Retirement Calculator

Our retirement calculator uses compound interest formulas to project your future savings:

• Considers both current savings and future contributions
• Accounts for investment returns over time
• Adjusts for inflation impact on purchasing power
• Uses the 4% rule for sustainable retirement income

The 4% rule is a widely-used retirement planning guideline that suggests:

• Withdraw 4% of your savings in your first year of retirement
• Adjust this amount annually for inflation
• Designed to make savings last 30+ years
• Based on historical market performance studies

Your return rate should reflect your investment strategy:

• Conservative (5%): Mostly bonds and stable investments
• Moderate (7%): Balanced mix of stocks and bonds
• Aggressive (9%): Primarily stocks for long-term growth
• Consider adjusting based on your risk tolerance and time horizon

Inflation significantly impacts long-term retirement planning:

• Reduces purchasing power of your savings over time
• Historically averages around 3% annually
• Can substantially affect required savings goals
• Important for realistic retirement projections