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
Frequently Asked Questions
RETIREMENT SAVINGS MILESTONES:
By Age 30: 1x annual salary
• Example: $60,000 salary = $60,000 saved
• You're ahead if: You have more than 1x
• You're behind if: Less than 0.5x
By Age 35: 2x annual salary
• Example: $70,000 salary = $140,000 saved
By Age 40: 3x annual salary
• Example: $80,000 salary = $240,000 saved
By Age 45: 4x annual salary
• Example: $90,000 salary = $360,000 saved
By Age 50: 6x annual salary
• Example: $100,000 salary = $600,000 saved
By Age 55: 7x annual salary
• Example: $110,000 salary = $770,000 saved
By Age 60: 8x annual salary
• Example: $115,000 salary = $920,000 saved
By Age 67 (Retirement): 10x annual salary
• Example: $120,000 salary = $1,200,000 saved
REALITY CHECK:
Median retirement savings by age (2024):
• Under 35: $18,880 (should be $60K-$140K)
• 35-44: $45,000 (should be $140K-$360K)
• 45-54: $115,000 (should be $360K-$600K)
• 55-64: $185,000 (should be $600K-$920K)
Most Americans are significantly behind!
CATCH-UP STRATEGIES IF BEHIND:
Strategy 1: Maximize catch-up contributions (Age 50+)
• 401(k) catch-up: Extra $7,500/year (2024)
• IRA catch-up: Extra $1,000/year
• Total extra: $8,500/year
Strategy 2: Aggressive savings rate
• Behind at 40? Save 20-25% of income
• Behind at 50? Save 25-30% of income
• Behind at 55? Save 30-35%+ of income
Strategy 3: Delay retirement
• Work 3 extra years = 30%+ more savings
• Delay Social Security to age 70 = 24% higher benefit
EXAMPLE: Catching up at age 45
Current situation:
• Age: 45
• Salary: $90,000
• Current savings: $180,000 (should be $360,000)
• Behind by: $180,000
Catch-up plan (22 years until 67):
• Save 20% of salary ($18,000/year)
• Employer match 5% ($4,500/year)
• Total: $22,500/year at 7% return
• Result at 67: $1,367,000
This exceeds the 10x target!