Retirement Savings Calculator, Growth & 4% Target

The 4% Rule

The 4% rule is commonly used as a starting heuristic: a 4% first-year withdrawal implies a portfolio target of 25 times annual spending. Outcomes depend on the time horizon, spending pattern, taxes, fees, portfolio, and market returns, so use it to compare scenarios rather than as a promise of a safe withdrawal.

Savings Benchmarks by Age

Tax-Advantaged Accounts

• 401(k)/403(b): $24,500 limit (2026). Many employers match 3-6%.
• Traditional IRA: $7,500 limit in 2026; the $1,100 catch-up makes the age-50+ limit $8,600. Deductibility depends on income and plan coverage.
• Roth IRA: $7,500 limit in 2026; the $1,100 catch-up makes the age-50+ limit $8,600. Eligibility depends on income.
• HSA: $4,400 self-only / $8,750 family for 2026. Triple tax advantage.

Key Strategies

• Use the calculator to compare a higher contribution, a later retirement age, or a lower return assumption.
• Check plan rules, fees, and any employer contribution with your plan documents.
• Keep a record of the return, income, and time-horizon assumptions behind a decision.

When to Use This Calculator

• Annual review: Check once a year if your projected savings still hit your retirement income target.
• After a raise: See how increasing monthly contributions by $100-200 moves your retirement date.
• Planning a career change: Model how a salary decrease affects your long-term trajectory.

Real-World Examples

Example 1: Age 35, $80,000 saved, $600/month contribution at 7% nominal return, retire at 65. Projected savings are about $1.38M. A 25× target for $60,000 annual income is $1.5M, leaving a shortfall of about $119,000; the required monthly contribution for that target is about $697 under the same assumptions.

Example 2: Age 45, $50,000 saved, $1,200/month at 7% nominal return, retire at 67. Projected savings are about $982,000. A 25× target for $70,000 annual income is $1.75M; the required monthly contribution for that target is about $2,430 under the same assumptions.

Limitations & Assumptions

• Uses nominal dollars and does not apply a separate inflation adjustment.
• Assumes constant monthly contributions throughout. Gaps in employment are not modeled.
• The 25× target is a planning heuristic, not a personalized withdrawal recommendation. Different horizons and spending needs can produce different results.
• Does not include Social Security income, add your projected benefit as a separate offset to the income target.

Data Sources

Savings benchmarks from Fidelity Investments retirement savings guidelines. The 4% rule comes from Bengen (1994) and the Trinity Study. 2026 account contribution limits follow IRS cost-of-living adjustments. Return estimates reflect historical S&P 500 returns (Vanguard, 1926-present).

Related Guides

• Financial Planning Basics - the fundamentals of retirement planning, emergency funds, and investing
• Understanding Compound Interest - why starting early matters more than investing more

Related Data

Compare pension fund data and retirement readiness by state at SSA retirement planner. Explore cost of living data to plan where to retire at BEA Regional Price Parities.

Disclaimer: This calculator provides estimates for educational purposes only. Consult a financial advisor for personalized retirement planning advice.