How This Calculator Works

Projected savings uses the future value formula for compound growth with regular contributions. The inflation-adjusted value converts that figure to today's purchasing power. The savings target is calculated from your desired monthly income using present value of an annuity.

Key Retirement Planning Rules of Thumb

• The 4% Rule: You can withdraw 4% of your portfolio per year and not run out of money for 30 years (based on historical market data). This implies needing 25× your annual expenses saved.
• Save 15% of income: Including employer match, saving 15% of gross income from age 25 historically leads to a comfortable retirement at 65.
• Social Security: Average SS benefit (~$1,800/month in 2025) reduces how much your portfolio needs to cover — factor this in when setting your target income.