function calculateRetirement() {
var currentAge = parseFloat(document.getElementById('currentAge').value);
var retirementAge = parseFloat(document.getElementById('retirementAge').value);
var annualIncome = parseFloat(document.getElementById('annualIncome').value);
var currentSavings = parseFloat(document.getElementById('currentSavings').value);
var monthlySavings = parseFloat(document.getElementById('monthlySavings').value);
var expectedGrowth = parseFloat(document.getElementById('expectedGrowth').value) / 100;
var replacementRate = parseFloat(document.getElementById('replacementRate').value) / 100;
var inflationRate = parseFloat(document.getElementById('inflationRate').value) / 100;
if (isNaN(currentAge) || isNaN(retirementAge) || retirementAge 0) {
fvContributions = monthlySavings * ((Math.pow(1 + monthlyGrowth, totalMonths) – 1) / monthlyGrowth);
} else {
fvContributions = monthlySavings * totalMonths;
}
var totalNestEgg = fvCurrent + fvContributions;
// Adjust annual income for inflation to see target in future dollars
var targetAnnualIncomeFuture = (annualIncome * replacementRate) * Math.pow(1 + inflationRate, yearsToRetirement);
// Fidelity Benchmark: 10x salary at age 67
var salaryMultiplierTarget = annualIncome * 10;
var resultDiv = document.getElementById('retirementResult');
resultDiv.style.display = 'block';
document.getElementById('nestEggResult').innerHTML = "Estimated Nest Egg at Age " + retirementAge + ": $" + totalNestEgg.toLocaleString(undefined, {maximumFractionDigits: 0}) + "";
document.getElementById('targetResult').innerHTML = "Estimated Annual Income Needed (Inflation Adjusted): $" + targetAnnualIncomeFuture.toLocaleString(undefined, {maximumFractionDigits: 0});
var withdrawalRate = totalNestEgg * 0.04;
var statusMessage = "";
if (withdrawalRate >= targetAnnualIncomeFuture) {
statusMessage = "You are on track! Your projected annual withdrawal ($" + withdrawalRate.toLocaleString(undefined, {maximumFractionDigits: 0}) + ") covers your goal.";
} else {
statusMessage = "You may have a shortfall. Estimated safe annual withdrawal: $" + withdrawalRate.toLocaleString(undefined, {maximumFractionDigits: 0}) + ".";
}
document.getElementById('gapAnalysis').innerHTML = statusMessage;
document.getElementById('fidelityGuideline').innerHTML = "Fidelity Guideline: By age 67, aim to have 10x your starting salary saved. For your current income, that is approximately $" + salaryMultiplierTarget.toLocaleString() + " in today's dollars.";
}
Understanding Your Fidelity Retirement Strategy
Planning for retirement is one of the most critical financial tasks you will undertake. This Fidelity-inspired retirement calculator helps you project whether your current savings rate and investment portfolio are sufficient to maintain your lifestyle after you stop working.
The Fidelity Retirement Benchmarks
Fidelity suggests several key milestones to help investors track their progress. While every individual's situation is unique, these "multiples of salary" benchmarks serve as a helpful guidepost:
Age 30: Have 1x your annual salary saved.
Age 40: Have 3x your annual salary saved.
Age 50: Have 6x your annual salary saved.
Age 60: Have 8x your annual salary saved.
Age 67: Have 10x your annual salary saved.
Key Factors in the Calculation
Your retirement success depends on several variables that this calculator considers:
Expected Annual Growth: This is the average return you expect from your investments (stocks, bonds, and cash). Historically, a balanced portfolio might see 5-8% annual growth.
Income Replacement Goal: Most experts suggest you will need roughly 70% to 85% of your pre-retirement income to maintain your standard of living.
Inflation Rate: The silent killer of purchasing power. We use this to project what your "target income" will actually look like in the future.
Example Scenario
Imagine a 35-year-old earning $80,000 per year with $60,000 already saved in a 401(k). If they contribute $800 per month and expect a 7% annual return, by age 65, their nest egg could grow to approximately $1.45 million. Based on the 4% rule, this would provide about $58,000 in annual income, plus any Social Security benefits.
How to Close the Retirement Gap
If your results show a shortfall, consider these three "levers":
Increase Contributions: Even an extra 1% or 2% of your salary can make a massive difference due to compound interest over decades.
Delay Retirement: Working just two or three years longer allows your portfolio more time to grow and reduces the number of years you need to draw from it.
Adjust Asset Allocation: Ensure your portfolio isn't too conservative for your age. While riskier, a higher equity allocation generally provides better long-term growth.