Retirement
Retirement Savings Calculator
Figure out how much you need to save each month to retire on your terms. Enter your age, current savings, income, and target retirement age — we'll show you the monthly contribution to get there.
Retirement
Retirement Savings Calculator
Result
Saving for retirement is one of the highest-stakes financial decisions you'll make, and the math is unforgiving: a 30-year-old who waits 10 years to start saving will need to contribute roughly twice as much each month to end up at the same retirement balance as someone who started at 30. This calculator translates your specific situation into a concrete monthly savings target.
The math behind the result
You enter:
- Current age and target retirement age.
- Current retirement savings (401(k), IRA, Roth IRA balances combined).
- Current annual income (for replacement-income targeting).
- Expected annual return, typically 5-7% real for a diversified portfolio.
- Income replacement target (the percentage of current income you'll need in retirement, usually 70-80%).
The calculator computes your retirement portfolio target, then works backwards to find the monthly contribution needed to reach it. It accounts for compounding on your current balance plus future contributions over the time horizon.
How much do you actually need to retire?
Two competing frameworks dominate:
You'll need about 70-80% of your pre-retirement income each year. Earning $80,000? Plan for $56,000-$64,000/year in retirement. Multiply by 25 (the 4% rule) to get your portfolio target: $1.4M-$1.6M.
Save 1× your salary by age 30, 3× by 40, 6× by 50, 8× by 60, and 10× by 67. So at $80,000 income, you'd aim for $480,000 by 50 and $800,000 by 67.
Both are starting points, not gospel. Real retirement needs depend on whether your mortgage is paid off, how much you'll spend on travel, healthcare costs, geographic location, and whether you have a partner with their own retirement income. Most people find their actual retirement spending lands somewhere between 60-90% of pre-retirement income.
The 401(k) match is free money
If your employer offers a 401(k) match — typically matching 50-100% of your contribution up to 3-6% of salary — contributing enough to get the full match is the highest-return investment available to most workers. A 100% match doubles your money instantly before any market returns happen.
The math: at $80,000 salary with a 100% match up to 5%, contributing 5% ($4,000/year) gets you a free $4,000 from your employer. That's an 80% first-year return ($4,000 invested → $8,000 invested) before any market growth. Even if you can't max out a 401(k), capturing the full match should be the first priority.
Roth vs Traditional: the tax tradeoff
Traditional 401(k)/IRA contributions reduce your taxable income now; you pay tax on withdrawals in retirement. Roth contributions are made with after-tax money; withdrawals (and growth) are tax-free. The choice depends on your tax bracket now versus expected bracket in retirement:
- Use Roth if you're early-career, in a low-to-medium tax bracket, and expect to be in a higher bracket later. Lock in today's lower rate.
- Use Traditional if you're in your peak earning years, in a high bracket (32%+), and expect to be in a lower bracket in retirement. Defer to the lower future rate.
- Use a mix if you're uncertain. Most financial planners suggest having both, since tax laws change and so do retirement spending patterns.
The cost of starting late
Starting at 25: ~$380/month
Starting at 35: ~$820/month
Starting at 45: ~$1,920/month
Starting at 55: ~$5,750/month
Each decade of delay roughly doubles or triples the monthly contribution required. If you're starting late, three things help: maximize catch-up contributions (the IRS allows additional contributions for ages 50+), delay Social Security to age 70 (which boosts the eventual benefit by 24-32%), and consider working part-time in early retirement to reduce withdrawals.
Where Social Security fits in
The Social Security Administration's calculators are a good source for your specific benefit estimate. As a rough guide:
- Average current benefit: about $1,900/month at full retirement age (67 for most people).
- Maximum benefit: about $3,800/month at age 70 for top lifetime earners.
- Starting at 62 cuts your benefit by 25-30% permanently.
- Delaying past full retirement age boosts the benefit by 8% per year, up to age 70.
For lower-income workers, Social Security can replace 40-50% of pre-retirement income. For high earners, it tops out around 25-30% — so personal savings has to do more of the work.
What this calculator can't account for
- Healthcare costs before Medicare. If you retire before 65, ACA premiums can run $1,000-$2,000/month per person without subsidies.
- Long-term care. Roughly 70% of people over 65 will need some form of long-term care; nursing home care averages $90,000+/year and isn't covered by Medicare beyond limited rehab.
- Tax planning for required minimum distributions (RMDs), which kick in at age 73 from traditional retirement accounts and can push you into higher tax brackets.
- Lifestyle inflation in retirement. Many retirees spend more in their first 5-10 years (travel, hobbies, kids' weddings) than later years.
Frequently asked questions
How much do I need to retire?
A common target is 25 times your expected annual retirement spending, based on the 4% safe withdrawal rule. If you'll spend $60,000/year in retirement, you'd need $1.5M. The replacement income approach suggests 70-80% of your pre-retirement income, so a $100,000 earner would target $70,000-$80,000/year in retirement and roughly $1.75M-$2M in savings.
How much should I save per month for retirement?
It depends heavily on your current age and target retirement age. As a rough starting point, financial planners suggest 15% of gross income (including any employer match) starting in your 20s, 20% in your 30s, and 25%+ if you start in your 40s. Use the calculator above for a specific number based on your situation.
Should I contribute to a 401(k) or Roth IRA first?
If your employer offers a 401(k) match, contribute enough to get the full match first — it's free money. After that, many advisors suggest filling a Roth IRA next (because of tax-free growth and withdrawal flexibility), then returning to maximize the 401(k). Annual contribution limits in 2024: $23,000 for 401(k) ($30,500 if age 50+), $7,000 for IRA ($8,000 if age 50+).
Can I retire on $1 million?
Yes, under specific conditions. Using the 4% rule, $1M supports about $40,000/year of withdrawals. That's livable for many people in low-to-moderate cost-of-living areas, particularly with Social Security as additional income. It's tighter in high-cost areas or with significant healthcare needs. Most people targeting traditional retirement aim for $1M-$2.5M depending on lifestyle expectations.
Is it too late to start saving for retirement at 50?
Not too late, but the math gets aggressive. To reach $500,000 by age 65 starting from zero at 50, you'd need to contribute roughly $1,750/month at a 7% return. The IRS allows catch-up contributions for ages 50+: an extra $7,500/year on top of the regular 401(k) limit and an extra $1,000 on top of the regular IRA limit. Delaying Social Security to 70 also helps significantly.
How does Social Security fit into retirement planning?
For lower-income workers, Social Security replaces 40-50% of pre-retirement income. For high earners, it tops out at roughly 25-30% replacement. Most financial planners treat it as supplemental income rather than a foundation, especially given long-term funding uncertainty. Plan your savings as if you'll need to cover most of your retirement yourself; Social Security becomes welcome additional income on top.
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WalletCalcs provides educational estimates only. Results are not financial, tax, lending, legal, or investment advice. Always confirm important decisions with the appropriate professional or provider.