Retirement Calculator
Project your retirement nest egg, calculate a sustainable monthly withdrawal, check if your savings are on track, and see the full income gap analysis including Social Security and pension income. Uses the 4% Rule and sustainable withdrawal models.
Retirement Planning Formulas
The 4% Rule (Bengen Rule)
Safe Annual Withdrawal = Nest Egg × 4%
William Bengen (1994) found that a 4% initial withdrawal rate, adjusted annually for inflation, historically lasted 30+ years across all market cycles using a 50/50 stock-bond portfolio. For a 35-year retirement, some planners use 3.5%; for a 40+ year retirement, 3.25%.
Sustainable Withdrawal (PMT Formula)
Monthly Withdrawal = PV × r / (1 − (1+r)^−n)
PV = nest egg r = monthly return n = months in retirement
Nest Egg Benchmarks by Age — To Retire at 65 with $5,000/month
| Current Age | You Should Have Saved | Required Monthly Contrib.* |
|---|---|---|
| 25 | ~$25,000–$35,000 | ~$850/month |
| 30 | ~$50,000–$75,000 | ~$1,200/month |
| 35 | ~$100,000–$150,000 | ~$1,750/month |
| 40 | ~$200,000–$250,000 | ~$2,600/month |
| 45 | ~$350,000–$450,000 | ~$4,200/month |
| 50 | ~$500,000–$650,000 | ~$7,000/month |
*Assumes 7% annual return, 25-year retirement, $1,800 SS benefit. These are illustrative benchmarks only.
2025 Social Security Quick Facts
| Metric | Value |
|---|---|
| Average retired worker benefit (Jan 2025) | $1,907/month |
| Maximum benefit at full retirement age (2025) | $3,822/month |
| Maximum benefit at age 70 (2025) | $5,108/month |
| Full retirement age (born 1960+) | 67 |
| Early claiming age (reduced benefit) | 62 (up to 30% reduction) |
| Delayed claiming benefit increase/year | 8% per year from FRA to age 70 |
| COLA increase 2025 | 2.5% |
2025 IRA Contribution Limits
| Account | Under 50 | 50 and Over |
|---|---|---|
| Traditional IRA / Roth IRA | $7,000 | $8,000 (+$1,000 catch-up) |
| SEP-IRA (self-employed) | $69,000 or 25% of compensation | Same |
| SIMPLE IRA | $16,500 | $20,000 (+$3,500) |
References
- Social Security Administration (SSA) — Benefit calculators and COLA announcements.
- IRS Publication 590-A — Contributions to Individual Retirement Arrangements (IRAs).
- Bengen, W.P. (1994) — "Determining Withdrawal Rates Using Historical Data," Journal of Financial Planning.
- Employee Benefit Research Institute (EBRI) — Retirement Confidence Survey 2024.
- Pfau, W. (2021) — Retirement Planning Guidebook; safe withdrawal rate research.
