About this calculator
Retirement savings fail quietly. The gap is not dramatic in any single year, but compound growth means the decade you delay costs you a large multiple of what you put in during it. A projection makes that gap concrete.
How it works
The calculator projects your balance monthly, adding your contributions and the employer match at the end of each month, then compounds at your expected return. The 4% withdrawal figure gives a rough monthly income, based on the common guideline of withdrawing 4% of the portfolio per year in retirement.
Frequently asked questions
How much should I save for retirement?
A common guideline is 15 times your annual expenses, not your salary, at retirement. A 40% expense reduction in retirement is often reasonable, so the target varies with your own spending.
How much does an employer match do for me?
A 50% match is a strong benefit and effectively raises your return. Contribute at least enough to capture the full match, because that is an immediate 50% return on each dollar you put in.
Is 7% a reasonable return assumption?
It is a common long-run planning figure for a balanced portfolio. Using a lower number, such as 5 or 6%, produces more conservative projections that are less likely to disappoint.
Should I choose a 401k or an IRA?
Contribute to your 401k at least up to the full match first, because of the immediate match. Beyond that, compare fees and access. IRAs offer more investment choice and separate contribution limits.
What happens if I need the money early?
Contributions to traditional 401k and IRA plans typically face a 10% penalty before age 59.5. Roth IRAs have no such penalty, since contributions are made after tax.
Does the 4% withdrawal rule still hold?
It is a reasonable starting point, and some retirees use a lower rate for a longer horizon or a higher one for a shorter one. Higher stock allocations historically supported 4% over 30-year periods.