Estimate how much you'll need to retire comfortably. Adjust your age, savings, annual contributions, and inflation expectations
Average U.S. inflation rate over the past 100 years is approximately 3.1%
Enter your current age, planned retirement age, current savings, annual contribution, expected annual return, and inflation. You'll get an estimate of your retirement savings adjusted for inflation.
Where P = current savings, r = annual interest rate, t = years to retirement, PMT = annual contribution
Saving for retirement doesn't need to be complex. Here are a few common rules that can help you plan smartly:
Many financial advisors suggest saving 15% of your gross income each year for retirement, starting as early as possible. This total includes employer contributions, such as matching 401(k) plans.
Plan to replace about 80% of your pre-retirement income to maintain your lifestyle after retirement. For example, if you earned $60,000 annually, you should aim for about $48,000 per year in retirement.
During retirement, you can typically withdraw 4% of your retirement savings per year to make your money last 30+ years. For example, to withdraw $40,000 a year, you’d need $1,000,000 saved: $40,000 ÷ 0.04 = $1,000,000
| Annual Expenses | Expected Retirement Years | Total Savings Needed |
|---|---|---|
| $40,000 | 25 years | $1,000,000 |
| $50,000 | 30 years | $1,250,000 |
| $60,000 | 20 years | $1,200,000 |
| Year | Value Without Inflation | Value With 3% Inflation |
|---|---|---|
| 10 | $81,445 | $60,415 |
| 20 | $132,665 | $73,530 |
| 25 | $169,318 | $78,914 |
It depends on your lifestyle, expected expenses, and retirement duration. Many experts suggest targeting 70–80% of your pre-retirement income per year.
Yes, inflation affects the value of your savings over time. Adjusting for inflation gives a more realistic estimate.
It's never too late. Start with whatever amount you can and consider increasing your savings yearly or working a bit longer.