Plan Your Retirement Savings, Income & Withdrawals
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A common retirement planning rule is that you should save 25 times your annual retirement expenses. This is based on the 4% rule, which suggests you can safely withdraw 4% of your portfolio each year without running out of money over a 30-year retirement.
If you plan to spend $50,000 per year in retirement, you would need a nest egg of $1.25 million ($50,000 ÷ 0.04 = $1,250,000). This accounts for inflation, market returns, and provides a high probability of not running out of money.
The 4% rule suggests you can withdraw 4% of your retirement savings annually and likely never run out of money over a 30-year retirement. This is a safe withdrawal rate based on historical market returns and inflation.
A common rule is 25 times your annual expenses (based on the 4% rule). If you spend $50,000/year, you need $1.25 million. Our calculator helps determine your specific number based on your situation.
The traditional safe withdrawal rate is 3-4% of your portfolio annually. This accounts for inflation, market returns, and your retirement duration. Our calculator defaults to 4% but you can adjust based on your situation.
Inflation reduces purchasing power over time. At 3% annual inflation, your $100,000 in retirement will have the buying power of about $74,000 in 10 years. Our calculator adjusts your expenses for inflation automatically.
The earlier you start, the better. Time and compound growth are your biggest advantages. Starting at 25 versus 35 can mean hundreds of thousands more in retirement savings due to decades of compounding.
A common guideline is to save 10-15% of your gross income. However, this depends on your current age, retirement age, expected returns, and retirement lifestyle. Our calculator helps determine the right amount for your goals.
Taxes reduce your retirement income. At a 15% effective tax rate, $100,000 in withdrawals becomes $85,000 to spend. Tax-advantaged accounts like Roth IRAs and 401(k)s can help minimize this impact.