How the retirement calculator works
- Saving years: your current savings grow each month at the pre-retirement return, and your monthly contribution is added. The contribution rises once a year by the increase you set.
- Your target: the yearly income you want, minus Social Security and pensions, is grown with inflation to your retirement year.
- Retirement years: that income is withdrawn each year, rising with inflation, while the rest stays invested at the retirement return. The chart shows the balance until your planning age.
- What you need: the calculator finds the savings needed at retirement to fund every year of income, and the extra monthly saving that would close any gap.
needed = Σ yearly income × (1 + inflation)ᵏ ÷ (1 + return)ᵏ
US full retirement age by birth year
| Year of birth | Full retirement age |
|---|---|
| 1943–1954 | 66 |
| 1955 | 66 and 2 months |
| 1956 | 66 and 4 months |
| 1957 | 66 and 6 months |
| 1958 | 66 and 8 months |
| 1959 | 66 and 10 months |
| 1960 and later | 67 |
If you were born on January 1, use the previous year. Source: Social Security Administration.
Ways to close a shortfall
- Save a little more each month, and raise contributions with every pay rise.
- Capture your full employer 401(k) match; see the 401(k) calculator.
- Work one to three years longer: you save for longer and draw down for fewer years.
- Plan a lower income in retirement, or delay Social Security to increase your benefit.
Frequently asked questions
How much do I need to retire?
It depends on the income you want, other income such as Social Security, how long retirement lasts and investment returns. This calculator works out the savings needed to fund your chosen income, rising with inflation, until your planned age.
What return should I assume?
Long-term plans often use a conservative return, such as 5 to 7 percent a year before retirement and a lower rate after, because portfolios usually hold more bonds later. Returns are never guaranteed, so try a few scenarios.
Why does inflation matter?
Prices rise over time, so $60,000 today will buy less in 30 years. The calculator grows your target income with inflation and also shows your savings in today's dollars, so you can compare like with like.
When can I get full Social Security benefits?
Your full retirement age depends on your birth year: 66 for people born 1943 to 1954, rising by two months a year to 67 for anyone born in 1960 or later. Use the "Retirement date" tab to find the exact date.
Is this financial advice?
No. It is an educational planning tool with simplified assumptions about returns, inflation and taxes. Talk to a qualified financial adviser before making decisions.