Retirement Planner
Calculate how much you need to save for retirement and track your progress toward your goal.
How Much Do You Need to Retire?
A common rule of thumb is the “4% Rule” – you can safely withdraw 4% of your nest egg annually without running out of money over a 30-year retirement.
Example: ($60,000 – $20,000) × 25 = $1,000,000
This means if you need $40,000/year from savings, you should aim for $1 million by retirement.
Retirement Savings by Age
Fidelity recommends these savings milestones based on your salary:
Maximizing Your Retirement Savings
- Max out employer match: This is free money. If your employer matches 50% up to 6%, contribute at least 6%.
- Increase contributions annually: Boost by 1% each year, especially after raises.
- Use tax-advantaged accounts: 401(k), IRA, and HSA all offer tax benefits.
- Consider Roth options: Pay taxes now for tax-free withdrawals in retirement.
- Avoid early withdrawals: Penalties and lost growth can significantly impact your nest egg.
Important Considerations
- Healthcare costs: Medicare doesn’t cover everything. Budget $300K+ for healthcare in retirement.
- Inflation impact: $60K today will have less purchasing power in 30 years.
- Sequence of returns risk: Market downturns early in retirement can significantly impact your portfolio.
- Social Security uncertainty: Benefits may be reduced in the future. Don’t over-rely on them.
- Longevity risk: Plan for a longer retirement than you expect. Running out of money is a real risk.
Frequently Asked Questions
How much do I need to retire? What is the nest egg calculation?
A common approach is the 4% rule: Annual Income Needed × 25 = Required Nest Egg. If you need $60,000/year in retirement income and expect $20,000 from Social Security, you need your portfolio to cover $40,000, requiring roughly $1,000,000. The calculator uses your post-retirement return and drawdown rate to project whether your savings will sustain the chosen income for your expected lifespan.
What Social Security benefit estimate should I use?
The calculator includes a note to check ssa.gov for your personalized estimate. Social Security benefits are based on your 35 highest earning years, reduced if you claim before full retirement age (67 for those born in 1960+) or increased up to 8% per year if you delay past 67 up to age 70. Do not guess — use the official My Social Security account estimate.
What is the difference between pre-retirement and post-retirement return rates?
Pre-retirement, most investors hold a more aggressive equity-heavy portfolio aiming for 7–9% returns. Post-retirement, a more conservative allocation (more bonds and stable assets) targeting 4–6% is common to reduce sequence-of-returns risk in the early years of withdrawal. The calculator uses separate rate inputs for each phase.
How long should I plan for retirement to last?
The calculator hints to plan for at least 25–30 years. If you retire at 65, plan to age 90–95 to be conservative. Social Security Administration data shows roughly a 50% probability that at least one spouse in a married couple at 65 lives to 90. Underestimating longevity is one of the biggest retirement planning risks.
What target income in retirement should I use as a starting point?
The calculator suggests 70–80% of your pre-retirement income as a common starting estimate. Spending often drops in early retirement (no work commute, no savings contributions, lower taxes) but can rise again in later years due to healthcare costs. Healthcare is the biggest variable — consider factoring in long-term care insurance or Medicare supplement costs.