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Retirement Calculator – Are You Saving Enough to Retire?

Enter your age, savings, monthly contributions and the income you want in retirement. The calculator projects your savings to retirement, works out how much you need, shows any shortfall and tells you how long the money is likely to last.

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How to use the retirement calculator

  1. Enter your age, the age you plan to retire and the age to plan until (90 is a common safe choice).
  2. Enter your retirement savings now and how much you save each month, plus a yearly increase if your saving grows with your pay.
  3. Enter the expected returns before and after retiring, and inflation.
  4. Enter the yearly income you want and any pension or Social Security you expect, both in today’s money.

The result shows your projected savings at retirement, the amount needed, any surplus or shortfall, and the age your money runs out if it does.

How the calculation works

Before retiring, your balance grows each year by the return, and your contributions are added:

Balance next year = Balance × (1 + return) + yearly saving

At retirement, the gap between the income you want and other income is raised with inflation. The calculator then finds the lump sum that can pay that rising income every year until your plan-until age, earning the after-retirement return.

Worked example

  • Age 35, retiring at 65, planning to 90
  • $50,000 saved, $750 a month, rising 2% a year
  • Return 6% before and 4.5% after retiring, inflation 2.5%
  • Wants $50,000 a year, expects $20,000 from Social Security (today’s money)

Projected savings at 65 ≈ $1.20 million; needed ≈ $1.26 million. The shortfall of about $61,000 means the money runs out around age 88. Saving about $63 more a month closes the gap.

Ways to improve your retirement outlook

  • Start or increase contributions now — early money compounds the longest.
  • Capture any employer match; see the 401(k) calculator.
  • Use tax-advantaged accounts such as a 401(k), IRA or Roth IRA in the US, a SIPP or workplace pension in the UK, or your country’s equivalent.
  • Work a little longer — each extra year adds savings and shortens retirement.
  • Keep fees low.

Limits of any retirement calculator

Real returns jump around from year to year, and the order of good and bad years matters. Health costs, housing and family needs change. Use this as a starting point and review it every year or after big life changes; a qualified financial adviser can build a fuller plan. See our disclaimer. To see how inflation changes your target, try the inflation calculator.

Frequently asked questions

How much do I need to retire?

It depends on the income you want, other income such as a pension or Social Security, how long retirement lasts, inflation and investment returns. This calculator works out the lump sum needed at retirement to pay your income gap until your chosen age.

What is the 4% rule?

A rule of thumb from US research: withdrawing 4% of your savings in the first year of retirement, then raising it with inflation, has historically lasted about 30 years. It suggests you need about 25 times your yearly income gap. It is a guideline, not a guarantee.

What return should I assume?

Many planners use 5% to 7% a year before retirement for a stock-heavy portfolio and a lower figure afterwards as investments become more cautious. Try a pessimistic case too.

Are the results in today’s money?

The income you want and your pension are entered in today’s money. The calculator grows them with inflation, so the balances shown are in future money — they look large because prices will be higher too.

What if I have a shortfall?

You can save more each month, retire later, plan for a lower income, or aim for a higher return with more risk. The calculator shows roughly how much extra monthly saving would close the gap.

Does this include taxes?

No. Withdrawals from pre-tax accounts such as a 401(k) or a traditional pension may be taxed. Enter the income you want before tax, or add a margin.

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