Retirement Calculator
Enter your current age, savings, monthly contributions, and target retirement age. See your projected nest egg — and the monthly income it can support — based on the same math financial planners use.
Project your retirement
The two questions retirement planning actually answers
Every retirement plan reduces to two numbers: what will you have when you stop working, and what will that buy you each year. The first is compound interest — your current balance plus steady contributions growing at your assumed rate until retirement. The second uses a withdrawal rate: the percentage of your portfolio you take out in year one, adjusted for inflation in subsequent years.
The famous 4% rule, from the 1998 Trinity Study, found that withdrawing 4% of a diversified portfolio in year one then adjusting annually for inflation historically survived 30-year retirements in the large majority of historical scenarios. Using 3.5% is more conservative; the calculator's withdrawal field lets you test any assumption.
Real scenarios by age — where you might actually land
Starting at 25: $5,000 saved, $400/month contribution, 7% return until 65. Nest egg: $1,097,000. At 4% withdrawal: $43,880/year from savings plus Social Security. Growth contributes $899,000 — roughly 82% of the final balance. You personally contributed $197,000 over 40 years. The market did the rest.
Starting at 35: $20,000 saved, $700/month, 7% for 30 years. Nest egg: $873,000. At 4%: $34,920/year from savings. Still a strong result — 30 years is plenty of time for compounding to work.
Starting at 45: $50,000 saved, $1,200/month, 7% for 20 years. Nest egg: $625,000. At 4%: $25,000/year from savings — before Social Security, which for most 45-year-olds with steady earnings adds $20,000–35,000/year. Combined, retirement remains viable. The key insight: at 45, the only lever with real power is the contribution amount.
The cost of waiting 10 years: Person A starts at 30 with $500/month. Person B starts at 40 with $500/month. Both retire at 65 at 7%. Person A: $1,022,000. Person B: $453,000. The extra $60,000 in contributions produced $569,000 more in wealth. That difference came from 10 more years of compounding on an increasingly large base.
The 4% rule — what it means and where it fails
The Trinity Study analyzed historical 30-year retirement periods. A 4% initial withdrawal with annual inflation adjustments had a high historical success rate across most market conditions tested — including the Great Depression and the 1970s stagflation. The main failure mode is sequence-of-returns risk: a severe market crash in the first 3–5 years of retirement is far more damaging than the same crash later, because you are withdrawing from a shrinking base before recovery.
This is why many planners now use 3.5% as a more conservative assumption, or use flexible spending rules — spending less when markets are down, more when they are up. The 4% rule also assumes a 30-year horizon. Retiring at 55 with a 40-year horizon needs a lower rate of around 3.3–3.5%.
How Social Security changes the math
This calculator shows savings-only income. For most Americans, Social Security adds significantly. Create a free account at ssa.gov and check your projected benefit — it is based on your actual earnings history. As a rough benchmark: a worker earning $75,000/year retiring at full retirement age receives roughly $25,000–30,000/year from Social Security. Add that to your savings withdrawal and the math often looks more manageable than the savings-only projection suggests.
Delaying Social Security from 62 to 70 increases the benefit by roughly 76% permanently. For healthy people with other income sources to bridge the gap, delaying is often the highest-return financial decision available in retirement planning.
Frequently asked questions
What is the 4% rule?
Withdraw 4% of your portfolio in year one of retirement, then adjust for inflation each subsequent year. Historical modeling shows this has sustained 30-year retirements across most market scenarios. It is a starting benchmark, not a guarantee. Many planners now use 3.5% for safety.
How much do I need to retire?
Multiply your desired annual income from savings by 25. Want $50,000/year? You need $1.25 million in savings. Then subtract your projected Social Security benefit — if SS covers $25,000/year, your savings only need to provide $25,000/year, requiring a $625,000 nest egg. This calculator shows the savings side; ssa.gov shows your Social Security side.
Should I include my 401(k) match in contributions?
Absolutely. The employer match is an immediate 50–100% return — the single best deal in personal finance. Enter your total contribution including the match. Never leave match money unclaimed.
Does this include Social Security?
No — this shows savings-derived income only. Check ssa.gov for your projected benefit. For many households, Social Security covers 30–50% of retirement income needs, which dramatically reduces the nest egg required from savings.
What if I am behind on retirement savings?
The three most powerful levers: maximize contributions (401(k) catch-up limits allow $7,500 extra per year after 50), delay retirement 2–3 years, and reduce planned retirement spending. Even small changes compound meaningfully over 15+ years. Start now regardless of the gap.
What return should I assume?
6–7% is a conservative but historically grounded assumption for diversified portfolios over long periods. 7–8% is moderate. Model both 5% and 8% to understand the range — the difference in outcomes over 25 years is large enough to deserve knowing.
The formula behind your retirement projection
Your projected nest egg uses the future value of an annuity: FV = P × (1 + r)ⁿ + M × [(1 + r)ⁿ − 1] ÷ r, where P = current balance, r = monthly rate (annual rate ÷ 12), n = months to retirement, M = monthly contribution. The withdrawal estimate uses the 4% Rule — withdraw 4% of the portfolio in year one and adjust for inflation annually. This rule survived 30+ year retirement periods in most historical US market conditions, but is a guideline, not a guarantee.
Three real retirement scenarios
Scenario 1 — Starting at 30 in Las Vegas, retiring at 65: $12,000 savings, $400/month contribution, 7% return. Projected: $767,000. 4% withdrawal = $30,680/year + expected Social Security ~$1,800/month = total retirement income ~$4,357/month. Nevada advantage: no state income tax means Roth IRA withdrawals and Social Security are completely tax-free at the state level.
Scenario 2 — Starting at 40, identical inputs: Projected: $361,000. The 10-year head start produces $406,000 more — more than the total contributions in both scenarios combined. This compounding gap cannot be recovered by saving more later.
Scenario 3 — Las Vegas real estate as retirement supplement: Home purchased 2010 for $200,000. Current value ~$520,000. Options at retirement: sell and invest ($450k equity at 4% = $18,000/year), downsize, or reverse mortgage (62+). For many Las Vegas homeowners, paid-off real estate exceeds the financial portfolio — especially for blue-collar and small-business workers who may not have access to employer 401(k) matching.
Nevada retirement advantages
- No state income tax: Traditional IRA/401(k) withdrawals, pension, and Social Security untaxed at state level. A California retiree saves $5,580–$7,980/year in state taxes at $60,000 retirement income. See the Nevada Relocation Calculator.
- Lower property taxes: Clark County averages 0.55–0.75% of assessed value — a $400,000 home costs $2,200–$3,000/year vs. $5,000–$10,000+ in many other states.
- No estate tax: Nevada has no state estate tax — most residents pass assets to heirs estate-tax-free at the state level.
The 4% Rule — what it says and where it breaks down
The 4% Rule assumes: 30-year retirement, diversified US portfolio (~50% stocks/50% bonds), inflation-adjusted annual withdrawals. It breaks down for: early retirees needing 40–50 years of income (many planners use 3–3.5%), portfolios hit by a major bear market in the first decade of retirement (sequence-of-returns risk), or retirees with substantial other income who can withdraw less from the portfolio.
Frequently asked questions
How much do I need to retire?
Multiply your desired annual retirement income by 25. For $60,000/year: $1.5 million. If Social Security covers $24,000/year, you only need $36,000/year from savings — requiring $900,000. The exact number depends on lifestyle, healthcare costs, and other income sources.
What return rate should I use for projections?
6–7% for a balanced portfolio is a common planning assumption. 8–9% for equity-heavy. 4–5% for conservative. For periods over 20 years, 7% is reasonable; for under 10 years, 5–6% is more prudent. These are historical averages — any given period can differ dramatically.
Roth vs. traditional 401(k)?
If your tax rate in retirement will be higher than now, Roth wins. If lower, traditional wins. Most peak earners benefit more from traditional; younger lower-income earners often benefit more from Roth. Nevada has no state income tax, so there is no state-level difference between the two.
Is the 4% withdrawal rule still valid?
It is widely used as a starting framework. Many planners now use 3–3.5% as a more conservative baseline, especially for retirements expected to last 35–40 years. Your specific income mix (Social Security, pension, rental income) reduces pressure on the portfolio and may allow higher sustainable withdrawal rates.
Can home equity replace retirement savings?
Partially, but home equity is illiquid — you can't spend a room. To access it you must sell, take a HELOC (adds a payment), or use a reverse mortgage (62+). The most balanced retirement includes both liquid financial assets (income-producing) and paid-off real estate (reducing monthly expenses).
When should I start taking Social Security?
Claiming at 62 reduces benefits by ~30% vs. full retirement age (67 for most). Delaying to 70 increases benefits by 8%/year beyond full retirement age — a guaranteed 24% increase. Break-even age is typically 78–80: if you live past that, delaying is mathematically better. Married couples should coordinate strategies to maximize the surviving spouse's benefit.
Disclaimer: Retirement projections are estimates and are not guaranteed. Past market performance does not predict future results. The 4% rule is a guideline, not a guarantee of portfolio survival. Consult a licensed financial planner (CFP) before making retirement planning decisions. Stanley King (NV BS.0143719) is not a licensed financial advisor.