Retirement Calculator
Project your retirement savings, the nest egg needed for an inflation-adjusted income, the monthly income your savings can support and any shortfall.
Results
- Savings grow with monthly compounding until retirement. In retirement the balance earns the post-retirement return and pays an income that rises with inflation (paid at the start of each month) until the 'plan until' age.
What is Retirement Calculator?
Estimates how much you will have at retirement, how much you need to pay yourself a chosen monthly income (rising with inflation) until a planning age, the income your projected savings can support, and the extra monthly saving needed to close any gap.
How to use Retirement Calculator
- Enter your Current age, Retirement age and the age to Plan until.
- Enter Current savings and Monthly contribution.
- Enter the expected returns before and after retirement and the Inflation rate.
- Enter the Desired retirement income per month in today's money and read the results.
Example
Age 30, retire at 65, plan to 90, 50,000 saved, 500/month, 6% before / 4% after, 2.5% inflation, 3,000/month desired
Savings at retirement 1,118,532.72; supported income 1,872.46 per month in today's money; extra saving needed 472.76 per month
When to use Retirement Calculator
Use it for a first, transparent estimate of whether your plan is on track. It ignores taxes, state pensions, one-off expenses and variable returns, so check important decisions with a financial adviser.
How Retirement Calculator works
Before retirement savings grow with monthly compounding: FV = S(1 + r)^n + C((1 + r)^n − 1) ÷ r. In retirement the desired income is first inflated to the retirement date, then the nest egg needed is the present value of monthly withdrawals that keep rising with inflation, paid at the start of each month, discounted at the real monthly rate ((1 + post-return) ÷ (1 + inflation))^(1/12) − 1. The sustainable income reverses that calculation, and the extra monthly saving divides the shortfall by the annuity factor of the remaining working months.
Common Use Cases
- Checking whether current saving is enough
- Seeing the effect of retiring 5 years later
- Estimating a realistic retirement income
- Finding how much more to save each month
FAQs
Why is the needed amount so large?
The income must last many years and keep up with inflation. 3,000 per month in today's money is about 7,100 per month after 35 years of 2.5% inflation.
Are pensions or social security included?
No. Subtract expected pension income from the desired income before entering it.
What does "plan until age" mean?
The age until which the savings must last. Choosing a later age is more cautious.