Retirement Calculator
Estimates retirement savings adequacy and projects future balances at retirement age.
What Retirement Calculator does
A retirement planning tool that estimates how much you will have saved by retirement age and how much you will need to maintain your desired lifestyle. Users input their current age, current savings, annual pre-tax income, monthly contributions, and expected retirement budget. The calculator then projects a future portfolio balance, factoring in salary increases, compound interest, inflation, and investment returns. It also estimates the total capital required for financial independence, using default assumptions of a 67 retirement age, 6% pre-retirement and 5% post-retirement returns, 3% inflation, 2% salary growth, and a life expectancy of 95. Results can be viewed in a graph or summary format, and all default parameters are adjustable in the Advanced Details section.
How to use the NerdWallet Financial Calculators Retirement Calculator
- 1
Enter your current age and current retirement savings balance
- 2
Provide your annual pre-tax income and desired monthly budget in retirement
- 3
Set your expected monthly contributions (default is 10% of income) and adjust investment return rates if needed
- 4
Click Calculate to view projected savings vs. needed amount in Graph or Summary view
Best for
Individuals estimating how their current savings and contribution habits align with future retirement income goals, particularly those who want to see the impact of inflation and salary growth on long-term planning.
Limitations
- Relies on user-provided estimates for investment returns and inflation, which may differ from actual market conditions
- Default assumptions (67 retirement age, 3% inflation, 2% salary increases) may not match every user's personal situation
- Projected results are estimates and do not guarantee specific financial outcomes or account for taxes, fees, or unexpected life events
Retirement Calculator FAQ
- Can I change the retirement age and inflation rate in the calculator?
- Yes, the tool includes an Advanced Details section where you can modify the default retirement age of 67, the 3% inflation rate, the 6% pre-retirement and 5% post-retirement return rates, 2% annual salary increases, and the 95 life expectancy assumption.
- What does the graph view show compared to the summary view?
- The graph view visualizes your projected savings growth over time alongside the target amount needed, while the summary view provides a side-by-side comparison of what you will have saved versus what you will need by retirement age.
- How are Social Security benefits factored into the retirement estimate?
- The calculator includes a default assumption that most people will receive full Social Security benefits at age 67, but users can add or adjust other retirement income sources in the designated field to reflect their personal expected benefits.
- Is the monthly contribution amount fixed, or can I set a specific dollar amount?
- The default monthly contribution is set at 10% of monthly income, but you can enter a specific dollar amount or percentage in the monthly contributions field to match your actual saving habits.
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