Retirement Savings Goal Calculator
Figure out how much you need to save for the retirement you want. This tool helps you set a clear financial target for your future.
Retirement Savings Goal
Estimate how much you need to save for a comfortable retirement.
Learn More About Retirement & Savings
How to Use the Retirement Savings Goal Calculator
- Enter Your Personal Details: Input your current age and your target retirement age.
- Define Your Financials: Provide your current retirement savings, how much you contribute annually, and the annual income you'd like in retirement.
- Set Your Assumptions: Enter your estimated annual return on investments before retirement and your planned withdrawal rate during retirement (4% is a common guideline).
- Click “Calculate Goal”: Get an instant projection of your retirement savings, your total required nest egg, and any potential shortfall or surplus.
Understanding the 4% Rule and Your Nest Egg
The "4% Rule" is a widely used guideline in retirement planning. It suggests that you can safely withdraw 4% of your savings in your first year of retirement, and then adjust for inflation each year after, with a high probability of your money lasting for at least 30 years.
This rule helps us calculate your total required nest egg. For example, if you want $60,000 per year in retirement income, you would divide that by 4%:
$60,000 / 0.04 = $1,500,000
This means you'd need a nest egg of approximately $1.5 million to support your desired lifestyle. Our calculator automates this and projects whether your current savings plan is on track to meet that goal.
What to Do if You're Not on Track
Seeing a retirement shortfall can be daunting, but it's an opportunity to take action. Here are some steps you can take:
- Increase Contributions: Even a small increase in your annual savings can make a huge difference over time due to compound interest.
- Review Your Investments: Ensure your investment strategy aligns with your risk tolerance and time horizon. Younger investors can typically afford to take on more risk for potentially higher returns.
- Adjust Your Timeline: Working a few extra years can dramatically increase your projected savings and reduce the number of years you need to fund. First, find your official Social Security retirement age.
- Re-evaluate Your Goal: Consider if you can live comfortably on a slightly lower annual income in retirement.
- Consult a Professional: A financial advisor can provide personalized strategies to help you reach your goals.
For more tips, see our decade-by-decade retirement guide.