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How to Use Our Retirement Savings Calculator

3 min read

How to Use Our Retirement Savings Calculator

Planning for retirement does not have to be complicated. Our Retirement Savings Calculator helps you answer the most important question: am I saving enough?

Setting Up Your Inputs

  • Current Age -- Your age today. The earlier you start, the more time compound growth has to work.
  • Retirement Age -- When you plan to stop working. The standard is 65, but your number may be different.
  • Current Savings -- What you already have in retirement accounts (401k, IRA, etc.).
  • Monthly Contribution -- How much you are putting away each month for retirement.
  • Expected Return -- Your anticipated annual investment return. Use 7% for a stock-heavy portfolio or 5% for a more conservative mix.

Understanding the Output

The calculator tells you:

Projected Retirement Savings -- Your estimated nest egg at your target retirement age. This is the number you will live on.

Monthly Retirement Income -- Based on the 4% safe withdrawal rule, this is approximately how much you could spend each month in retirement without running out of money.

Savings Gap -- If you have a target retirement income in mind, the calculator can show you whether your current savings rate gets you there or if you need to increase contributions.

Making It Actionable

Start with your target. Most financial advisors suggest replacing 70-80% of your pre-retirement income. Multiply that annual amount by 25 to get your target nest egg.

Adjust until the numbers work. If your projected savings falls short, try increasing your monthly contribution, adjusting your retirement age by a year or two, or both.

Revisit annually. Run the calculator at least once a year with updated numbers to make sure you are still on track.

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