US Retirement Calculator

How the retirement calculator works

Planning for retirement in the US involves coordinating multiple moving parts. Our calculator acts as a comprehensive simulation engine for your financial future. It models the two distinct phases of your financial life: the Accumulation Phase (your working years) and the Distribution Phase (your retirement years).

During accumulation, the tool applies compound interest to your current balances while adding your ongoing 401(k) and IRA contributions. It explicitly factors in your employer match using standard industry formulas, ensuring you don't underestimate "free money". When you hit your retirement age, the tool pivots. It begins withdrawing money from your portfolio to meet your income target, supplementing your withdrawals with your stated Social Security and pension benefits, while applying inflation to maintain your purchasing power.

How much money may be needed for retirement

A widely cited benchmark is targeting an income replacement ratio of 70% to 80% of your pre-retirement salary. If you earn $100,000 immediately before retiring, you might need $80,000 annually to maintain your lifestyle, as you no longer pay payroll taxes or save for retirement.

To generate that $80,000, you will combine Social Security (e.g., $30,000) and portfolio withdrawals ($50,000). Using the 4% rule, generating $50,000 annually requires a portfolio of approximately $1.25 million.

Traditional versus Roth contributions

While this calculator models total balance growth, it is crucial to understand tax treatment. Traditional 401(k) and IRA contributions are made pre-tax, meaning your withdrawals in retirement will be subject to ordinary income tax. Roth contributions are made after-tax; the balance grows tax-free, and withdrawals are tax-free. If you expect to be in a higher tax bracket in retirement, Roth accounts are highly advantageous.

Social Security and retirement

Social Security forms the bedrock of most American retirements. You can claim benefits at age 62, but they will be permanently reduced by up to 30%. Waiting until your Full Retirement Age (FRA, typically 67) grants 100% of your earned benefit. Delaying to age 70 increases your benefit by 8% per year. The calculator assumes the dollar value you input is the value at your designated claiming age, and inflates it from that point forward.

Who this calculator is for

This tool is for US workers planning a self-funded retirement — anyone with a 401(k), 403(b), IRA, or taxable investments who wants to know whether they're on track. It suits mid-career savers stress-testing their contribution rate, near-retirees checking a withdrawal strategy, and early-career workers seeing how starting now beats starting later.

It models Defined Contribution accounts and Social Security. It does not value a traditional pension (Defined Benefit) beyond the simple monthly figure you can enter, and it does not replace a full financial plan from a regulated adviser.

What you need before you start

• Your current age and the age you plan to retire (start drawing the portfolio).
• Your current retirement balances — 401(k), IRA, and any other invested savings.
• Your annual contribution and any employer match (often a 100% match on your first 3%, for example).
• An expected annual return before and after retirement (commonly 6–8% pre-retirement, 4–5% post-retirement for a more conservative mix).
• Your estimated annual spending in retirement and your expected Social Security benefit — get an official estimate at my Social Security.

What each input means

• Current age / Retirement age — set the accumulation window; the gap between them is how long contributions compound.
• Current balances — the total already invested across all retirement accounts today.
• Annual contribution — what you add each year. The calculator enforces the 2026 IRS employee limit ($23,500 for 401(k), with catch-ups at 50+).
• Employer match — your company's contribution, modelled per the formula you select. Always contribute at least enough to capture the full match.
• Pre- and post-retirement returns — separate rates so you can model a more conservative portfolio after you stop working.
• Inflation — escalates your retirement spending target each year to preserve purchasing power.
• Social Security / pension — monthly income from guaranteed sources, stated in today's dollars and inflated from your claiming age.

How to interpret your results

The projection runs in two phases. During accumulation, your balance grows from contributions, employer match, and investment returns, minus fees. At retirement it switches to distribution: it calculates your income target, subtracts Social Security and any pension, and withdraws the shortfall from your portfolio to test how long the money lasts.

The key outputs are your projected balance at retirement, the annual income that balance can support, and a depletion age — the point at which the portfolio would run out under your assumptions. If the depletion age falls short of your life expectancy, you have three levers: save more, work longer, or spend less in retirement. A balance that lasts beyond age 95 under your assumptions is generally considered robust.

Worked example

A 35-year-old earning $85,000, planning to retire at 67, with $40,000 already saved, contributing 10% with a 3% employer match, expecting 7% pre-retirement and 4% post-retirement returns, 3% inflation, $60,000 annual retirement spending, and $30,000/year Social Security claimed at 67:

• Over 32 years, contributions plus match and 7% growth compound the $40,000 starting balance toward a projected pot in the low seven figures.
• In retirement, the $60,000 target (inflated annually) is partly met by $30,000 of Social Security, so the portfolio must cover the gap.
• The depletion check shows whether the pot survives past age 95 — if it does, the plan is on track; if not, increasing the contribution rate by 2–3% typically closes it.

Figures are illustrative; actual outcomes depend on market returns, inflation, and the assumptions you enter.

Common mistakes to avoid

• Leaving employer match on the table. Not contributing up to the match is turning down guaranteed, immediate 100% returns.
• Using an overly optimistic return. Assuming 10% every year ignores downturns and fees. 6–7% pre-retirement is a prudent long-run assumption.
• Forgetting inflation. $60,000 of spending in 30 years is far more in nominal dollars — the calculator handles this, but only if you enter a realistic inflation rate.
• Ignoring fees. A 1% annual fee over 30 years can consume six figures of potential growth. Enter your net expected return after fund expenses.
• Underestimating longevity. Planning to age 85 when many retirees live past 90 risks running out of money. Stress-test to age 95.

Sensible next steps

• Pull your official Social Security estimate from my Social Security and enter the figure at your planned claiming age.
• If the depletion age is too early, increase your 401(k) contribution by 1–2% and re-run — small early increases have outsized effects.
• Check whether your plan offers a Roth option; mixing traditional and Roth gives you tax flexibility in retirement.
• For a personalised plan, consult a fee-only fiduciary adviser — find one through the National Association of Personal Financial Advisors.