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Retirement Calculator
Calculate how much you need to retire comfortably. See your retirement savings projections and monthly income based on the 4% rule. Updated for 2025.
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Retirement Savings
How Much Do You Really Need to Retire?
The average American needs $1.7 million to retire comfortably, according to recent surveys. But that number varies wildly based on your lifestyle, location, and retirement age. This calculator uses the 4% Safe Withdrawal Rate—a rule of thumb suggesting you can withdraw 4% of your savings annually for 30 years without running out.
💡 Expert Tip from David Chen, CFA
If your employer offers 401(k) matching, contribute at least enough to get the full match—it's free money. For example, if they match 50% up to 6% of your salary, contribute 6%. That's an instant 50% return. I've seen clients leave $100,000+ on the table over a career by not claiming this.
The 4% Rule (and Why It's Controversial)
The 4% rule comes from the Trinity Study, which analyzed 30-year retirement periods from 1926-1995. It found that a 4% annual withdrawal rate (adjusted for inflation) had a 95% success rate. However, in 2025's low-interest environment, some experts suggest 3.5% is safer. Our calculator uses 4% for consistency, but consider being more conservative.
⚠️ Common Mistake: Ignoring Healthcare Costs
Most people forget that Medicare doesn't cover everything. Fidelity estimates the average 65-year-old couple will spend $315,000 on healthcare in retirement (not including long-term care). Budget an extra $500-800/month for premiums, prescriptions, and out-of-pocket costs.
How to Catch Up If You're Behind
- Max out catch-up contributions at 50: You can add an extra $7,500/year to your 401(k) ($30,500 total in 2025).
- Delay Social Security to 70: Your benefit increases 8% per year after full retirement age.
- Consider working part-time in early retirement: Even $15,000/year bridges gaps.
- Downsize your home: Unlock equity and reduce property taxes/maintenance.
Retirement Savings Benchmarks by Age
Fidelity suggests the following multiples of your salary:
- Age 30: 1x your salary
- Age 40: 3x your salary
- Age 50: 6x your salary
- Age 60: 8x your salary
- Age 67: 10x your salary
References
- Trinity Study. Determining Withdrawal Rates Using Historical Data.
- Fidelity Investments. How Much Do I Need to Retire?
Reviewed by David Chen, CFA
Chartered Financial Analyst
David specializes in retirement planning and has guided hundreds of clients toward financial independence.
Frequently Asked Questions
How much do I need to retire at 65?
Most financial advisors suggest 8-10x your annual salary by retirement. The 4% rule says if you have $1 million, you can withdraw $40,000/year (4%) for 30 years. So work backward: need $60k/year? You need $1.5 million saved.
What's the 4% rule?
Withdraw 4% of your retirement savings annually and it should last 30 years. Based on the Trinity Study analyzing historical market returns. In 2025's low-interest environment, some experts suggest 3.5% is safer.
Am I behind on retirement saving?
Fidelity's benchmarks: 1x salary at 30, 3x at 40, 6x at 50, 8x at 60. Behind? Contribute enough for employer match, max out catch-up contributions at 50 ($7,500 extra), and consider delaying retirement a few years.