Retirement Calculator
Calculate how much you need to retire based on your age, savings, and goals. Compare your progress to retirement savings benchmarks from the Federal Reserve. Plan your retirement income with confidence.
How Much Do I Need to Retire?
The amount you need to retire depends on your desired lifestyle, but here are the key guidelines:
- 10x Rule: Save 10-12 times your annual salary by age 67
- 80% Rule: Plan to replace 70-80% of your pre-retirement income
- 4% Rule: You can withdraw 4% of savings annually for 30 years
📋 Retirement Savings by Age (Federal Reserve SCF 2022)
| Age Group | Median | Average | Target (Fidelity) |
|---|---|---|---|
| Under 35 | $18,880 | $49,130 | 1x salary |
| 35-44 | $45,000 | $141,520 | 3x salary |
| 45-54 | $115,000 | $313,220 | 6x salary |
| 55-64 | $185,000 | $537,560 | 8x salary |
| 65-74 | $200,000 | $609,230 | 10x salary |
| 75+ | $130,000 | $462,410 | — |
📚 How Much Do I Need to Retire?
Determining your retirement savings goal depends on your desired lifestyle, expected expenses, and other income sources. While there's no one-size-fits-all answer, financial experts have developed several helpful rules of thumb.
📐 The 10x Rule (Fidelity)
Example: If you earn $80,000/year, aim to have $800,000 saved by age 67.
The 4% Withdrawal Rule
The 4% rule is a widely-used guideline suggesting you can safely withdraw 4% of your retirement savings in the first year, then adjust for inflation each year. This strategy aims to make your money last 30 years.
💡 Quick Calculation
To find how much you need: Annual Expenses × 25 = Retirement Savings Target
- Need $40,000/year? Target: $1,000,000
- Need $60,000/year? Target: $1,500,000
- Need $80,000/year? Target: $2,000,000
The 80% Income Replacement Rule
Most financial planners suggest you'll need 70-80% of your pre-retirement income to maintain your lifestyle. Some expenses decrease (commuting, work clothes) while others increase (healthcare, travel).
🎯 Real-World Adjustments
The 80% rule is a starting point. You may need more if you plan extensive travel or have health concerns. You may need less if your mortgage is paid off or you live in a low-cost area.
📈 Retirement Savings Benchmarks by Age
How do your retirement savings compare to others your age? Here are the latest benchmarks from the Federal Reserve's Survey of Consumer Finances (2022) and Fidelity's recommended savings milestones.
| Age | Median Savings | Average Savings | Fidelity Target |
|---|---|---|---|
| Under 35 | $18,880 | $49,130 | 1x annual salary |
| 35-44 | $45,000 | $141,520 | 3x annual salary |
| 45-54 | $115,000 | $313,220 | 6x annual salary |
| 55-64 | $185,000 | $537,560 | 8x annual salary |
| 65-74 | $200,000 | $609,230 | 10x annual salary |
| 75+ | $130,000 | $462,410 | — |
Source: Federal Reserve Survey of Consumer Finances (2022), Fidelity Investments
⚠️ Average vs. Median
The median (50th percentile) is more representative than the average because high-net-worth individuals skew averages upward. If your savings exceed the median, you're doing better than half of Americans your age.
Fidelity's Savings Milestones
Fidelity recommends saving multiples of your salary at each age milestone:
- Age 30: 1x your annual salary
- Age 40: 3x your annual salary
- Age 50: 6x your annual salary
- Age 60: 8x your annual salary
- Age 67: 10x your annual salary
🏛️ Understanding Social Security Benefits
Social Security provides a foundation of retirement income for most Americans. Understanding when to claim and how much you'll receive is crucial for retirement planning.
Full Retirement Age (FRA)
Your full retirement age determines when you can receive 100% of your Social Security benefits:
- Born 1943-1954: FRA is 66
- Born 1955-1959: FRA is 66 + 2 months per year after 1954
- Born 1960 or later: FRA is 67
💰 Average Social Security Benefits (2024)
- Average retired worker: $1,907/month ($22,884/year)
- Maximum benefit at FRA: $3,822/month
- Maximum benefit at 70: $4,873/month
Claiming Early vs. Late
You can claim Social Security as early as 62 or as late as 70:
- Claim at 62: Benefits reduced by up to 30%
- Claim at FRA (67): Full 100% benefits
- Claim at 70: Benefits increased by 24% (8% per year past FRA)
🎯 Break-Even Analysis
Delaying benefits typically pays off if you live past your early 80s. If you claim at 62 instead of 67, it takes until about age 80 for the person who waited to "break even" in total lifetime benefits.
💼 Retirement Accounts: 401(k), IRA, and More
Understanding the different types of retirement accounts can help you maximize your savings and minimize taxes.
401(k) / 403(b) Plans
Employer-sponsored plans are the primary retirement savings vehicle for many Americans:
- 2025 Contribution Limit: $23,500 ($31,000 if 50+)
- Employer Match: Free money! Always contribute enough to get the full match
- Tax Treatment: Traditional = pre-tax; Roth = after-tax
Individual Retirement Accounts (IRAs)
- 2025 Contribution Limit: $7,000 ($8,000 if 50+)
- Traditional IRA: Tax-deductible contributions, taxed on withdrawal
- Roth IRA: After-tax contributions, tax-free withdrawals in retirement
| Account Type | 2025 Limit | Catch-Up (50+) | Tax Benefit |
|---|---|---|---|
| 401(k) / 403(b) | $23,500 | +$7,500 | Pre-tax or Roth |
| Traditional IRA | $7,000 | +$1,000 | Tax-deductible |
| Roth IRA | $7,000 | +$1,000 | Tax-free growth |
| HSA (Health Savings) | $4,300/$8,550 | +$1,000 | Triple tax advantage |
💡 Maximize Your Savings Order
- Contribute enough to 401(k) to get full employer match
- Max out HSA if eligible (triple tax advantage)
- Max out Roth IRA if income-eligible
- Return to 401(k) and max it out
- Consider taxable brokerage for additional savings
💪 Strategies to Build Your Retirement Savings
Whether you're behind on savings or looking to accelerate your progress, these strategies can help you reach your retirement goals.
Increase Contributions Gradually
Boost your savings rate by 1% each year or with every raise. Going from 10% to 15% over 5 years is easier than a sudden jump.
Use Catch-Up Contributions
If you're 50+, you can contribute an extra $7,500 to your 401(k) and $1,000 to your IRA annually—$8,500 more per year.
Never Leave Free Money
Employer 401(k) matches are free money. A 50% match on 6% is like an instant 50% return on that portion of your contribution.
Consider Downsizing
Home equity can be a source of retirement funding. Downsizing can reduce expenses and add to your investment portfolio.
Delay Social Security
Each year you delay past 62 increases benefits by 6-8%. Waiting until 70 can boost benefits by 77% compared to claiming at 62.
Work a Few More Years
Working 2-3 extra years can dramatically improve your retirement. You save more, delay withdrawals, and may get better healthcare.
⚠️ Common Retirement Planning Mistakes
Starting Too Late
Every decade of delay roughly doubles what you need to save monthly. Starting at 25 vs 35 can mean the difference between saving $500 vs $1,000/month.
Underestimating Healthcare Costs
Fidelity estimates a 65-year-old couple will need $315,000 for healthcare in retirement. Medicare doesn't cover everything.
Ignoring Inflation
At 3% inflation, your purchasing power is cut in half every 24 years. $50,000 today equals only $25,000 in 24 years.
Not Maximizing Employer Match
36% of workers don't contribute enough to get their full employer match. A 50% match is an instant 50% return on that money.
Claiming Social Security Too Early
Claiming at 62 vs 70 can reduce lifetime benefits by hundreds of thousands of dollars for someone who lives to 85+.
Being Too Conservative
Having too much in cash or bonds means your portfolio may not keep pace with inflation, reducing your purchasing power over time.
🔍 People Also Ask About Retirement
How much do I need to retire at 55?
To retire at 55, you'll need more savings than at 67 because you'll have more years in retirement and won't be eligible for Medicare until 65 or Social Security until 62. A general target is 15-18x your annual expenses. Someone spending $60,000/year would need $900,000-$1,080,000 to retire at 55.
What is the 4% rule for retirement?
The 4% rule suggests withdrawing 4% of your retirement savings in the first year, then adjusting for inflation each year. With $1 million, you'd withdraw $40,000 in year one. This strategy was designed to make savings last 30 years with a 95% success rate historically.
Can I retire at 62 with $500,000?
With $500,000 and the 4% rule, you could withdraw $20,000/year from savings. Combined with Social Security (around $1,500-$2,000/month at 62), your total income might be $38,000-$44,000/year. This may work in low-cost areas but could be challenging in expensive cities.
How much Social Security will I get at 67?
Your Social Security benefit depends on your highest 35 years of earnings. The average benefit for retired workers in 2024 is $1,907/month ($22,884/year). The maximum benefit at 67 is $3,822/month for high earners who paid the maximum Social Security tax throughout their career.
Is $1 million enough to retire?
Using the 4% rule, $1 million provides $40,000/year in income. Combined with Social Security averaging $22,000/year, that's $62,000 total. Whether this is enough depends on your location, lifestyle, healthcare needs, and whether your home is paid off.
Should I pay off my mortgage before retirement?
It depends on your interest rate and tax situation. Having no mortgage payment reduces required income in retirement. However, if your mortgage rate is low (3-4%) and your investments earn more, keeping the mortgage might mathematically make sense. Many retirees prefer the security of a paid-off home.
🌍 Retirement Ages Around the World
Retirement ages and systems vary significantly across countries. Here's how the US compares to other developed nations.
| Country | Retirement Age | Key Features |
|---|---|---|
| 🇺🇸 United States | 67 | Social Security + 401(k)/IRA system |
| 🇬🇧 United Kingdom | 66 (rising to 67) | State Pension + workplace pensions |
| 🇨🇦 Canada | 65 | CPP/QPP + OAS + RRSPs |
| 🇦🇺 Australia | 67 | Super Guarantee (mandatory 11.5%) |
| 🇩🇪 Germany | 67 | Pay-as-you-go social insurance |
| 🇫🇷 France | 64 (recently raised) | Social insurance + supplementary |
🌐 US Retirement System Comparison
The US relies heavily on individual savings (401k, IRA) compared to countries like Germany or France with stronger social insurance systems. This means Americans must be more proactive about saving, but also have more flexibility in how they invest and access their funds.
🏥 Healthcare Costs in Retirement
Healthcare is often the largest and most underestimated expense in retirement. Planning for these costs is crucial.
Key Healthcare Statistics
- Average couple's lifetime healthcare costs: $315,000 (Fidelity, 2023)
- Medicare Part B premium (2024): $174.70/month
- Average Medigap policy: $150-$300/month
- Long-term care (nursing home): $9,000-$10,000/month
⚠️ Medicare Doesn't Cover Everything
Medicare starts at 65 but doesn't cover dental, vision, hearing, or long-term care. If you retire before 65, you'll need to fund health insurance until Medicare eligibility—often $500-$1,500/month through the marketplace or COBRA.
HSA: The Ultimate Retirement Account
A Health Savings Account (HSA) offers a triple tax advantage and can be a powerful retirement savings tool:
- Contributions are tax-deductible
- Growth is tax-free
- Withdrawals for medical expenses are tax-free
After age 65, you can withdraw HSA funds for any purpose (not just medical) with only regular income tax—like a traditional IRA.
📊 How Inflation Affects Your Retirement
Inflation is the "silent killer" of retirement plans. Even moderate inflation significantly erodes purchasing power over a 30-year retirement.
Purchasing Power Erosion
At 3% annual inflation, $50,000 today will only buy $24,000 worth of goods in 25 years. Your retirement income needs to keep pace.
Fixed Expenses Help
A paid-off mortgage locks in housing costs. This is a natural inflation hedge since you won't face rising rent.
Invest for Growth
Keeping some stock allocation in retirement helps your portfolio grow and outpace inflation over time.
💡 Social Security COLA
Social Security benefits receive annual Cost-of-Living Adjustments (COLA) based on inflation. In 2024, benefits increased by 3.2%. This helps protect a portion of your retirement income from inflation erosion.
❓ Frequently Asked Questions
A common rule is 10-12 times your annual salary by retirement. Alternatively, use the 4% rule: if you need $50,000/year from savings, you need $1.25 million ($50,000 ÷ 0.04). Factor in Social Security and any pensions to reduce the amount your savings need to cover.
According to the Federal Reserve (2022), median retirement savings are: Under 35: $18,880; 35-44: $45,000; 45-54: $115,000; 55-64: $185,000; 65-74: $200,000. Averages are higher due to high earners skewing the data.
You can claim Social Security as early as age 62, but benefits are reduced by up to 30%. Full retirement age (FRA) is 67 for those born 1960 or later. Delaying until 70 increases benefits by 8% per year past FRA.
The 4% rule suggests withdrawing 4% of your retirement savings in year one, then adjusting for inflation each year. With $1 million, you'd withdraw $40,000 the first year. This strategy historically has a 95% success rate of lasting 30 years.
Traditional: Pay taxes on withdrawal; best if you expect a lower tax rate in retirement. Roth: Pay taxes now; best if you expect higher taxes later or want tax-free income in retirement. Many experts recommend having both for tax diversification.
According to the Bureau of Labor Statistics, households headed by someone 65+ spend an average of $52,141/year ($4,345/month). The largest expenses are housing (34%), transportation (14%), healthcare (13%), and food (13%).
For 2025, the 401(k) contribution limit is $23,500. If you're 50 or older, you can contribute an additional $7,500 in catch-up contributions, for a total of $31,000. Employer matches don't count toward these limits.
If you retire before 65, you'll need to find health insurance. Options include COBRA (up to 18 months), ACA marketplace plans, spouse's employer plan, or private insurance. Budget $500-$1,500/month per person for health insurance until Medicare eligibility.
Financial data verified with official sources from the Federal Reserve and Social Security Administration
This calculator uses data from the Federal Reserve Survey of Consumer Finances (2022), Fidelity Investments, and the Social Security Administration—the most reliable sources for retirement statistics in the United States.
Last updated: February 15, 2026
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