Retirement Savings Calculator

Retirement planning is the process of setting aside enough money during your working years so you can maintain your lifestyle after you stop working. The earlier you start, the less you need to save each month. How much do you need? A common rule of thumb is the 25x rule: multiply your expected annual expenses in retirement by 25. If you need $50,000/year, you need $1.25 million saved. This is based on the 4% withdrawal rule — withdrawing 4% annually from a diversified portfolio has historically lasted 30+ years. Inflation is critical: $1 million today will be worth much less in 20–30 years. A 3% annual inflation rate cuts purchasing power in half every 24 years. Your retirement savings must grow faster than inflation. Tax-advantaged accounts: 401(k), IRA (US), ISA (UK), and pension plans offer tax benefits that dramatically increase long-term returns. Always maximize employer matching — it's free money. Withdrawal strategy: In retirement, withdraw from taxable accounts first, then tax-deferred accounts, and Roth accounts last. This sequence minimizes lifetime taxes.