How much income do you need in retirement, and how much do you need to save now so that you can have the kind of retirement you want? We created this tool to help you visualize what your finances might look like once you retire and how much you should save now to get the retirement you want.
To use the retirement calculator, enter the values manually, or move the sliders from left to right to change amounts.
Monthly Income Needed in Retirement:
Total Expected Monthly Income in Retirement:
Expected Monthly Income Shortfall:
What do these retirement calculator results mean?
While the results above are strictly hypothetical, they give you an estimate of expected annual cash flow during your retirement years. There are many important factors to consider when planning for your retirement, but this information will help you get started.
Default Income Replacement Rate
Although everyone is different, as a general rule, most people require about 80% of their preretirement income to maintain their current lifestyle during retirement. That means if you make $50,000 a year right before retirement, you’ll probably need about $40,000 a year during retirement. Most people’s required retirement income is lower because they’re no longer paying the costs of working (gas prices, dry cleaning, etc.), tax bills are usually lower, mortgages may be paid for, and children likely no longer require financial support.
Average Rate of Return
Returns vary greatly depending on asset allocation and other factors. A portfolio fully invested in U.S. stocks from 1926 to 2016 grew an average of 9.9% per year, while a portfolio of 10-year U.S. government bonds grew approximately 5.2%. Past performance is no guarantee of future returns.
We assume you will retire at age 65