Retirement Calculator

Calculate your retirement savings goal, projected monthly income, investment growth. Our Retirement Calculator helps you plan for a secure financial future. Try it now!

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Current Age years

Retirement Age years

Current Savings $

Monthly Contribution $

Annual Return Rate %

Inflation Rate %

Retirement Duration years

Desired Monthly Income $

Retirement Readiness Summary

Savings at Retirement: -

Safe Monthly Withdrawal: -

Income Replacement: -

Readiness Status: -

Year-by-Year Projection

Year	Age	Savings	Withdrawal

Detailed Analysis

Years to Retirement: -

Total Contributions: -

Total Interest Earned: -

Inflation Adjustment: -

FAQ: Frequently Asked Questions

What does this Retirement Calculator do?

This Retirement Calculator tool helps you project your retirement savings growth based on current investments, monthly contributions, and expected returns. It calculates your future nest egg, safe withdrawal amounts during retirement, and compares it to your desired income. The calculator factors in inflation and provides year-by-year projections to visualize your financial journey until retirement and beyond.

How accurate are the calculator's projections?

While projections are mathematically sound, they’re estimates based on your inputs and assumed constant return/inflation rates. Real-world market fluctuations aren’t accounted for. The Retirement Calculator tool provides a reasonable approximation for planning purposes, but we recommend revisiting calculations annually or when your financial situation changes significantly for up-to-date projections.

Why is inflation rate important in retirement planning?

Inflation erodes purchasing power over time. A 5% inflation means what costs 100 t o d a y w i l l c o s t 100todaywillcost163 in 10 years. The calculator adjusts your withdrawal amounts for inflation during retirement to maintain your lifestyle. Without this adjustment, you might underestimate your needed savings by 20-30% for long retirement periods.

What's difference between "Annual Return Rate" & "Inflation-Adjusted Return"?

The annual return is your investment’s gross growth rate (e.g., 8%). The inflation-adjusted return (real return) is your true growth after subtracting inflation. If you earn 8% with 5% inflation, your real return is ~2.86%. The calculator uses both – gross returns for accumulation and real returns for withdrawal calculations.

How does the "Income Replacement Ratio" work?

This percentage shows how much of your desired retirement income your projected savings can safely cover. For example, 85% means your withdrawals will cover 85% of your target. Financial advisors typically recommend 70-90% replacement rates, depending on pre-retirement expenses and lifestyle changes expected during retirement.

What investment return rate should I assume?

Historically, S&P 500 averages ~10% annually, but after inflation, it’s ~7%. Conservative investors might use 4-6%, balanced portfolios 6-8%, and aggressive investors 8-10%. The calculator’s default 8% is moderately aggressive. Adjust based on your asset allocation – lower for bond-heavy portfolios, higher for stock-focused investments.

Why does the calculator show decreasing savings during retirement years?

This reflects the natural drawdown of your nest egg as you make annual withdrawals. The Retirement Calculator tool calculates sustainable withdrawals that theoretically prevent outliving your savings. The gradual reduction accounts for both your spending and continued (though diminishing) investment growth during retirement years.

How does the "Safe Withdrawal Rate" calculation work?

The Retirement Calculator uses the “4% rule” principle adjusted for your specific situation. It determines how much you can withdraw annually (increasing with inflation) with high probability of not outliving your savings over 30+ years. Your personal rate varies based on retirement duration, asset allocation, and market conditions.

Can I use this for early retirement planning?

Absolutely! For early retirement, simply input a younger retirement age. The Retirement Calculator will show if your savings rate supports this goal. Early retirees should use more conservative return estimates (5-6%) and plan for longer retirement periods (40-50 years). The year-by-year projection helps visualize long-term sustainability.