$520K vs ~$65K saved in mortgage interest.
Pay mortgage first if: Rate above 6-7%, within 5 years of retirement, or already maxing retirement accounts.
Invest first if: Rate below 5%, under 55, not maxing 401(k) match.
Best hybrid approach (70/30): Put 70% toward retirement investing and 30% toward extra mortgage payments. Always get full employer match first, then pay high-interest debt, then max tax-advantaged accounts before extra mortgage payments.
Pay mortgage first if: Rate above 6-7%, within 5 years of retirement, or already maxing retirement accounts.
Invest first if: Rate below 5%, under 55, not maxing 401(k) match.
Best hybrid approach (70/30): Put 70% toward retirement investing and 30% toward extra mortgage payments. Always get full employer match first, then pay high-interest debt, then max tax-advantaged accounts before extra mortgage payments.
The 4% rule (Bill Bengen, 1994) says withdraw 4% of savings annually, adjusted for inflation, for a 95%+ success rate over 30 years. Example: $1M portfolio = $40K/year.
Modern adjustments: Some experts now suggest 3-3.5% for early retirees or longer retirements. Lower expected returns and longer lifespans challenge the original assumptions.
Better strategies: Dynamic withdrawals (adjust 3-5% based on market performance), the "guardrails" approach (cut spending 10% if portfolio drops 20%), or the "bucket" strategy (2 years cash, 8 years bonds, remainder in stocks). The 4% rule remains a solid starting guideline, but flexible withdrawal rates significantly improve success.
Modern adjustments: Some experts now suggest 3-3.5% for early retirees or longer retirements. Lower expected returns and longer lifespans challenge the original assumptions.
Better strategies: Dynamic withdrawals (adjust 3-5% based on market performance), the "guardrails" approach (cut spending 10% if portfolio drops 20%), or the "bucket" strategy (2 years cash, 8 years bonds, remainder in stocks). The 4% rule remains a solid starting guideline, but flexible withdrawal rates significantly improve success.
Gradually shift from stocks to bonds, but keep growth exposure for a 30-year retirement.
Updated "110 minus age" rule: Age 30: 80% stocks/20% bonds | Age 40: 70/30 | Age 50: 60/40 | Age 60: 50/50 | Age 70+: 40/60.
Target-date funds automate this glide path automatically. The "bucket" strategy is another option: Bucket 1 (years 1-2) in cash, Bucket 2 (years 3-10) in bonds, Bucket 3 (years 11+) in stocks. Key mistakes to avoid: going 100% bonds at retirement (inflation risk), staying 100% stocks into your 60s (crash risk), or changing allocation based on market predictions.
Updated "110 minus age" rule: Age 30: 80% stocks/20% bonds | Age 40: 70/30 | Age 50: 60/40 | Age 60: 50/50 | Age 70+: 40/60.
Target-date funds automate this glide path automatically. The "bucket" strategy is another option: Bucket 1 (years 1-2) in cash, Bucket 2 (years 3-10) in bonds, Bucket 3 (years 11+) in stocks. Key mistakes to avoid: going 100% bonds at retirement (inflation risk), staying 100% stocks into your 60s (crash risk), or changing allocation based on market predictions.
Roth is better if you expect higher taxes in retirement; Traditional is better if you expect lower taxes. A mix of both provides tax diversification.
Choose Roth if: In a low bracket now (15-22%), under 35, or expect tax rates to rise.
Choose Traditional if: In a high bracket (32%+), peak earning years, or need the deduction now.
Age-based guide: Age 20-35: 80-100% Roth | Age 35-50: 50/50 split | Age 50-60: 60-80% Traditional | Age 60-67: 80-100% Traditional.
2024 limits: 401(k) $23,000 ($30,500 if 50+), IRA $7,000 ($8,000 if 50+). Employer match always goes to Traditional side.
Choose Roth if: In a low bracket now (15-22%), under 35, or expect tax rates to rise.
Choose Traditional if: In a high bracket (32%+), peak earning years, or need the deduction now.
Age-based guide: Age 20-35: 80-100% Roth | Age 35-50: 50/50 split | Age 50-60: 60-80% Traditional | Age 60-67: 80-100% Traditional.
2024 limits: 401(k) $23,000 ($30,500 if 50+), IRA $7,000 ($8,000 if 50+). Employer match always goes to Traditional side.
It's never too late, but you need an aggressive strategy. Starting at 45 vs 25 with $500/month at 7% means ~$260K vs ~$1.3M -- but catch-up options exist.
Key strategies: (1) Save 25-40% of income depending on age. (2) At 50+, max catch-up contributions ($38,500/year combined). (3) Delay retirement 3-5 years for 30%+ more savings plus 8% higher Social Security per year delayed. (4) Cut expenses aggressively and redirect savings. (5) Increase income via raises, job changes, or side hustles.
Example: Starting at 50 with $100K, maxing $43,500/year at 7% return = ~$1.78M by age 67. Every month you wait costs thousands in lost compounding.
Key strategies: (1) Save 25-40% of income depending on age. (2) At 50+, max catch-up contributions ($38,500/year combined). (3) Delay retirement 3-5 years for 30%+ more savings plus 8% higher Social Security per year delayed. (4) Cut expenses aggressively and redirect savings. (5) Increase income via raises, job changes, or side hustles.
Example: Starting at 50 with $100K, maxing $43,500/year at 7% return = ~$1.78M by age 67. Every month you wait costs thousands in lost compounding.