Retirement Calculator

How Do You Want to Live in Retirement?

Conventional wisdom says you need less money in retirement than in your working years. But if you're not working, you probably want to get out and do stuff, so it's safer to assume you'll spend at least as much as you do now.

• Rich Enough: aim for no less than 60% of what you currently make.
• Pretty Rich: aim for 80% of your current income for stress-free flexibility.
• Super Rich: aim for 100% so you can live large, cover health-care costs, and tackle the bucket list.

What Return Should You Expect?

Assume too low a return and you're forced to save a lot more now. Assume too high a return and you might come up short later. A sweet spot: no more than 7% to 8%. Even a 1% difference compounds dramatically over thirty or forty years.

What About Inflation?

Plan around a roughly 3% inflation rate. What matters is what your money will actually buy in retirement, a million dollars today will likely buy about half as much in twenty-five years.

When Will You Retire, and How Long Will You Live?

The average retirement age is sixty-seven, but play around with the number to see what's feasible. For life expectancy, don't use anything less than ninety-five, one hundred is better. We're living longer and longer, and running out of money is not an option.

Counting on Social Security?

The Social Security Administration sends an estimate of what you can expect based on your earnings. You can factor it in, but consider using a lower number, or skipping it altogether, so your plan doesn't depend on it.