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Plan for your retirement with our savings calculator. Project your investment growth and see if you are on track to meet your retirement goals.
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Plan your financial independence with compound growth projections and safe withdrawal strategies
Retirement planning is the process of determining how much money you will need to live comfortably once you stop working, then building a strategy to accumulate that wealth over your career. Because most workers can no longer rely solely on employer-funded pensions, the responsibility for retirement security has shifted to individuals through vehicles like 401(k) plans, IRAs, and personal investment accounts.
The most powerful force in retirement planning is compound growth: your investment returns earn their own returns, creating an exponential snowball effect over decades. A dollar invested at 25 has roughly 30 years more to compound than a dollar invested at 55 — which is why starting early matters far more than contributing large amounts later.
This calculator uses the future value formula with monthly contributions to project how your current savings and ongoing contributions will grow to a target retirement age. Input your current savings balance, monthly contribution, expected annual return, and the ages at which you are saving and planning to retire.
Once you know your projected balance, you can estimate how long it will last using the 4% safe withdrawal rate — meaning you withdraw 4% of your portfolio in year one and adjust for inflation annually. Research suggests this rate has historically supported 30-year retirements across a wide range of market conditions.
Derived from the Trinity Study (1998). Withdraw 4% of the portfolio value in year one, then adjust for inflation annually. Historically sustains a 30-year retirement with high probability.
A simple longevity estimate. Divide your projected savings by your expected annual spending in retirement. For example, $1,000,000 ÷ $50,000/year = 20 years of coverage.
| Feature | 401(k) | Traditional IRA | Roth IRA | Pension |
|---|---|---|---|---|
| 2024 Contribution Limit | $23,000 (+$7,500 catch-up 50+) | $7,000 (+$1,000 catch-up 50+) | $7,000 (+$1,000 catch-up 50+) | Defined by employer |
| Tax on Contributions | Pre-tax (Traditional) or After-tax (Roth 401k) | Pre-tax (deductible) | After-tax (nondeductible) | N/A — employer funds |
| Tax on Withdrawals | Ordinary income tax | Ordinary income tax | Tax-free (qualified) | Ordinary income tax |
| Employer Match | Yes — common up to 3–6% | No | No | Defined benefit formula |
| RMDs | Yes — starting age 73 | Yes — starting age 73 | No RMDs during owner's life | Yes — lifetime payments |
| Early Withdrawal Penalty | 10% before age 59½ (exceptions apply) | 10% before age 59½ | 10% on earnings before 59½ | Reduced or forfeited benefit |
President Franklin D. Roosevelt signs the Social Security Act, creating the first federal old-age insurance program in the United States. Initial benefit payments began in 1940.
ERISA establishes the Individual Retirement Account (IRA) and creates federal standards protecting pension plan participants, including vesting rules and fiduciary responsibilities.
Section 401(k) of the Internal Revenue Code is enacted, allowing employees to make pre-tax contributions. Benefits consultant Ted Benna designs the first 401(k) plan in 1980.
Researchers at Trinity University publish "Retirement Savings: Choosing a Withdrawal Rate That Is Sustainable," establishing the landmark 4% safe withdrawal rate that still guides retirement planning today.
The Pension Protection Act reforms defined-benefit pension funding rules and makes permanent provisions of the 2001 tax act, boosting retirement contribution limits and expanding automatic enrollment in 401(k) plans.
The SECURE 2.0 Act raises the required minimum distribution (RMD) age from 72 to 73, expands catch-up contributions, creates emergency savings accounts within 401(k) plans, and introduces student loan matching provisions.
Original research establishing the 4% safe withdrawal rate. Analyzed stock/bond portfolios across 30-year rolling periods from 1926–1995. Found that a 4% withdrawal rate succeeded in nearly all market scenarios, becoming the foundation of modern retirement planning.
Read the study →Vanguard's annual analysis of 5 million 401(k) participants reveals that 68% of American workers are not on track for a comfortable retirement. Median 401(k) balance was $87,571 in 2022, but averages are skewed by high earners. Automatic enrollment significantly improves participation rates.
Read the report →The National Retirement Risk Index (NRRI) from Boston College finds that approximately 50% of working-age US households are at risk of not maintaining their pre-retirement standard of living. The index incorporates Social Security, housing equity, and financial assets.
Visit CRR →I need $1 million to retire comfortably
The right number depends on your spending. At 4% withdrawal: $500k → $20,000/year; $1M → $40,000/year; $2M → $80,000/year. Calculate YOUR number based on your actual expected expenses.
Social Security will cover my retirement
Social Security replaces only ~40% of average pre-retirement income. The average monthly benefit in 2024 is $1,907 (~$22,884/year) — below most Americans' living expenses. It supplements, not replaces, savings.
I can catch up later by saving more
$500/month invested from age 25 at 7% grows to ~$1.37M by 65. Starting at 35 produces ~$680K — a $690,000 difference. Time in the market is irreplaceable because of compound interest.
A high return rate guarantees retirement success
Sequence of returns risk means retiring into a down market (e.g., 2000, 2008) can devastate your portfolio regardless of your long-term average return. Asset allocation and withdrawal strategy matter as much as return rate.
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