Last updated ·Published ·By the WiserWork team
Retirement Savings Calculator
Will your savings be enough? Project your balance to retirement and the income it buys
| Age | Balance (nominal) | Today's dollars |
|---|
Retirement planning collapses into one honest question: what will be in the account on the day the paychecks stop, and what income can it safely produce? This calculator answers both — projecting your balance with compound growth and contributions, deflating it into today's purchasing power (the step most calculators skip), and converting it to sustainable monthly income under the 4% rule.
The Assumptions, Defended
| Default | Why |
|---|---|
| 7% return | Long-run US diversified stock portfolio average (~10% nominal) blended with bonds; conservative for young savers, honest for balanced portfolios |
| 2.5% inflation | Between the Fed's 2% target and the long-run 3% average |
| 4% withdrawal rule | The Trinity-study standard: 4% initial withdrawal, inflation-adjusted, survived every historical 30-year US retirement in a 50/50+ stock portfolio |
How Much Is 'Enough'? The Benchmarks
- The 25× rule (the 4% rule inverted): annual spending × 25 = the nest egg that supports it. $60,000/yr of retirement spending needs ~$1.5M in today's dollars — minus whatever Social Security covers (see the Social Security Estimator; for most earners it replaces $2,000–3,500/mo, dramatically shrinking the savings target).
- Age checkpoints (Fidelity-style, multiples of salary saved): 1× by 30, 3× by 40, 6× by 50, 8× by 60, 10× by 67. Behind is normal — the fix is rate, not despair.
The Levers, Ranked by Power
- Start date beats everything. $800/mo from 25 to 67 at 7% builds ~$2.4M; starting at 40 builds ~$0.9M. The first decade of contributions does the heaviest lifting because it compounds longest.
- Contribution rate is the lever you control this week — each extra $100/mo adds roughly $120k over 32 years at 7%.
- The employer match is a 100% instant return — always capture all of it before any other financial goal (the 401(k) Contribution Calculator optimizes this).
- Fees are a silent lever: 1% of annual expenses compounds into ~20% less final wealth over a career — see the ETF Expense Ratio Calculator.
- Retirement age: each year later adds contributions, adds growth, and shortens the funded period — working to 68 instead of 65 often changes a marginal plan into a comfortable one.
How to Use the Calculator
- Enter age, target retirement age, current balance and total monthly contributions (yours + employer match).
- Keep the return/inflation defaults or stress-test at 5%/3%.
- Read the today's-dollars balance and monthly income — compare that income + expected Social Security against your current spending.
- If there's a gap, move the contribution slider until it closes — that number is your action item.
Frequently Asked Questions
Is 7% a realistic return assumption?
For a stock-heavy portfolio over decades, yes — the S&P 500 has returned ~10% nominal (~7% real) over long periods. Bonds lower it; sequence risk means real journeys are bumpy. Run 5% as your pessimistic case; if the plan works at 5%, it's robust.
Should I use nominal or today's-dollars numbers?
Today's dollars, always, for judging sufficiency — $2M in 30 years buys roughly what $1M does today at 2.5% inflation. This calculator shows both precisely so the big nominal number doesn't flatter you.
Does the 4% rule still hold?
It remains the best-tested starting point; recent research argues 3.3–5% depending on valuations, flexibility and horizon. Treat 4% as a planning yardstick, not an autopilot — flexible spending in bad markets is what actually protects portfolios.
How does Social Security fit in?
As a floor: estimate your benefit, subtract it from spending needs, and size the nest egg for the remainder. Most households need far less than the headline 25× number once Social Security is counted.
What about taxes on withdrawals?
Traditional 401(k)/IRA withdrawals are taxed as income; Roth withdrawals aren't. If most savings are pre-tax, mentally haircut the income figure by your expected retirement tax rate — or model the accounts in the Roth vs Traditional tool.
I'm behind the checkpoints — what actually works?
In order: capture all employer match, raise your rate 1% every raise, use catch-up contributions at 50+ ($7,500 extra for 401(k)s), delay retirement 1–3 years, and let Social Security's delayed credits (8%/yr from 67 to 70) do heavy lifting.
Is my information private?
Yes — every figure computes locally in your browser.
The plan is three numbers: today's-dollars balance, the income it buys, the gap to your spending. Close the gap with rate and time — the two levers that always work — and re-run this once a year. Compounding does the rest without your attention.