Retirement Calculator 2025: Estimate Your Savings, Income, & Financial Security Needs
Whether you’re 20 years or two years from retirement age, you need to plan how much to save for retirement. By calculating how much your retirement savings will grow, the inflation rate, your life expectancy, and your annual retirement expenses, you can adjust your plan for your savings and investments.
Whether you have a tax-advantaged retirement account like a 401(k) plan, deposits like retirement money market accounts, a traditional IRA, a diversified investment portfolio, pension benefits, passive income streams, mutual funds, insurance company annuities, or other retirement accounts, you can determine the total income and average retirement savings you will need to build per year before you reach retirement age so you get to your desired level of retirement income.
Retirement Savings Calculator Instructions
This calculator has three sections designed to give you an accurate view of where you are now and where you need to be by the time you retire.
Step 1: Input Your Current Retirement Savings
Add the total savings amount you currently hold in all your taxable retirement accounts. Check your online or paper statements to find those amounts.
Step 2: Input How Much You’ll Save
Include how much you’re putting into your accounts monthly or yearly. A ballpark figure is fine.
Step 3: Input Your Federal Tax Rate
Federal tax rates change from year to year depending on many factors. Check directly with the IRS to find your tax bracket lies for the current year.
Step 4: Input Your State Tax Rate
If you live in a state with no income tax, you won’t need to worry about this part and can input 0. If you pay state income tax, check with your state tax board to find your state tax rate.
Step 5: Enter Your Current Retirement Funds
These accounts include 401(k) accounts and IRAs. You can input the amount you’ve saved so far. Check your statement or online accounts to find that amount.
Step 6: Enter How Much You’ll Save
How much will you save? What will be your retirement budget? What will future rates look like? You can plug in a conservative or aggressive number to get an idea of what it will take to get you to your retirement goal.
Step 7: Add the Number of Years You Will Save
How many years until you become a retired person? Whether it’s 30 years or 5 years, plug that number into the calculator.
Step 8: Add Your Average Annual Gain
You can find this number in your account information either online or through the statement you receive in the mail.
Step 9: Click “Calculate”
You will see two numbers. You’ll see the total amount you’ll have at retirement and the inflation-adjusted number. This inflation rate and number shouldn’t be too different if retirement is only a few years away, but if you’re looking decades into the future, there will be a bigger difference between these two numbers.
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How Much Retirement Savings Do You Need?
To see how much your retirement savings will be worth after your set number of years to save, you’ll need to know:
- How much you’ve already saved (in taxable and tax-deferred accounts)
- What yearly or monthly contribution you will make
- Your tax rate
- How many years you will save
- Your expected annual rate of return
When you click “recalculate,” the calculator assumes the amount your current retirement savings accounts will grow, given the parameters you selected. It will also tell you the inflation-adjusted amount you will have in the future to see if you’re saving enough as you’re planning for retirement.
If your results show that you won’t have enough savings during retirement, you may want to use the calculator to explore different assumptions so you can see how various decisions could affect future performance.
Perhaps you could reconsider your budget and find room to save more per month. You may want to think about saving for more years or moving to a state with a lower tax rate. Experiment with the parameters and then notice how the results differ. It may show you a better route to reaching the level of retirement income you decide will be comfortable in retirement.
How Can You Save for Retirement?
Saving more for retirement is a wise financial goal, and there are several strategies you can employ to increase your retirement income.
Start Early
The power of compounding interest can significantly affect your retirement fund growth. The younger your current age when you start saving, the more time your money has to grow. Even small annual contributions can add up over time.
Set Clear Goals
Determine how much monthly income you’ll need in retirement by taking a look at your pre-retirement income. You can use a retirement lifestyle calculator to see how much you’ll need to save to keep up with your lifestyle once you retire.
Contribute to Retirement Accounts
- Employer-Sponsored Plans: If your employer offers a 401(k), 403(b), or a similar retirement financial plan, contribute to it, especially if your employer offers a matching contribution. Contribute enough to take full advantage of the match within your contribution limits as determined by the IRS.
- Individual Retirement Accounts (IRAs): Contribute to a Traditional or Roth IRA. These accounts offer tax advantages, and you can contribute to them even if you don’t have access to an employer-sponsored plan.
Take Advantage of Catch-Up Contributions
If you’re 50 or older, you can make additional catch-up contributions to retirement accounts. For example, in 2025, you can make an extra $7,500 catch-up contribution to a 401(k) if you’re over 50 and $11,250 for ages 60-63.
Invest Wisely
Choose appropriate investments based on past performance, risk tolerance, and time horizon. Diversify your portfolio with mutual funds to spread risk. Consider low-cost index funds and exchange-traded funds (ETFs), as they often have lower fees.
Consult with a financial advisor or retirement planner to help create a personalized retirement savings plan and investment strategy.
Maximize Social Security Benefits and Delay Retirement Age
Even when you reach full retirement age, working a few years longer can allow you to continue saving and let your retirement savings grow while reducing the number of years you’ll need to rely on them.
Delaying receiving your full Social Security benefits can increase your monthly payments. Most retirees try not to rely solely on these benefits. Consider the best strategy for claiming Social Security benefits based on your individual circumstances.
Create Additional Income Streams
Explore opportunities to generate other retirement income, such as part-time work, freelancing, or turning a hobby into a side business for retirement income. This can help supplement your retirement income.
Plan Your Retirement with Confidence
Estimating your retirement savings is the beginning of building a secure financial future. Whether you’re ahead of schedule on retirement goals or need to catch up, investing your savings wisely is crucial to ensure they grow over time. Our retirement calculator has given you a clear snapshot.
To make other investments to maximize your savings, explore our guide “Where to Invest Your Money” for the best options to make your money work for you.
Additionally, if you want to take more control of your investments, check out our guide on the best online brokers to manage your portfolio effectively.
FAQs
Retiring at 62 with $400,000 in your 401(k) depends on your expenses, Social Security benefits, and other income sources. It may be enough for a modest lifestyle if you withdraw 4% annually ($16,000 per year) and have Social Security. However, healthcare costs, inflation, and longevity risks should be considered. You might need additional savings or part-time work to supplement your income. A financial planner can help assess your specific situation.
The 7% rule for retirement suggests withdrawing no more than 7% of your savings annually to ensure your money lasts. However, many experts consider this rate too high due to inflation, market fluctuations, and longevity risks. A more common approach is the 4% rule, which provides a safer withdrawal rate. The 7% rule may work if you have other income sources or a shorter retirement.
If your estimate shows a shortfall in retirement savings, consider increasing your contributions, diversifying your investments, or delaying your retirement age. Consider increasing your contributions, exploring employer-matching opportunities, or delaying retirement and Social Security benefit payments. Use our calculator to see how these changes can boost your retirement outlook.
The $1,000-a-month rule says you need about $240,000–$300,000 in savings to generate $1,000 per month in retirement, based on the 4% withdrawal rule. Multiply that by however much you want per month. It’s a quick way to estimate retirement needs. Experts recommend saving 10% to 15% of your pre-tax income for retirement.
Retiring at 60 with $500,000 depends on your expenses, lifestyle, and other income sources like Social Security or pensions. Using the 4% rule, you’d withdraw $20,000 annually, which may not be enough for all expenses, especially healthcare before Medicare at 65. It could work if you minimize costs, have additional income, or invest wisely. A financial planner can help assess your situation.
