💰 Financial
Retirement Calculator
Determine if you are on track for retirement. Calculate how much your savings will grow and whether your nest egg will support your desired retirement income.
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Formula
Retirement Goal = Annual Expenses / Safe Withdrawal RateAnnual Expenses- Estimated spending per year in retirement
Safe Withdrawal Rate- Usually estimated between 3% and 4%
Example
The 4% Rule
You determine you need $60,000 a year from your investments to supplement Social Security.
- Using the 4% rule of thumb, divide your required income by 0.04 (or multiply by 25).
- Calculation: $60,000 × 25 = $1,500,000.
- Result: Your target retirement portfolio size is $1.5 million.
Frequently Asked Questions
It is the percentage of your portfolio you can withdraw in your first year of retirement (adjusting for inflation thereafter) without a high risk of running out of money over a 30-year period. 4% is a historical benchmark, though some prefer 3.5% for added safety.
Inflation silently reduces your purchasing power. If inflation averages 3%, something that costs $50,000 today will cost over $90,000 in 20 years. Your investments must outpace inflation.