Will You Outlive Your Money?
It's the question that keeps many of us awake at night. Retirement should be about freedom, not financial stress. The good news? You don't need to be a Wall Street genius to secure your future.
This calculator does the heavy lifting, showing you exactly how your current savings and monthly contributions will grow over time thanks to the magic of compound interest.
The "Rule of 25" Shortcut
How much do you really need? A popular benchmark is the Rule of 25:
- Take your desired annual retirement income (e.g., $60,000).
- Subtract any guaranteed income like Social Security or pensions (e.g., -$20,000 = $40,000 needed from savings).
- Multiply that number by 25 ($40,000 × 25 = $1,000,000).
This gives you a rough target to aim for, assuming you withdraw 4% per year.
Frequently Asked Questions
The 4% Rule is the gold standard. It suggests that if you withdraw 4% of your portfolio in the first year of retirement and adjust for inflation annually, your money has a very high chance of lasting 30 years.
Compound interest needs time. Saving $500/month starting at age 25 can grow to over $1 million by age 65 (at 7% return). Starting at age 45, you'd need to save over $2,000/month to hit the same goal!