T Rowe Price Retirement Calculator

T. Rowe Price Retirement Planner

Use this calculator to estimate your potential retirement savings and assess if you're on track to meet your financial goals. Understanding your projected nest egg and the income it can generate is crucial for a secure retirement.

function calculateRetirement() { var currentAge = parseFloat(document.getElementById('currentAge').value); var retirementAge = parseFloat(document.getElementById('retirementAge').value); var currentSavings = parseFloat(document.getElementById('currentSavings').value); var annualContribution = parseFloat(document.getElementById('annualContribution').value); var desiredAnnualIncome = parseFloat(document.getElementById('desiredAnnualIncome').value); var preRetirementReturn = parseFloat(document.getElementById('preRetirementReturn').value); var postRetirementReturn = parseFloat(document.getElementById('postRetirementReturn').value); var inflationRate = parseFloat(document.getElementById('inflationRate').value); // Input validation if (isNaN(currentAge) || isNaN(retirementAge) || isNaN(currentSavings) || isNaN(annualContribution) || isNaN(desiredAnnualIncome) || isNaN(preRetirementReturn) || isNaN(postRetirementReturn) || isNaN(inflationRate)) { alert('Please enter valid numbers for all fields.'); return; } if (retirementAge <= currentAge) { alert('Desired Retirement Age must be greater than your Current Age.'); return; } if (preRetirementReturn < 0 || postRetirementReturn < 0 || inflationRate < 0) { alert('Return rates and inflation rate cannot be negative.'); return; } var yearsToRetirement = retirementAge – currentAge; var preRetirementReturnRate = preRetirementReturn / 100; var postRetirementReturnRate = postRetirementReturn / 100; var inflationRateRate = inflationRate / 100; // 1. Future Value of Current Savings var futureValueCurrentSavings = currentSavings * Math.pow(1 + preRetirementReturnRate, yearsToRetirement); // 2. Future Value of Annual Contributions (Annuity) var futureValueAnnualContributions; if (preRetirementReturnRate === 0) { futureValueAnnualContributions = annualContribution * yearsToRetirement; } else { futureValueAnnualContributions = annualContribution * ((Math.pow(1 + preRetirementReturnRate, yearsToRetirement) – 1) / preRetirementReturnRate); } // Total Projected Savings at Retirement var totalProjectedSavings = futureValueCurrentSavings + futureValueAnnualContributions; // 3. Inflation-Adjusted Desired Annual Income at Retirement var inflationAdjustedDesiredIncome = desiredAnnualIncome * Math.pow(1 + inflationRateRate, yearsToRetirement); // 4. Required Nest Egg to generate desired income (assuming principal is maintained) var requiredNestEgg; if (postRetirementReturnRate 0)' : '$' + requiredNestEgg.toLocaleString(undefined, { minimumFractionDigits: 2, maximumFractionDigits: 2 }); document.getElementById('incomeFromProjectedSavingsResult').innerHTML = '$' + incomeFromProjectedSavings.toLocaleString(undefined, { minimumFractionDigits: 2, maximumFractionDigits: 2 }); var differenceText = '$' + retirementSavingsDifference.toLocaleString(undefined, { minimumFractionDigits: 2, maximumFractionDigits: 2 }); if (retirementSavingsDifference 0) { differenceText += ' (Surplus)'; } else { differenceText += ' (On Target)'; } document.getElementById('differenceResult').innerHTML = differenceText; } .retirement-calculator-container { font-family: 'Segoe UI', Tahoma, Geneva, Verdana, sans-serif; background-color: #f9f9f9; padding: 25px; border-radius: 10px; box-shadow: 0 4px 12px rgba(0, 0, 0, 0.1); max-width: 700px; margin: 20px auto; color: #333; } .retirement-calculator-container h2 { color: #2c3e50; text-align: center; margin-bottom: 20px; font-size: 1.8em; } .retirement-calculator-container h3 { color: #34495e; margin-top: 25px; margin-bottom: 15px; font-size: 1.4em; } .retirement-calculator-container p { line-height: 1.6; margin-bottom: 10px; } .calculator-form .form-group { margin-bottom: 15px; display: flex; flex-direction: column; } .calculator-form label { margin-bottom: 5px; font-weight: bold; color: #555; font-size: 0.95em; } .calculator-form input[type="number"] { padding: 10px; border: 1px solid #ccc; border-radius: 5px; font-size: 1em; width: 100%; box-sizing: border-box; } .calculator-form button { background-color: #28a745; color: white; padding: 12px 20px; border: none; border-radius: 5px; font-size: 1.1em; cursor: pointer; transition: background-color 0.3s ease; width: 100%; margin-top: 20px; } .calculator-form button:hover { background-color: #218838; } .calculator-results { background-color: #e9f7ef; border: 1px solid #d4edda; border-radius: 8px; padding: 20px; margin-top: 30px; } .calculator-results p { font-size: 1.1em; margin-bottom: 8px; color: #333; } .calculator-results strong { color: #2c3e50; } .calculator-results span { font-weight: bold; color: #007bff; } .calculator-results span#differenceResult { color: #dc3545; /* Red for shortfall */ } .calculator-results span#differenceResult:contains("Surplus") { color: #28a745; /* Green for surplus */ } .calculator-results span#differenceResult:contains("On Target") { color: #ffc107; /* Yellow for on target */ } @media (max-width: 600px) { .retirement-calculator-container { padding: 15px; } .calculator-form button { font-size: 1em; padding: 10px 15px; } }

Understanding Your Retirement Future with the T. Rowe Price Retirement Planner

Planning for retirement is one of the most critical financial steps you'll take. It's not just about saving money; it's about ensuring you have the financial resources to live comfortably and securely when you decide to stop working. Our T. Rowe Price-inspired Retirement Planner helps you visualize your financial future, estimate your potential nest egg, and determine if you're on track to meet your retirement income goals.

Why Retirement Planning Matters

The earlier you start planning, the more time your money has to grow. Retirement planning helps you:

• Set Clear Goals: Define how much income you'll need and when you want to retire.
• Leverage Compounding: Understand how consistent contributions and investment returns can significantly multiply your savings over decades.
• Account for Inflation: Recognize that the cost of living will increase over time, and your retirement income needs to keep pace.
• Identify Shortfalls Early: Discover if you're saving enough or if adjustments are needed to reach your targets.

How the Calculator Works

This planner takes several key factors into account to provide a comprehensive projection:

1. Current Age & Desired Retirement Age: These determine your investment horizon – the number of years you have to save.
2. Current Retirement Savings: Your existing nest egg forms the foundation of your future wealth.
3. Annual Retirement Contribution: The amount you consistently save each year is a powerful driver of growth.
4. Desired Annual Retirement Income (in today's dollars): This is your target income, expressed in current purchasing power. The calculator adjusts this for inflation to estimate what you'll need in future dollars.
5. Expected Annual Investment Return (Pre-Retirement): The average annual growth rate you anticipate your investments will achieve before you retire. Higher returns accelerate your savings.
6. Expected Annual Investment Return (Post-Retirement): The average annual growth rate you anticipate your investments will achieve during your retirement years. This rate helps determine how much income your nest egg can sustainably generate.
7. Expected Annual Inflation Rate: The rate at which the cost of goods and services is expected to increase. Inflation erodes purchasing power, so it's vital to factor it into your income needs.

Understanding Your Results

• Projected Savings at Retirement: This is the estimated total value of your retirement accounts when you reach your desired retirement age, considering your current savings, future contributions, and pre-retirement investment returns.
• Required Nest Egg for Desired Income: This figure represents the total amount of savings you would need at retirement to generate your inflation-adjusted desired annual income, based on your post-retirement investment return. It assumes you want to maintain your principal and live off the investment income.
• Estimated Annual Income from Projected Savings: This shows how much annual income your projected nest egg could realistically provide during retirement, based on your post-retirement return rate.
• Difference (Projected Savings – Required Nest Egg): This is the crucial metric.
  • A positive difference (Surplus) indicates you are projected to have more than enough savings to meet your desired income goal.
  • A negative difference (Shortfall) suggests you may need to save more, adjust your retirement age, or reconsider your desired retirement income.
  • Being On Target means your projected savings closely match your required nest egg.

Realistic Examples

Let's look at a few scenarios:

Example 1: Starting Early and Consistent Saving

• Current Age: 25
• Desired Retirement Age: 65
• Current Retirement Savings: $10,000
• Annual Retirement Contribution: $8,000
• Desired Annual Retirement Income (today's dollars): $50,000
• Expected Annual Investment Return (Pre-Retirement): 7%
• Expected Annual Investment Return (Post-Retirement): 5%
• Expected Annual Inflation Rate: 3%

In this scenario, with 40 years of saving and compounding, the projected savings could be substantial, potentially leading to a surplus even with a modest starting amount, thanks to the power of time and consistent contributions.

Example 2: Later Start, Higher Contributions

• Current Age: 45
• Desired Retirement Age: 65
• Current Retirement Savings: $150,000
• Annual Retirement Contribution: $15,000
• Desired Annual Retirement Income (today's dollars): $70,000
• Expected Annual Investment Return (Pre-Retirement): 6%
• Expected Annual Investment Return (Post-Retirement): 4%
• Expected Annual Inflation Rate: 3%

Even with a later start, higher current savings and aggressive annual contributions can help bridge the gap. However, the shorter time horizon means compounding has less impact, often requiring a higher savings rate to meet goals.

What to Do if You Have a Shortfall

Don't be discouraged if the calculator shows a shortfall. This is a planning tool designed to help you make informed decisions. Here are some strategies:

• Increase Annual Contributions: Even small increases can make a big difference over time.
• Delay Retirement: Working a few extra years allows more time for savings to grow and reduces the number of years you'll need to draw from your nest egg.
• Reduce Desired Retirement Income: Re-evaluate your post-retirement lifestyle and see if you can comfortably live on less.
• Adjust Investment Strategy: Consider if your current investments are aligned with your risk tolerance and growth objectives. Higher returns (with higher risk) can accelerate growth.
• Reduce Expenses: Cut back on current spending to free up more money for retirement savings.

This T. Rowe Price Retirement Planner is a powerful tool to guide your financial journey. Use it regularly to track your progress and make adjustments as your life circumstances and financial goals evolve.