Question 1

How much should I save for retirement?

Accepted Answer

The amount you need depends on your desired lifestyle in retirement. A common rule of thumb is the "4% rule": multiply your desired annual income by 25 to get the amount needed. For example, to earn $40,000 per year from investments, you'd need approximately $1,000,000 saved. This calculator lets you set a desired monthly income and works backward to show if you're on track.

Question 2

What is the 4% rule?

Accepted Answer

The 4% rule is a widely used retirement principle: if you withdraw 4% of your retirement savings in your first year of retirement and then adjust that amount for inflation each year, your portfolio is likely to last 30+ years even in volatile markets. This calculator uses the 4% rule to estimate your monthly income from your projected retirement balance. It's conservative and provides a safety margin.

Question 3

How does inflation affect my retirement?

Accepted Answer

Inflation erodes the purchasing power of your savings over time. $1 million today may only buy what $500,000 buys in 20 years if inflation runs at 3.5% p.a. This calculator shows both the nominal value (raw dollars) and the real, inflation-adjusted value of your projected savings. Always compare your desired retirement income to the inflation-adjusted monthly income figure.

Question 4

What does "On Track / Needs Attention / At Risk" mean?

Accepted Answer

This calculator compares your projected monthly income (using the 4% rule) to your desired monthly income. "On Track" means you'll have enough or more. "Needs Attention" means your projected income falls short by less than 20%. "At Risk" means you'll fall short by more than 20%. If you're not on track, the "What if" slider shows how much higher monthly contributions would move you toward your goal.

Question 5

How long will my retirement savings last?

Accepted Answer

This calculator shows how many years your projected retirement savings will last if you withdraw your desired monthly income continuously, accounting for investment returns. For example, if your balance at retirement is $500,000 and you withdraw $2,000/month, it might last 30 years depending on your return rate. If it lasts longer than your expected retirement period (typically 25–40 years), you're safe. If shorter, you may need to save more, delay retirement, or lower your desired income.

Retirement Calculator

How it works

How it works

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