Retirement Calculator

The 4% rule suggests withdrawing 4% of your retirement savings in the first year, then adjusting for inflation each year. This approach has historically provided income for 30+ years without depleting the portfolio.

A common guideline is to save 10-15% of your gross income for retirement. The exact amount depends on your desired lifestyle, expected Social Security benefits, and when you plan to retire.

Inflation reduces purchasing power over time. At 3% inflation, $4,000 today will only buy about $2,200 worth of goods in 20 years. Your retirement plan should account for increasing costs throughout retirement.

A 401(k) is employer-sponsored with pre-tax contributions and higher limits ($23,000 in 2024). A Traditional IRA also uses pre-tax money but has lower limits ($7,000). A Roth IRA uses after-tax contributions but withdrawals are tax-free in retirement. Each has different income and age requirements.

A target-date fund automatically adjusts its asset allocation based on your expected retirement year. It starts with more stocks for growth and gradually shifts to bonds for stability as you approach retirement. It's a simple, hands-off retirement investment option.

You can start at 62 (reduced benefits), full retirement age (66-67), or delay until 70 (increased benefits of about 8% per year of delay). Delaying generally makes sense if you're healthy and can afford to wait, as lifetime benefits are often higher.

Increase contributions aggressively, take advantage of catch-up contributions (extra $7,500/year for 401k if 50+), reduce expenses, consider working a few years longer, delay Social Security, and ensure your portfolio allocation is appropriate for your timeline.

FIRE (Financial Independence, Retire Early) is a lifestyle movement focused on extreme saving (50-70% of income) and investing to achieve financial independence decades before traditional retirement age. The goal is to have 25-30 times your annual expenses saved.