See if you're on track for retirement based on your savings, contributions, and goals.
This calculator uses the compound growth formula to project your savings. Each month, your existing balance grows by the monthly return rate, and your new contribution is added. Over decades, compound growth does most of the heavy lifting. A person who saves $500 per month starting at age 25 with a 7% average return will have over $1.3 million by age 65. The same person starting at 35 would have roughly $610,000. That 10-year head start more than doubles the result, even though the extra contributions only total $60,000. For tax-advantaged retirement accounts, see our guide on Roth vs Traditional IRA.
The 4% rule, developed from the Trinity Study, suggests that you can withdraw 4% of your retirement savings in the first year of retirement, then adjust for inflation each subsequent year, with a high probability that your money will last 30 years. So if you have $1,000,000 saved, you can withdraw roughly $40,000 per year ($3,333/month). The rule was based on historical stock and bond returns from 1926 to 1995. More recent research suggests that 3.5% may be a safer withdrawal rate given current market conditions and longer life expectancies.
A common guideline is to save 25 times your desired annual retirement income. If you want $4,000/month ($48,000/year) in retirement, you'd target $1,200,000 in savings. This aligns with the 4% withdrawal rule. However, the right number depends on your expected Social Security benefits, any pension income, your planned retirement age, where you plan to live, and your health care needs.
Fidelity Investments suggests these milestones based on multiples of your annual salary: by age 30, aim for 1x your salary saved; by 40, 3x; by 50, 6x; by 60, 8x; and by 67, 10x your annual salary. These are rough guidelines, not hard rules. Someone with a pension or significant Social Security income may need less. Someone planning early retirement or living in a high-cost area may need more.
The long-term average annual return of the S&P 500 (with dividends reinvested) is roughly 10% before inflation, or about 7% after inflation. A balanced portfolio of stocks and bonds might average 6-8%. For conservative planning, many financial advisors recommend using 6-7% for a stock-heavy portfolio and 4-5% for a balanced portfolio. Keep in mind that actual returns vary year to year, and past performance does not guarantee future results.
Inflation erodes purchasing power over time. At 3% annual inflation, $1 million today would have the purchasing power of roughly $412,000 in 30 years. This is why retirement projections should account for inflation, either by using inflation-adjusted return rates (real returns) or by inflating your target spending amount. The calculator above uses nominal (pre-inflation) returns, so consider that your future dollars will buy less than today's dollars.
Social Security benefits replace roughly 40% of pre-retirement income for average earners. The full retirement age is 67 for those born in 1960 or later. You can claim benefits as early as 62, but your monthly benefit will be permanently reduced by about 30%. Delaying benefits past full retirement age increases them by 8% per year up to age 70. For many retirees, optimizing Social Security timing is one of the highest-impact financial decisions available.
Maximizing tax-advantaged accounts is one of the most effective retirement strategies. In 2026, the 401(k) contribution limit is $24,500 ($32,500 if you are 50 or older, or $35,750 if you are 60-63 under the SECURE 2.0 super catch-up). Traditional and Roth IRA limits are $7,500 ($8,600 if 50+). Traditional 401(k) and IRA contributions reduce your taxable income now, with taxes owed upon withdrawal. Roth contributions are made with after-tax dollars, but withdrawals in retirement are tax-free. A mix of both gives you flexibility to manage your tax bracket in retirement.
For age-by-age savings benchmarks and strategies, read our guide on Retirement Savings by Age. To see how your monthly contributions grow over time, try the Compound Interest Calculator. If you are also saving toward financial independence, the FIRE Calculator can estimate your early retirement timeline.