Retirement Savings Calculator
See your projected retirement savings, what it could provide you each year, and whether you're on track. Works in any currency.
Check Your Retirement Progress
Enter your current plan and your retirement income goal.
How This Calculator Works
This projects your current savings and ongoing contributions forward, using compound growth, to the year you plan to retire. It then applies a commonly used guideline called the 4% rule to estimate how much annual income your savings could sustainably provide without running out too quickly.
The 4% rule, explained simply
The idea is that withdrawing about 4% of your savings in the first year of retirement, then adjusting that amount for inflation each year after, has historically had a good chance of lasting 30 years without depleting the balance. It's a guideline, not a guarantee, but it's a widely used starting point for retirement planning.
A Quick Example
Say you're 30 years old, plan to retire at 65, currently have $15,000 saved, contribute $300 a month, and expect a 7% average annual return.
- Years until retirement: 35
- Projected savings at retirement: roughly $600,000
- Estimated sustainable annual income (4% rule): roughly $24,000 a year
If your desired retirement income is $40,000 a year, this plan would fall short. Increasing the monthly contribution, working a few years longer, or adjusting the desired income are the main levers to close that gap.
How to Close a Retirement Gap
- Increase your monthly contribution. Even a modest increase, especially if made early, compounds significantly by retirement.
- Delay retirement by a few years. More years of contributions and growth, combined with fewer years of withdrawals, has an outsized effect.
- Revisit your expected return. A more aggressive (and historically riskier) investment mix may offer a higher expected return, but comes with more year-to-year volatility.
- Adjust your desired retirement income. A more modest lifestyle target can also close the gap, especially combined with other income sources like a pension or government benefit.
Common Mistakes People Make
- Starting late and trying to catch up all at once. Time in the market is a bigger lever than almost any contribution increase.
- Ignoring other income sources. Pensions, government retirement benefits, or rental income can supplement savings and reduce how much your personal savings need to cover.
- Assuming expenses drop dramatically in retirement. Some costs fall, but others, like healthcare, often rise. Planning around your actual expected lifestyle is safer than a rough guess.
- Not revisiting the plan. Income, goals, and markets change. Recheck this calculation every few years.
Frequently Asked Questions
Yes, the growth math is currency-neutral. Retirement account types and government benefits vary a lot by country, so treat this as a general savings projection rather than a country-specific retirement plan.
It's a widely used starting guideline, not a guarantee. Some planners now suggest a slightly more conservative rate depending on market conditions and how long retirement is expected to last. Treat it as a reasonable estimate to plan around, not a fixed rule.
Not directly in the growth projection. For a more conservative, inflation-adjusted estimate, you can lower the expected annual return by 2-3 percentage points before calculating.
Add their current combined balance into "current retirement savings," and combine your total monthly contributions across all of them for the most accurate projection.
Once a year, or after any major change: a new job, a change in income, or a significant shift in your savings rate.
Want to go further? Try the Compound Interest Calculator to explore different contribution scenarios.