Retirement Calculator
Plan for your future by calculating how much you need to save for retirement.
Current Age & Retirement Age
Enter your current age and when you plan to retire.
Current Savings & Contributions
Enter your current retirement savings and how much you contribute annually.
Return Rates
Estimate your investment returns before and during retirement.
Income Replacement
Specify what percentage of your current income you'll need in retirement.
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Understanding Retirement Planning
The Importance of Retirement Planning
Retirement planning is the process of determining retirement income goals and the actions and decisions necessary to achieve those goals. It includes identifying sources of income, estimating expenses, implementing a savings program, and managing assets and risk.
The 4% Rule
The 4% rule is a guideline used to determine how much a retiree should withdraw from a retirement account each year. This rule seeks to provide a steady income stream while maintaining an account balance that keeps income flowing through retirement. According to this rule, you withdraw 4% of your retirement savings in the first year of retirement, then adjust that amount for inflation each subsequent year.
Factors That Affect Retirement Planning
Several factors can affect your retirement planning:
- Age when you start saving
- Desired retirement age
- Life expectancy
- Retirement lifestyle and expenses
- Inflation
- Investment returns
- Social Security and other income sources
- Healthcare costs
Types of Retirement Accounts
There are several types of retirement accounts available, each with its own tax advantages and rules:
- 401(k) and 403(b) plans
- Traditional IRAs
- Roth IRAs
- SEP IRAs
- SIMPLE IRAs
- Solo 401(k)s
It's important to understand the differences between these accounts and choose the ones that best fit your retirement strategy.