Retirement Savings Calculator

Retirement projections are estimates based on assumptions about future investment returns, inflation, and contribution rates. Actual results will vary due to market volatility, changes in income, and life events. This calculator uses a fixed annual return rate, but real investments fluctuate. For more accurate planning, consider Monte Carlo simulations and consult a financial advisor.

Historical stock market returns average about 10% annually, but this includes significant volatility. A more conservative approach for retirement planning uses 6-8% annual returns, accounting for a mix of stocks and bonds. If you're early in your career, you might use 8-10%, but as you near retirement, shift to 5-7% to reflect a more conservative portfolio.

Financial experts typically recommend saving 10-15% of your income for retirement, including employer matches. The exact amount depends on your retirement goals, current age, and expected Social Security benefits. Use this calculator to experiment with different savings rates and see how they affect your projected nest egg.

Yes, employer matching contributions are essentially free money and should be included in your retirement savings calculations. If your employer matches 50% of your 401(k) contributions up to 6% of your salary, that's an additional 3% of your salary going toward retirement. This calculator includes a field for employer matching to account for this benefit.

Inflation reduces the purchasing power of money over time. While this calculator focuses on nominal (not inflation-adjusted) projections, it's important to remember that the dollars you accumulate will buy less in the future than they do today. For planning purposes, consider that you may need 70-90% of your pre-retirement income to maintain your standard of living, but that income should be adjusted for inflation.