Retirement Calculator Estimate savings needs, project 401(k) growth, integrate Social Security, and plan withdrawals — wi...

Retirement Calculator

Estimate savings needs, project 401(k) growth, integrate Social Security, and plan withdrawals — with 2025 IRS rules and benchmarks.

Retirement Goal

401(k)/IRA

Social Security

Withdrawals

Current Age

Retirement Age

Current Savings ($)

Annual Contribution ($)

Expected Return (%)

Retirement Years

Annual Salary ($)

401(k) Contribution (%)

Employer Match (%)

Current Balance ($)

Years to Retirement

Age

Estimated SS ($/mo)

Claim Age

FRA

Pension ($/yr)

Portfolio ($)

Withdrawal Rate (%)

Years

$0

Target at Retirement

$0

Projected Balance

$0

Annual Income

—

Gap / Surplus

Savings Growth to Retirement

How Retirement Planning Works

Target Nest Egg Formula**:

$$ \text{Target} = \text{Annual Spending} \times \text{Withdrawal Multiplier} $$

• 4% rule → multiplier = 25 ($1M supports $40K/yr) • 3.5% rule → multiplier = 28.6 ($1.14M supports $40K/yr)

Example** ($80K/yr needed, 25 yrs, 6.5% return): • Target = $80,000 × 25 = **$2M** • Starting at 35 with $50K, $15K/yr → **$1.87M** • Shortfall = **$130K** → increase savings by $1,500/yr

✅ Pro Tip**: Use **Monte Carlo simulations** (not just averages) to test sequence risk — 6.5% avg return ≠ safe 4% withdrawal.

Retirement Red Flags

⚠️ Avoid these dangerous assumptions:

• Ignoring healthcare** — $315K/couple lifetime (Fidelity 2025)
• Overestimating Social Security** — 21% avg replacement rate (not 40%+)
• Fixed 4% withdrawals** — fails in high-inflation, low-return decades
• Zero sequence risk** — retiring in 2000 or 2008 required 3.5% or less

✅ Pro Tips**:

• Use **dynamic spending rules** (e.g., guardrails: ±10% of base)
• Delay SS to 70 if healthy — 8% annual credit is risk-free return
• Convert traditional → Roth in low-income years (e.g., early retirement)

2025 Retirement Benchmarks

Profile	Contribution	35-Yr Balance	Annual Income
$100K Salary	15% + 3% match	$2.1M	$84K (4%)
$120K Salary	20% + 5% match	$3.2M	$128K (4%)
SS Only (Avg)	—	—	$22.9K/yr

📉 Social Security Optimization**:

• Claim at 62 vs. 70: $1,560 → $2,725/mo (**+75%**)
• Breakeven: age 80 (if live to 85, gain $76K lifetime)

📉 4% Rule Survival (Trinity Study + updates)**:

• 60/40 portfolio, 30 yrs: **95% success** at 4%
• 75% stocks, high inflation: **82% success** at 4%

How to Use This Calculator

➡️ Retirement Goal

“I’m 35, want $80K/yr for 25 yrs — how much do I need to save?”

➡️ 401(k)/IRA

“$100K salary, 10% + 3% match — what’s my projected balance at 65?”

➡️ Social Security

“SS $2,200/mo at 67 — what if I wait to 70?” (→ $2,728/mo)

➡️ Withdrawals

“$1.5M portfolio — is 4% safe for 30 years?” (Yes, 95% confidence)

Note: Uses 3% inflation, 6.5% nominal return (3.5% real), Monte Carlo-lite logic. Assumes annual rebalancing, no taxes on growth.