Retirement Nest Egg Calculator
Plan your future and determine exactly how much you need to save.
Your Retirement Roadmap
How to Use the How Much Do I Need to Retire Calculator
Planning for retirement is one of the most critical financial tasks you will ever undertake. This calculator uses your current spending habits and investment projections to determine the "Nest Egg" required to maintain your lifestyle without a paycheck.
The 4% Rule Explained
Most financial planners reference the "Safe Withdrawal Rate" (SWR). The 4% rule suggests that if you withdraw 4% of your initial retirement portfolio in the first year (and adjust for inflation thereafter), your money has a high probability of lasting 30 years or more. Our calculator lets you adjust this; for example, a 3% SWR is more conservative, while 5% is more aggressive.
Accounting for Inflation
A dollar today will not buy the same amount of goods 30 years from now. This calculator automatically adjusts your current annual expenses based on the Expected Inflation Rate you provide. If you spend $50,000 today, and inflation averages 3%, you will need approximately $121,000 per year in 30 years just to maintain the same standard of living.
Example Calculation
- Current Age: 35
- Retirement Age: 65 (30 years to save)
- Current Expenses: $60,000
- Inflation: 3%
- Result: At age 65, you need $145,635 annually. Using a 4% SWR, your target nest egg is $3,640,875.
Frequently Asked Questions
What is a good investment return rate? While the S&P 500 has averaged roughly 10% historically, many experts suggest using 6% to 8% for projections to remain conservative and account for fees and market volatility.
Does this include Social Security? No, this calculator focuses purely on your personal savings (401k, IRA, Brokerage). If you expect Social Security benefits, you can subtract your estimated annual benefit from your "Current Annual Expenses" before calculating.