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🌅 Retirement Calculator

Find out how much you will have at retirement — and whether you are on track to retire comfortably based on your current savings and contributions.

Enter Your Values

What you have saved so far
Your regular monthly deposit
Long-term average: 6–8%
Years remaining before retirement
Today's value — for target calculation

How Much Do You Need to Retire?

The most widely used retirement target is based on the 25x rule: multiply your expected annual retirement expenses by 25. This is derived from the 4% safe withdrawal rate — research suggesting you can withdraw 4% of your portfolio annually with high probability of not running out of money over a 30-year retirement.

If you expect to spend $50,000 per year in retirement, your target portfolio is $1,250,000 ($50,000 × 25). Enter your expected annual retirement expenses above to see your personal target and whether your current trajectory reaches it.

How Much Should You Save Each Month?

The standard recommendation is to save 15% of gross income toward retirement, including any employer match contributions. Starting at age 25, consistent 15% savings with average market returns is generally sufficient to retire comfortably at 65. Starting later requires catching up with higher contributions.

  • Starting at 25: 15% of income typically sufficient
  • Starting at 35: closer to 20-25% needed to reach the same outcome
  • Starting at 45: 30-35%+ may be required — maximising tax-advantaged accounts becomes critical

If 15% is not immediately achievable, start at whatever is realistic and increase by 1% each year. The habit and the time in the market matter more than hitting a specific percentage immediately.

The 4% Safe Withdrawal Rate

The 4% rule, derived from the landmark Trinity Study, states that retirees can withdraw 4% of their portfolio in year one and adjust for inflation each year thereafter, with historically high probability of the portfolio lasting 30 years. On a $1,000,000 portfolio, that is $40,000 per year, or $3,333 per month.

Some planners suggest 3-3.5% for retirements longer than 30 years (retiring early) or in lower expected return environments. The rule is a guideline, not a guarantee — actual outcomes depend on the sequence of market returns in the early years of retirement.

Tax-Advantaged Accounts to Prioritise

  • 401(k) / 403(b) (US): Contribute at least enough to capture full employer match — this is an instant 50-100% return on that money
  • IRA / Roth IRA (US): After maximising employer match, contribute to IRA for additional tax advantages
  • TFSA / RRSP (Canada), ISA (UK), Superannuation (Australia): Equivalent tax-sheltered accounts — always prioritise filling these before taxable accounts

Frequently Asked Questions

How much do I need to retire? +
The 25x rule: multiply expected annual retirement spending by 25. Planning to spend $40,000/year → target $1,000,000. Planning to spend $80,000/year → target $2,000,000. This is based on the 4% safe withdrawal rate from the Trinity Study. Add a buffer for healthcare costs, which tend to be the most variable and inflation-exposed expense in retirement.
What investment return should I use for retirement planning? +
For a diversified equity portfolio, 6-7% is a conservative long-term assumption (historical real returns after inflation). Using 7% nominal (before inflation) is reasonable for planning. Avoid assuming more than 8-9% — the historical average includes periods of exceptional returns that may not repeat. Consider stress-testing your plan at 4-5% to understand your downside scenario.
What is the 4% withdrawal rule? +
The 4% rule suggests withdrawing 4% of your portfolio in your first year of retirement, then adjusting for inflation each year. Research from the Trinity Study found this rate had a very high success rate (portfolio lasting 30+ years) across historical market scenarios. A $750,000 portfolio supports $30,000/year under this rule; a $1.5M portfolio supports $60,000/year.
Should I prioritise retirement savings or paying off debt? +
The general order of priority: (1) emergency fund first, (2) capture full employer retirement match — it is an instant guaranteed return, (3) pay off high-interest debt (anything above 7-8% APR), (4) maximise tax-advantaged retirement accounts, (5) invest additional amounts. Low-interest debt (mortgage, student loans below 5%) can be held while investing, since expected investment returns may exceed the debt cost.

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