Retirement Calculator

Frequently asked questions

Is the 4% rule still valid?

It’s a heuristic, not a law. Most modern research suggests 3.5-4% for 30-year retirements. A portfolio-and-spending check with a fee-only advisor is wise as retirement approaches.

How much do I actually need to retire?

About 25× your annual expenses is a common target (the 4% rule in reverse). For $50k/year spending, aim for $1.25M. For $100k/year, $2.5M.

How does Social Security factor into retirement planning?

Average SS benefit (2024): $1,907/month at full retirement age (67 for those born 1960+), $22,884/year. Maximum benefit at FRA: $3,822/month, $45,864/year. Reduce required nest egg accordingly: if SS provides $25K/year, you need 25× of (annual spending - $25K) = $625K-$1.5M instead of $1.25M-$2.5M for $50K-100K/year spending. SS is roughly 40% of pre-retirement income for average earners, less for high earners. Don't count on SS replacing more than 30-40% of pre-retirement income unless you're a low earner. Check your Social Security Statement annually at SSA.gov.

When should I claim Social Security?

Earliest: 62 (reduced 25-30%). Full Retirement Age: 67 for those born 1960+ (full benefit). Latest: 70 (8% per year increase from FRA, so 24% boost over FRA amount). Math: claiming at 70 vs. 62 means $1.5K/month → $2.7K/month — almost double. Break-even on delaying: ~age 80. Claim early if: you have health concerns or shortened life expectancy, you need the income to avoid drawing down portfolio in early retirement, or you're not married. Delay if: you're healthy, you have other income sources, you want the higher survivor benefit for spouse.

How should I draw down my retirement portfolio?

Conventional wisdom: tax-deferred (401(k), traditional IRA) first, then taxable brokerage, then Roth (preserves tax-free growth longest). Modern thinking: spread withdrawals across all account types each year to manage tax brackets. RMDs (required minimum distributions) start at 73 for traditional accounts; failing to take RMDs costs a 25% penalty. Tax-loss harvesting in taxable accounts. Consider Roth conversions in low-income early-retirement years (between when you stop working and when SS / RMDs start). A fee-only retirement planner is worth $2K-5K of one-time consultation as you approach retirement.

Should I retire early (FIRE movement)?

FIRE = Financial Independence Retire Early. Two flavors: lean FIRE (live on $30-40K/year, retire on $750K-$1M), regular FIRE (retire on $1.5-2.5M for $60-100K/year). Pros: time freedom, escape from job stress, more years to pursue passions. Cons: longer retirement = sequence-of-returns risk, healthcare gap before Medicare at 65 (ACA marketplace runs $400-1500/month for early retirees), and many early retirees struggle with identity / purpose post-work. FIRE works mathematically when savings rate is 50%+ of income; less feasible at 20-25% savings rates.

Is this retirement calculator accurate for my situation?

Accuracy depends on what you compare against. The math itself (compound interest with monthly contributions) is exact — same as Excel's FV(), same as Vanguard / Fidelity / Personal Capital projection engines. What varies: (1) return assumption (we let you pick; tools that bake in 7-10% can be optimistic). (2) Whether inflation is modeled (use real returns ~7% to project in today's dollars). (3) Whether withdrawal-phase risk is modeled (we don't run Monte Carlo simulations — for that, use Vanguard's Retirement Income Calculator or Personal Capital's full planner). For an accumulation-phase 'will I have enough?' answer, this calculator is within 5-10% of any professional tool given the same inputs. For decumulation modeling near retirement, supplement with Monte Carlo.

How do I calculate retirement savings need manually?

Quick method (4% rule reverse): annual_expenses × 25 = nest egg target. $50K/year × 25 = $1.25M. Adjust for: Social Security (subtract $20-30K/year × 25 = $500-750K from nest egg), pension (same logic), early retirement (use 30× instead of 25×), high health-insurance pre-Medicare (add $5-15K/year × years until 65). Detailed method: (1) Project Year-1 retirement spending in today's dollars. (2) Subtract guaranteed income (SS, pension). (3) Multiply by 25 (or 30 for early retirement). (4) Inflate to retirement year using 3% × years to retirement. (5) That's your nominal target. (6) Run a savings calculator backward: how much do I need to save monthly to hit that at my expected return rate?

What's the best age to retire?

Mathematically: the age your portfolio supports your spending plan with margin (typically 25-30× annual expenses minus Social Security). Common targets: 60 (early retirement, requires lean spending or high savings rate), 65 (matches Medicare eligibility — eliminates the ACA gap), 67 (Full Retirement Age for SS, born 1960+), 70 (maximum SS benefit, 8% delayed retirement credit per year past FRA). Health and family history matter: if you expect a long life (parents lived 90+), delay; if shortened life expectancy, claim SS earlier. Non-financial factors: many retirees report identity / purpose challenges in early retirement; phasing out (consulting, part-time, or volunteer work) often produces better life-satisfaction than abrupt full stop. There's no universal 'best' age — there's the age that fits your money AND your meaning.