Retirement Calculator

Are you saving enough for your golden years? Use our retirement calculator to stay on track and reach your financial goals.

Retirement details
$
$
$
10% of monthly income
$
70% of pre-retirement income
$

Retirement savings at age 67

What you'll have

$878,929

What you'll need

$1,647,500

AGE

What you'll have
What you'll need

Retirement Calculator

NP
By Nathan Paulus
Edited by Venus Zoleta

Updated: January 23, 2025

Advertising & Editorial Disclosure

How to Use MoneyGeek’s Retirement Calculator

To use the MoneyGeek Retirement Calculator, enter details about your finances and plans. Include your age, annual income, current retirement savings, monthly contributions, retirement age and life expectancy. Add information on pre- and post-retirement return rates, inflation and other income sources.

After you've filled out the required fields, our tool will show how your retirement savings might grow over the years. It provides actionable insights, such as when your savings could run out and what changes — like contributing more or retiring later — can help improve your finances. Try various scenarios to tailor a retirement plan to your needs.

  1. 1

    Enter your age

    Your current age determines the time horizon for your savings to grow before retirement. Starting younger allows your investments to take full advantage of compounding, leading to significant growth over time. If you’re starting later, focus on higher contributions or retiring slightly later to maximize your financial security.

  2. 2

    Provide your annual pre-tax income

    This step factors in how much money you earn before taxes each year to set realistic savings goals. If your income varies, use an average for more accurate projections. Your income level affects how much you can save for retirement while maintaining your current lifestyle.

  3. 3

    Add your current retirement savings

    Include the combined total of all funds set aside for retirement, such as 401(k) and IRA balances, along with any other designated savings. Providing this figure helps our retirement savings calculator project how your existing assets, paired with future contributions and investment returns, can support your retirement goals. Account for all relevant accounts for the most accurate projections.

  4. 4

    Specify your monthly contribution

    A rule of thumb is to contribute at least 10% of your monthly income toward retirement savings, but increasing this amount can have a significant impact over time. Enter your contribution in the calculator to show how consistent saving — coupled with compounding — can accelerate your progress toward financial goals.

  5. 5

    Estimate your monthly budget in retirement

    Many suggest planning for 70% to 80% of your pre-retirement income to sustain your standard of living after retiring. This figure should cover essentials like housing and health care in retirement, as well as discretionary expenses such as travel. Include this estimate to assess whether your projected savings will meet your expected needs or require adjustments.

  6. 6

    Include any other retirement income

    You can leave this field blank or include figures for additional income sources like Social Security, pensions or annuities. While optional, adding these details provides a more accurate projection of your retirement finances.

    For instance, Social Security offers consistent monthly payments based on your work history, and pensions or annuities can supplement your savings with steady income streams. This input helps clarify how much of your budget can be supported by these sources versus your savings.

  7. 7

    Set your retirement age

    The age when you plan to retire impacts how long your investments can grow and how many years your savings need to last. If you were born in 1960 or later, full Social Security benefits become available at age 67. Delaying retirement allows more time for compounding, potentially increasing your nest egg, while retiring earlier may require larger contributions upfront to account for a longer withdrawal period.

  8. 8

    Estimate your life expectancy

    Including your life expectancy helps estimate how long your savings must last. Use average figures based on your gender, lifestyle and family history. Planning for a longer retirement reduces the risk of running out of money and boosts financial security.

  9. 9

    Enter your pre-retirement rate of return

    This input reflects how much your investments might grow annually before you retire. A portfolio with a mix of stocks and bonds typically achieves an average annual return of 6% to 8% over the long term. For a clearer picture of your retirement readiness, enter a realistic rate to project your savings growth during this period.

  10. 10

    Input your post-retirement rate of return

    After retirement, investment strategies often shift to prioritize preserving your savings over aggressive growth. A portfolio focused on fixed-income assets usually yields an average annual return of 3% to 5%. Including this figure allows the calculator to estimate how your savings will grow or sustain you during retirement.

  11. 11

    Adjust for inflation

    Inflation gradually reduces the purchasing power of your money, so account for it in your retirement planning. In the U.S., the current average inflation rate is around 2.7%. By including this rate in your calculations, the tool provides a more realistic view of how much you’ll need to sustain your lifestyle over time. You can adjust this figure based on economic forecasts or personal research to tailor your plan further.

  12. 12

    Factor in annual income increases

    Salary raises or bonuses can significantly boost your retirement savings. The calculator can factor in an average annual income increase to project higher future contributions. For example, a 3% yearly raise can significantly grow your retirement balance over time, making it a key consideration in long-term planning.

How to Read the Results

The retirement calculator provides two clear views to help you assess your financial readiness.

The graph tracks your savings growth over time, comparing “What You’ll Have” with “What You’ll Need.” If a gap appears, it signals the need for adjustments like increasing contributions or delaying retirement. This view helps you quickly spot trends, such as whether your savings can keep up with your future expenses.

The summary provides a breakdown of key metrics, including your total projected savings, the monthly contributions required to meet your target and the estimated age when your savings might run out. Presenting these figures side by side highlights where your plan aligns — or falls short — and offers opportunities to explore solutions.

Both views allow you to experiment with inputs in real-time. Adjusting contributions or retirement age by even a small amount can create meaningful changes in your results. These free insights help you make well-informed decisions to build a retirement strategy that suits your needs.

How Much Should You Save for Retirement?

Save 10% to 15% of your annual income, including employer contributions, for retirement. Aim to replace 70% to 80% of your pre-retirement income to maintain your lifestyle.

Starting early helps your savings grow through compounding, but late starters can still catch up by increasing contributions or focusing on growth investments. Follow these three key rules for retirement saving:

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    Rule 1: Save 10% to 15% of your income

    Allocating 10% to 15% of your annual income is a straightforward way to grow your retirement wealth. For example, earning $60,000 annually and saving $6,000 to $9,000 annually can significantly increase your nest egg.

    Consistent contributions are key, especially when paired with employer matches or automated savings. This rule offers a manageable starting point that keeps your retirement goals on track.

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    Rule 2: Aim for 70% to 80% of pre-retirement income

    To maintain your lifestyle after retirement, plan to replace 70% to 80% of your pre-retirement income. This target accounts for lower work-related costs while ensuring you can cover essentials like housing, health care and leisure.

    Earning $80,000 annually, for instance, means planning for $56,000 to $64,000 in yearly retirement income. Align your savings and income sources, such as Social Security or pensions, with this benchmark to create a sustainable retirement plan.

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    Rule 3: Start early, benefit from compound interest

    Saving early gives your money more time to grow through compounding. A 25-year-old saving $200 monthly at a 7% return could accumulate over $500,000 by age 65. Waiting until 35 reduces that amount to around $250,000.

    If you start later, higher contributions or growth-focused investments can help, but starting early gives the best results.

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SAMPLE COMPUTATION

Consider a 40-year-old earning $80,000 annually with $50,000 in current retirement savings. They contribute 10% of their income ($667 monthly) and plan to retire at 67, targeting a monthly retirement budget of $4,667. With $1,500 in monthly Social Security benefits and assumptions of a 6% pre-retirement return, 4% post-retirement return, 3% inflation rate and 2% annual income increase, the calculator projects how their savings will grow and whether they align with retirement goals.

By age 67, their savings would grow to $50,000, leaving a gap of $1,065,958 compared to the recommended $1,115,958. Retiring at 60 would save $146,206, far below the recommended $1,372,488, creating a shortfall of $1,226,282.

To retire at 67 with enough funds to last until age 90, the calculator suggests increasing monthly contributions to $5,650. Though this may seem daunting, small changes like raising contributions by $100 to $200, adjusting investment strategies or delaying retirement can significantly reduce the gap and boost financial security.

Common Concerns in Retirement

Retirement comes with challenges like managing expenses, planning for longer life spans and navigating financial uncertainties. However, with thoughtful planning, these issues can be addressed effectively.

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    Affordability

    To prevent your savings from falling short, calculate your long-term needs, account for inflation and diversify income streams like Social Security, pensions or investments. Regularly review your budget and adjust spending habits or contributions to sustain your savings over time.

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    Life expectancy

    Planning for a 20 to 30-year retirement requires strategies like conservative withdrawal rates and investments that balance growth and stability. Use tools to estimate how far your savings will stretch to adapt to the realities of a longer life span.

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    Economic uncertainties

    Diversify your investments across asset classes like stocks, bonds and real estate to reduce risks during market fluctuations. Practicing smart spending, staying flexible with your budget or supplementing income through part-time work can also provide stability in unpredictable economic conditions.

Retirement Calculator FAQ

Planning for retirement involves understanding how much to save, when to retire and what you’ll need. Here are answers to some common questions about saving for retirement.

Can I retire at 60 with $500K?

How long will $1 million last in retirement?

Is $600K enough to retire at 70?

What are the three rules for retirement?

What is the simple formula for calculating retirement savings?

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About Nathan Paulus

Nathan Paulus headshot

Nathan Paulus is the Head of Content Marketing at MoneyGeek, with nearly 10 years of experience researching and creating content related to personal finance and financial literacy.

Paulus has a bachelor's degree in English from the University of St. Thomas, Houston. He enjoys helping people from all walks of life build stronger financial foundations.

Read Full Bio »
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