About the Retirement Readiness Calculator
The Retirement Readiness Calculator projects your nest egg forward from current savings, contributions, and expected return; compares the result against your stated income target; applies the 4% sustainable-withdrawal rule (Trinity Study, 1994; updated by Bengen 2023 to ~4.7%); layers in Social Security and any pensions; and returns the income gap plus the monthly contribution increase needed to close it. A Coast FIRE number shows when contributions can stop entirely.
It is built for mid-career professionals checking whether the current trajectory hits target retirement age, FIRE-curious users testing aggressive savings rates, late-career savers running catch-up scenarios, retirees stress-testing whether to delay Social Security to 70, and anyone wanting the income-gap diagnosis rather than just a “you need $1.5M” one-liner.
All projections run locally in your browser. Savings balances, contribution amounts, income targets, and the prioritized action plan are never transmitted off your device. The page makes no network call after first load. Nothing is logged. Retirement plan data is among the most identifying single-household financial inputs; this calculator treats it as such.
Projections assume constant returns; real markets do not deliver them. Sequence-of-returns risk — a bear market in years 1–5 of retirement — can derail an otherwise-safe plan that looks fine under a steady-7% assumption. Use a 6% real-return assumption rather than 9% nominal for safety, model a 70–100% Social Security haircut for conservatism, and pair the headline with a Monte Carlo run (cFIREsim, FICalc) before treating any plan as “set.”
See your projected nest egg at different retirement ages and monthly contribution amounts. Green = meets goal, Yellow = close, Red = falls short.
The amount you need saved today to stop contributing entirely and still hit your retirement goal through compound growth alone.
See how each income source stacks up against your desired monthly retirement income.
How to Use the Retirement Readiness Calculator
Start by entering your current retirement savings — the total you have today across all retirement accounts including 401(k), IRA, Roth IRA, and any other investment accounts earmarked for retirement. Set your current age and your target retirement age, then enter how much you contribute each month. Choose an expected annual return that matches your investment strategy: conservative portfolios heavy on bonds tend to return around 5–6%, a balanced stock-and-bond mix historically returns 7–8%, and an all-equity portfolio targeting growth can average 10% or more over long periods, though with higher volatility. The calculator updates results instantly as you adjust any input, so you can experiment freely.
Fill in your expected Social Security benefit (you can find your personalized estimate at ssa.gov), plus any pension or rental income you expect in retirement. The calculator combines all these sources with your projected portfolio withdrawal to show whether you will meet, exceed, or fall short of your desired monthly retirement income. If there is a gap, it tells you exactly how much more you need to contribute each month to close it.
Understanding the 4% Rule
The 4% rule is one of the most widely cited guidelines in retirement planning. It originated from the 1994 Trinity Study, which analyzed historical market data to determine a safe withdrawal rate that would sustain a portfolio for at least 30 years. The idea is simple: withdraw 4% of your nest egg in the first year of retirement, then adjust that amount for inflation each subsequent year. For example, a $1,000,000 portfolio supports $40,000 per year ($3,333 per month) in the first year. This calculator shows your sustainable monthly withdrawal at 3%, 4%, and 5% rates so you can compare conservative, standard, and aggressive approaches. The 3% rate is favored by financial planners who worry about sequence-of-returns risk or expect lower future market returns, while the 5% rate may suit those with shorter expected retirement periods or additional income sources as a backstop.
What Is Coast FIRE?
Coast FIRE (Financial Independence, Retire Early) is the point at which you have saved enough that compound growth alone — with zero additional contributions — will carry your portfolio to your retirement goal by your target age. Once you reach your Coast FIRE number, you only need to earn enough to cover current living expenses; you no longer need to save for retirement at all. This concept is popular with younger savers who front-load contributions aggressively in their 20s and 30s, then shift to lower-paying but more fulfilling work in their 40s. This calculator computes your exact Coast FIRE number based on your target nest egg, expected return, and years until retirement. If your current savings already exceed it, congratulations — you have achieved Coast FIRE status.
How Inflation Erodes Retirement Income
Inflation is the silent killer of retirement plans. At a seemingly modest 3% annual rate, the purchasing power of $5,000 per month drops to the equivalent of roughly $2,400 over 25 years. This calculator uses a real return approach: it subtracts the inflation rate from the nominal return to project your nest egg in today’s dollars. This means the projected nest egg you see represents actual purchasing power at retirement, not an inflated nominal number that looks larger than it really is. A 7% nominal return with 3% inflation produces a 4% real return — still powerful over decades, but significantly less than the headline number suggests. Planning with real returns prevents the most common retirement planning mistake: thinking you have more purchasing power than you actually do.
Social Security: When to Claim
Your Social Security benefit depends heavily on when you start claiming. You can begin at age 62 at a reduced rate (roughly 70% of your full benefit), claim your full benefit at your Full Retirement Age (66–67 for most), or delay until age 70 for a roughly 32% increase over your full benefit. The “right” age depends on your health, other income sources, and whether you need the cash immediately. Many financial advisors recommend delaying to 70 if you can afford it, as the guaranteed 8% annual increase for delaying is hard to beat with any investment. Enter your best estimate of your monthly Social Security benefit in this calculator to see how it fits into your total retirement income picture.
The Power of Starting Early
Time is the single most powerful variable in retirement planning. A 25-year-old who saves $500 per month at a 7% return until age 65 accumulates approximately $1.2 million. A 35-year-old saving the same amount reaches only about $567,000 — less than half — despite contributing for 30 years instead of 40. The extra decade of compounding nearly doubles the outcome. This is why financial planners consistently emphasize starting early, even with small amounts. If you are starting later, the calculator shows exactly how much more you need to contribute monthly to reach the same goal. Use the sensitivity matrix (Pro feature) to visualize how delaying retirement by even a few years can dramatically improve your outlook.
Building a Complete Retirement Income Strategy
A solid retirement plan rarely relies on a single income source. The most resilient strategies combine multiple streams: Social Security provides a guaranteed, inflation-adjusted baseline; pensions (if available) add stability; rental income offers growth potential; and portfolio withdrawals provide flexibility. The income waterfall chart (Pro feature) visualizes exactly how these sources stack up against your desired income. If your total falls short, you have several levers to pull: increase current contributions, delay retirement by a year or two, reduce your desired income target, or pursue additional income sources. Even small adjustments compound into significant differences over a 20–30 year horizon. Explore related tools like our Compound Interest Calculator to model investment growth scenarios, or our Inflation Calculator to see how purchasing power shifts over time. Browse all Everyday Calculator tools.
Frequently Asked Questions
How much do I need to retire?
A common rule of thumb is to save 25 times your annual expenses, which supports a 4% withdrawal rate indefinitely under historical market conditions. If you spend $60,000 a year, that's $1.5 million. The exact figure depends on longevity, Social Security, and investment mix.
What is the 4% rule?
The 4% rule, from the 1994 Trinity Study, says a retiree can withdraw 4% of their starting portfolio in year one and adjust for inflation each year thereafter with a high probability of the money lasting 30 years. It is a guideline, not a guarantee, and newer research suggests 3.3% to 4% is more prudent today.
What is Coast FIRE?
Coast FIRE is the point where your existing investments, left to compound untouched, will grow large enough to fund retirement at your target age without any further contributions. Reaching Coast FIRE means you can downshift career intensity while your portfolio grows on its own.
Is Social Security going to be there?
Social Security is funded through 2034 at full benefits based on current projections, after which payroll tax revenue alone can fund roughly 77% to 80% of scheduled benefits unless Congress acts. Most planners model some benefit (often 70% to 100%) rather than assuming zero.
What average return should I assume?
For long-horizon equity-heavy portfolios, 7% after inflation (or around 9% to 10% nominal) is a common historical average. Be conservative in projections: assuming 6% after inflation leaves a cushion for sequence-of-returns risk and lower future market expectations.