Plan your comprehensive retirement strategy including 401k, IRA, Roth IRA, and Social Security benefits.
Plan your traditional retirement with comprehensive 401k, IRA, Social Security, and pension calculations. Build a secure financial future for your golden years.
"The best time to plant a tree was 20 years ago. The second best time is now." - Chinese Proverb
Retirement planning is one of the most important financial tasks you'll ever undertake. Yet most Americans are woefully unprepared—nearly half have no retirement savings at all. The good news? With proper planning and consistent action, you can build a comfortable retirement regardless of your current age or income.
This calculator helps you model your retirement by considering all income sources: 401(k), IRA, Social Security, pensions, and other investments. It shows you whether you're on track, how much you need to save, and what adjustments might be necessary to achieve your retirement goals.
The key to successful retirement planning is starting early, saving consistently, and understanding how different factors—investment returns, inflation, healthcare costs, and longevity—affect your retirement security.
The most common question in retirement planning: "How much money do I need?" The answer depends on your lifestyle, but here are the most popular rules of thumb:
Withdraw 4% of your portfolio in year one of retirement, then adjust for inflation each year. This gives you a 95%+ chance of not running out of money over 30 years.
Example:
Need $60,000/year in retirement?
$60,000 ÷ 0.04 = $1,500,000 needed
Save 25 times your annual retirement expenses. This is mathematically equivalent to the 4% rule but easier to calculate.
Example:
Annual expenses: $60,000
$60,000 × 25 = $1,500,000 needed
Plan to replace 80% of your pre-retirement income. You'll need less because you're no longer saving for retirement, paying payroll taxes, or commuting to work.
Example:
Pre-retirement income: $100,000
Retirement need: $80,000/year
Social Security provides a foundation of guaranteed income for life. The average benefit in 2025 is about $1,900/month, but your amount depends on your earnings history and when you claim.
Claiming Age Strategy:
Pro tip: Delaying to 70 can increase lifetime benefits by $100,000+ if you live to average life expectancy.
Employer-sponsored retirement plans are the primary retirement savings vehicle for most Americans. Take full advantage of employer matches—it's free money.
401(k) Contribution Limits (2025):
Goal: Max out your 401(k) if possible. $23,000/year for 30 years at 8% = $2.8 million.
Beyond employer plans, build additional savings through IRAs, taxable brokerage accounts, rental properties, or other investments. This provides flexibility and tax diversification.
IRA Contribution Limits (2025):
Fidelity recommends these retirement savings milestones based on your annual salary:
| Age | Savings Target | Example ($75k salary) | Status |
|---|---|---|---|
| 30 | 1x salary | $75,000 | 🟢 On Track |
| 35 | 2x salary | $150,000 | 🟢 On Track |
| 40 | 3x salary | $225,000 | 🟢 On Track |
| 45 | 4x salary | $300,000 | 🟡 Good Progress |
| 50 | 6x salary | $450,000 | 🟡 Accelerate |
| 55 | 7x salary | $525,000 | 🟡 Critical Phase |
| 60 | 8x salary | $600,000 | 🔴 Final Push |
| 67 | 10x salary | $750,000 | ✅ Ready |
If you're behind these targets, you have options: increase savings rate, work a few years longer, reduce retirement expenses, or consider part-time work in retirement. The key is taking action now.
Healthcare is often the most underestimated retirement expense. Fidelity estimates a 65-year-old couple retiring in 2025 will need $315,000 for healthcare costs throughout retirement.
If you retire before 65, you'll need private health insurance. Expect to pay $500-$1,500/month per person depending on coverage and location.
Medicare provides basic coverage but has gaps. Most retirees need supplemental insurance.
Typical Medicare Costs (2025):
Total: $500-$800/month per person
70% of people over 65 will need long-term care. Medicare doesn't cover most long-term care costs.
Strategy: Consider long-term care insurance in your 50s, or self-insure by saving extra.
How you withdraw money in retirement can save or cost you tens of thousands in taxes. Here's the optimal withdrawal order:
Long-term capital gains rates (0-20%) are lower than ordinary income tax rates. Plus, you can harvest losses to offset gains.
Withdraw enough to fill up the 12% or 22% tax bracket, but not more. This minimizes taxes while satisfying RMDs.
Let Roth accounts grow tax-free as long as possible. Use them for large expenses, high-income years, or leave them to heirs.
Starting at age 73, you must withdraw a minimum amount from Traditional IRAs and 401(k)s each year. Failure to take RMDs results in a 25% penalty on the amount not withdrawn.
RMD Calculation:
Account Balance ÷ Life Expectancy Factor = RMD
Example: $500,000 ÷ 26.5 (age 73) = $18,868 RMD
A 65-year-old today has a 50% chance of living to 85, and a 25% chance of living to 90. Plan for at least 30 years of retirement to avoid running out of money.
At 3% inflation, your purchasing power is cut in half every 24 years. A $60,000/year lifestyle today will cost $108,000/year in 20 years. Always plan with inflation-adjusted numbers.
Claiming at 62 instead of 70 can cost you $100,000+ in lifetime benefits. Unless you have health issues or need the money, delay as long as possible.
Even in retirement, you need growth to outpace inflation. A 60/40 or 50/50 stock/bond allocation is appropriate for most retirees. Going 100% bonds or cash guarantees you'll lose purchasing power.
Healthcare costs are the #1 cause of retirement plan failures. Budget $500-$800/month per person for Medicare and supplemental insurance, plus $5,000-$10,000/year for out-of-pocket costs.
It depends on your expenses and other income sources. Using the 4% rule, $500,000 provides $20,000/year. Add Social Security ($1,500-$2,000/month) and you have $38,000-$44,000/year. If you can live on that and have healthcare covered, yes. But most people need more for a comfortable retirement.
Aim for 3x your annual salary by age 40. If you earn $75,000, target $225,000 in retirement savings. Behind? Increase contributions, especially if you get raises. The next 20 years are crucial for retirement savings growth.
It depends on your interest rate and comfort level. If your mortgage rate is 6%+ and you'd sleep better without the payment, pay it off. If it's 3-4% and you have other uses for the money, keeping the mortgage might make sense. Many retirees prefer the peace of mind of no mortgage payment.
You're not alone—many Americans are in this situation. Focus on: 1) Maximize 401(k) contributions ($30,500/year with catch-up), 2) Plan to work until 70 to maximize Social Security, 3) Reduce retirement expenses, 4) Consider part-time work in retirement. You can still build a decent nest egg with aggressive saving.
Use this calculator to model your retirement income from all sources (Social Security, 401k, IRA, pension) and compare it to your expected expenses. If your income covers expenses with a safety margin, you're ready. If not, either save more, work longer, or reduce retirement expenses.
The average American has only $65,000 saved for retirement. But to maintain a $50,000 annual lifestyle, you need at least $1.25 million saved.
The 4% rule says you can safely withdraw 4% of your retirement savings annually. This means you need 25x your annual expenses saved.
💡 Key Point: Your money needs to keep working in retirement. You can't beat inflation with savings accounts alone. Investment growth is essential even after you retire.
By age 30
By age 40
By age 50
By age 60
By age 67
Financial Independence
By age 30
By age 40
By age 50
By age 60
By age 67
Any age
Don't panic if you're behind these benchmarks. The most important thing is to start now and increase contributions gradually. Even starting at 40 or 50, you can still build a substantial retirement nest egg with aggressive saving and smart investing.
75% of full benefit - permanent reduction
100% of calculated benefit
132% of full benefit - maximum amount
Healthcare is often the biggest surprise expense in retirement. The average couple needs $300,000+ for medical expenses.
Plan ahead for healthcare costs with these strategies:
Triple tax advantage for medical expenses
Cover gaps in Medicare coverage
Protect against catastrophic costs
Prevention is the best medicine
If you're eligible for an HSA, it's actually the best retirement account available:
Every year you delay costs exponentially due to lost compound growth. Start with whatever you can afford today.
This is free money with immediate 100% return. Always contribute enough to get the full match.
Young investors can afford volatility. Being too conservative early costs hundreds of thousands later.
This triggers taxes and penalties. Always roll over to new employer's plan or IRA.
Medical expenses can consume 15-20% of retirement income. Plan and save specifically for healthcare.
Claiming too early can cost tens of thousands. Understand your break-even points.
The earlier you start, the easier it becomes. Use our calculator above to see exactly how much you need to save and create a plan to retire comfortably.