Project the size of your retirement nest egg from your current savings, monthly contributions, expected return, and the years left until you retire.
Your current balance grows by P(1+r)n and each monthly contribution is compounded as an annuity, where r is the monthly return (annual ÷ 12) and n is the number of months until retirement. The estimated annual income line applies the commonly cited 4% rule as a rough guide to sustainable yearly withdrawals; it is a starting point, not a recommendation.
Long-run diversified portfolio returns are often modeled between 5% and 8% before inflation, but actual returns vary widely and can be negative in some years. Use a conservative figure for planning.
The 4% rule is a rough guideline suggesting you can withdraw about 4% of your retirement balance in the first year, then adjust for inflation. It is a planning heuristic, not a guarantee, and may not fit every situation.
Only if you include the match in your monthly contribution figure. Employer contributions can substantially increase your total, so add them in if applicable.
No. The projected balance is in nominal dollars. Future purchasing power will be lower, so consider that when judging whether the amount is enough.
There is no single answer; it depends on your expenses, other income like pensions or social programs, and lifestyle. This tool helps you test scenarios, but a financial professional can build a tailored plan.
Disclaimer: This tool provides an estimate for general informational purposes only and is not financial or investment advice. Investment returns are not guaranteed and may be negative. Consult a licensed financial professional before making retirement decisions.