💰 Retirement Calculator

A retirement calculator is a financial planning tool that helps you estimate how much money you'll need for retirement and whether your current savings plan will meet your goals. It takes into account factors like your current age, income, savings rate, expected returns, and retirement timeline.

Financial experts typically recommend saving 10-15% of your pre-tax income for retirement. However, the exact amount depends on your retirement goals, current age, and expected lifestyle. Starting early allows compound interest to work in your favor.

The 4% rule suggests that you can safely withdraw 4% of your retirement savings annually without running out of money over a 30-year retirement. This rule helps determine how much you need to save - multiply your desired annual retirement income by 25.

Yes, Social Security benefits should be part of your retirement income planning. However, don't rely solely on Social Security as it typically replaces only about 40% of pre-retirement income for average earners. Use the Social Security Administration's website to estimate your benefits.

Inflation reduces purchasing power over time. What costs $1,000 today might cost $1,800 in 20 years with 3% annual inflation. Retirement calculators account for inflation to show the real value of your future savings and help you plan accordingly.

The earlier, the better. Starting in your 20s gives you decades for compound growth. Even small amounts saved early can grow significantly. If you're starting later, you may need to save a higher percentage of your income to catch up.

If you're behind, consider increasing your savings rate, working a few extra years, reducing expected retirement expenses, or exploring catch-up contributions if you're over 50. Many employer plans allow additional contributions for older workers.