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Retirement Calculator — Nest Egg & Safe Withdrawal
Find out when you can retire and how much you need to save to replace your income.
Growth & Investment Strategy
Retirement Target (4% Rule)
Transparent mathematical methodology explained in plain English.
Required Nest Egg = Desired Annual Retirement Spending / 0.04 The 4% Trinity Study rule suggests that an equity/bond portfolio will sustainably support a 4% initial withdrawal rate adjusted for inflation over a 30-year retirement.
Variables Explained:
- Spending: Desired annual living expenses in retirement.
- 0.04: Safe withdrawal benchmark rate (equal to 25× annual expenses).
Retirement Planning for $60,000 Annual Spending
Calculating target nest egg and accumulation path.
- Required target nest egg: $60,000 ÷ 0.04 = $1,500,000.
- Years to invest: 65 - 35 = 30 years.
- Required monthly savings at 7% return: ~$1,230/month.
Frequently Asked Questions: Retirement Calculator
Click any question below to expand quick answers, formulas, and expert tips.
How much money do you need to retire comfortably in 2026?
A common rule of thumb is to save 25 times your anticipated annual retirement expenses (or aim to replace 70% to 80% of your pre-retirement income). For example, if you plan to spend $60,000 per year from investments, your target nest egg is $1.5 million.
What is the 4% rule for safe retirement withdrawals?
Established by the landmark Trinity Study, the 4% rule states that an investor can withdraw 4% of their total balanced stock/bond portfolio during the first year of retirement, adjust that dollar amount for inflation each year, and have a 95%+ probability of funds lasting 30 years.
What percentage of my current income should I save for retirement?
Financial planners recommend saving 15% of your gross annual salary (including employer 401(k) matches). If you start saving in your 20s, 15% is typically sufficient. If starting in your 30s or 40s, aim for 20% to 25%.
How much will Social Security cover in retirement?
On average, Social Security replaces approximately 35% to 40% of an average worker’s pre-retirement earnings. The remaining 60% to 65% must come from personal savings, pensions, 401(k) plans, and IRAs.
What is the difference between a Traditional IRA, Roth IRA, and 401(k)?
A 401(k) is an employer-sponsored plan with high contribution limits ($23,000+ in 2026) and matching. Traditional accounts offer pre-tax contributions and tax-deferred growth (taxed at withdrawal). Roth accounts use post-tax dollars and provide 100% tax-free withdrawals in retirement.
At what age should you start collecting Social Security benefits?
You can claim Social Security as early as age 62 (with a permanent ~30% reduction), at Full Retirement Age (FRA, age 67 for those born 1960 or later), or delay until age 70 for an 8% per year delayed retirement credit.
How do healthcare and Medicare costs factor into retirement budgets?
Fidelity estimates the average retired couple age 65 will need approximately $315,000 to $330,000 out-of-pocket for medical expenses throughout retirement (excluding long-term nursing care), making Health Savings Accounts (HSAs) a powerful supplemental vehicle.
How can you retire early using the FIRE (Financial Independence, Retire Early) movement?
The FIRE movement emphasizes maintaining a high savings rate (50%+ of net income), investing in broad low-cost index funds, minimizing lifestyle inflation, and accumulating 25 to 30 times annual living expenses to retire in one’s 30s, 40s, or 50s.