How to Use the Retirement Calculator
- 1Enter your current age and target retirement age.
- 2Input your existing retirement savings and planned monthly contribution.
- 3Set an expected annual return (7% is a common historical average for a diversified portfolio).
- 4Click Calculate Retirement to see your projection.
How Much Should I Have Saved for Retirement?
Fidelity recommends the following savings benchmarks by age: 1× salary by 30, 3× by 40, 6× by 50, 8× by 60, and 10× your salary by retirement at 67. These are general guidelines — your actual needs depend on your expected lifestyle and expenses in retirement.
The 4% Rule Explained
The 4% rule is a widely used guideline suggesting you can withdraw 4% of your total retirement savings per year without running out of money over a 30-year retirement. If you need $60,000/year to live comfortably, you'd need a nest egg of $1.5 million ($60,000 ÷ 0.04).
Maximizing Retirement Savings
- 401(k): 2026 contribution limit is $24,500 ($32,500 if age 50+, or $35,750 for ages 60–63)
- IRA: Contribution limit is $7,500 ($8,600 if age 50+) for 2026
- Always get the employer match: It's free money — at minimum, contribute enough to get the full match
- Roth vs. Traditional: Roth is generally better if you expect to be in a higher tax bracket in retirement
Worked Example: Your Savings Target and the 4% Rule
The 4% rule is a rough guideline: if you withdraw about 4% of your portfolio in the first year of retirement, and adjust for inflation afterward, your savings have historically had a good chance of lasting around 30 years. Turning that around, a target is about 25 times your annual spending. If you expect to spend $60,000 per year, that points to about $1,500,000; for $48,000 per year, about $1,200,000. It is a planning shortcut, not a guarantee, and your own situation (retirement age, other income, taxes, and market returns) can change the answer.
If you save $500 per month for 30 years and earn an average of 7% per year, you would have about $610,000. Increasing contributions as your income grows, or capturing an employer match, can close a gap faster than hoping for higher returns.
Why Inflation Matters
A large number in the future buys less than it does today. At 3% annual inflation, $1,000,000 in 25 years has the purchasing power of only about $478,000 in today's dollars. When you plan, think in today's dollars or use a realistic inflation assumption, and revisit your plan every year or after major life changes. Account limits for 2026 are listed above: $24,500 for a 401(k) and $7,500 for an IRA, with higher limits for catch-up contributions if you are 50 or older.
Prepared by the ProCalcTools editorial team and last reviewed in October 2026. This page is for general information and is not financial, tax, or medical advice.