Retirement Calculator
Plan your future nest egg and see if you are on track to retire comfortably.
Retirement Projection
Retirement Planning & Nest Egg Guide
Retirement planning is not about hitting a specific age; it's about hitting a specific financial number. Our Retirement Calculator helps you look into the future, projecting how your current savings and monthly contributions will grow over time to form your ultimate retirement nest egg.
The "4% Rule" of Retirement
How do you know how much money you actually need to retire? Financial planners often use the "4% Rule." This rule states that you should be able to safely withdraw 4% of your total retirement portfolio in your first year of retirement, and adjust that amount for inflation in subsequent years, without running out of money for at least 30 years.
To find your target number:
- Determine your desired annual retirement income (e.g., $60,000).
- Multiply that number by 25.
- Target Nest Egg = $1,500,000.
Once you have your target number, use the calculator to see if your current savings rate will get you there by your target retirement age.
The Power of Employer Matches
If your employer offers a 401(k) or similar retirement account match, you should strive to contribute at least enough to capture the full match. This is literally "free money" that instantly provides a 100% return on your investment, accelerating your compound growth significantly.
Impact of Inflation
A million dollars today will not have the same purchasing power 30 years from now. When projecting retirement savings, it is important to factor in inflation. Historically, inflation averages around 2-3% per year. To account for this, you can adjust your "expected return" in the calculator downwards. For example, if you expect the stock market to return 10%, but inflation is 3%, use an "inflation-adjusted return" of 7% in the calculator to see your future money in today's purchasing power.