The Retirement Calculator helps you project your future nest egg, estimate the income you may need, and see whether you are on track. With a few inputs—age, savings, contributions, expected returns, inflation, and benefits—you can turn uncertainty into a clear plan of action.
What the Retirement Calculator does
Retirement planning is a long-term journey. This calculator projects how your current savings and monthly contributions may grow between now and retirement, then compares that projection to the amount you would need to sustain your desired income throughout retirement. To keep results meaningful, it translates future values into today’s dollars, factoring in inflation and investment fees.
Key questions it answers
- How much could my retirement savings grow by my target retirement age?
- What income will I likely need to maintain my lifestyle?
- Will Social Security or pensions cover a portion of that need?
- Am I on track, and if not, how much more should I save each month?
How to use the calculator
- Enter your timeline: Provide your current age, your planned retirement age, and a realistic life expectancy to estimate how long your retirement may last.
- Add your savings picture: Include all current retirement savings and your monthly contribution. If you expect to increase contributions annually (for example, with raises), include an annual increase percentage.
- Set assumptions: Choose a long-term expected return for your portfolio, your compounding frequency, and any annual fees. Add an inflation assumption to express results in today’s dollars.
- Define income needs: Enter your current annual income and the percentage you aim to replace in retirement. Include your expected monthly Social Security or pension benefits.
- Calculate and review: The tool estimates your projected nest egg and compares it to the amount needed to fund your target income over your retirement years.
Understanding your results
The calculator provides two key outputs: your projected savings at retirement and the required nest egg to fund your desired income. A surplus means you are currently on track, while a shortfall indicates you may need to save more, work longer, adjust your return assumptions, or reduce spending in retirement.
Assumptions that matter
- Investment return and fees: Even small differences in fees or returns compound dramatically over decades. Review your asset allocation and expense ratios.
- Inflation: Converting future dollars into today’s dollars keeps the analysis realistic. Use a long-term average rather than recent spikes or dips.
- Longevity: Underestimating life expectancy is risky. Consider planning for a longer horizon to reduce the chance of outliving your assets.
- Contribution growth: Gradually increasing your savings rate—such as 1–2% per year—can close gaps without large immediate sacrifices.
Strategies if you have a shortfall
If the Retirement Calculator shows a shortfall, consider a blended approach:
- Increase savings: Even an extra $50–$200 per month can significantly improve outcomes, especially when started early.
- Delay retirement: Working one to three more years shortens the withdrawal period and extends compounding.
- Optimize investments: Diversify broadly and minimize fees. Ensure your portfolio’s risk level aligns with your time horizon.
- Adjust spending: Lowering your replacement rate by a few percentage points can reduce the required nest egg.
- Coordinate Social Security: Delaying benefits can increase guaranteed income, reducing pressure on your portfolio.
Why this calculator is different
Many tools focus on a single number. This Retirement Calculator compares your future savings to an inflation-adjusted income goal over your expected retirement years. It accounts for contribution increases, compounding frequency, fees that reduce returns, and the timing of contributions (beginning vs. end of period). The result is a balanced view that helps you make informed trade-offs.
Next steps
Use the results as a starting point for a deeper plan. Revisit your inputs annually, especially after major life changes or market shifts. Consider automating contribution increases, reviewing your investment costs, and creating a written retirement income strategy that blends guaranteed income sources with your portfolio withdrawals.
Retirement success rarely comes from one big decision; it’s built from consistent, informed choices over time. With the Retirement Calculator, you’ll have clarity on where you stand and what to do next.