Retirement calculator
See how much you need saved by retirement and the extra monthly saving to get there.
Results
Extra monthly saving needed
$119.92
This is how much more to save each month until age 60 so your savings pay the income you want until 85.
- Money you need at retirement
- $1,142,612.28To pay your income until age 85
- Money you're on course to have
- $963,894.32
- Shortfall
- $178,717.96
- Monthly income at retirement
- $4,854.52Your income goal in future money, after inflation
Warning: Without extra saving, your money would run out at about age 80.
Your savings by age
Saving and PDF download use a free account. Everything else works without one.
How it works
First we raise your income goal by inflation to find what it will cost in the month you retire. Then we work out the savings needed on that day to pay that income every month, rising with inflation, until your chosen age, while the rest stays invested. We compare that with what your current savings and monthly saving are on course to reach, and spread any shortfall over the months you have left to save.
Formula
- Income at retirement W = income wanted × (1 + inflation)^years to retirement
- Money you need = W × (1 − q^n) ÷ (1 − q), where q = (1 + g) ÷ (1 + r) and n = months in retirement
- Savings on course to have = savings × (1 + rb)^m + monthly saving × ((1 + rb)^m − 1) ÷ rb
- Extra monthly saving = (money you need − savings on course to have) ÷ (((1 + rb)^m − 1) ÷ rb)
- r, rb = yearly returns ÷ 12 ÷ 100; g = (1 + inflation)^(1 ÷ 12) − 1
Frequently asked questions
What returns should I assume?
Use a long-run average that fits how you invest, after fees. A mix weighted to shares has historically earned more than cash or bonds but swings more. Many people assume a lower return after retiring because they move into safer investments.
What about a state pension or other income?
Enter only the income your savings must provide. If you expect a pension, rental income or part-time work, subtract it from the monthly income you want. That keeps the savings target realistic.
Why is my income at retirement so much higher than what I entered?
You enter the income in today's money, but prices rise over the years. At 3% inflation, prices roughly double in 24 years, so you need more money later to buy the same things. We also raise the income each month during retirement to keep pace.
What if I live longer than the age I plan until?
The plan assumes your savings run down to zero at that age. Many people plan to an age beyond the average for their country, such as 90 or 95, to leave a margin. You can also check how a later retirement date changes the result.
Does this include tax?
No. Returns and income are before any tax. If your withdrawals will be taxed, raise the monthly income wanted to cover the tax, or use returns after tax.
Related calculators
- Investment calculatorSee what investing every month could grow to, with a yearly increase and an optional lump sum.
- Inflation calculatorSee what something will cost in the future, or what it cost in the past, at a steady inflation rate.
- Savings goal calculatorFind out how much to save each month to reach a target amount by a set time.
- Compound interest calculatorSee how savings grow when interest earns interest, with an optional amount added each month.
Results are estimates only, not financial advice. Read the disclaimer.