Retirement Calculator
Are you saving enough for retirement? Find your retirement gap, run 1,000 Monte Carlo simulations, optimize your Social Security claiming age, compare generational benchmarks, and build a catch-up plan. Includes 6-dimension report card, what-if simulator, and reverse calculator. Free, no login, 100% in your browser.
How to Use the Retirement Calculator
Start by entering your current age, target retirement age, and how much you've already saved. Add your monthly contribution and employer match details. The calculator projects your portfolio value at retirement using real returns (adjusted for inflation), then compares it to your total retirement need — the amount required to sustain your desired lifestyle from retirement through your life expectancy. The difference between these two numbers is your retirement gap. A negative gap means you're behind; a positive gap means you're ahead. The gap verdict ranges from “Critical Gap” to “Well Ahead” with six tiers.
Understanding Your Retirement Gap
Your retirement gap is the single most important number in retirement planning. It tells you, in today's dollars, how much more (or less) you need to save to maintain your lifestyle in retirement. According to the Employee Benefit Research Institute, nearly half of American households are at risk of not having enough for retirement. The Federal Reserve's Survey of Consumer Finances (2022) shows median retirement savings of just $87,000 across all age groups — far below what most people need. This calculator uses real return rates (net of inflation) so the gap number reflects actual purchasing power, not inflated future dollars.
The Monte Carlo Method: Stress-Testing Your Retirement Plan
A single-point projection assumes markets return a steady percentage every year. Reality is different — markets are volatile. The Monte Carlo simulation runs 1,000 scenarios with randomized annual returns (using a normal distribution with 12% standard deviation, matching historical stock market volatility). Each scenario simulates your entire retirement: withdrawing income each year while the market fluctuates. The survival rate tells you what percentage of scenarios your money lasted through your entire retirement. A survival rate above 90% is generally considered robust. Below 75% suggests your plan is vulnerable to sequence-of-returns risk — the danger of experiencing poor market returns early in retirement.
When to Claim Social Security: The $100K Decision
Social Security claiming age is one of the most consequential financial decisions you'll make. Claiming at 62 reduces your benefit by approximately 30% compared to full retirement age (67). Delaying until 70 increases it by 24% over full retirement age — an 8% increase per year of delay. For someone with a $2,200/month benefit at 67, that's the difference between $1,540/month (at 62) and $2,728/month (at 70). Over a 25-year retirement, the lifetime difference between claiming at 62 vs 70 can exceed $100,000. The break-even age — when total benefits from delayed claiming surpass early claiming — is typically 79-82. If you expect to live beyond that age, delaying is usually the better choice.
How Much Should You Have Saved by Age 30, 40, 50, 60?
The Federal Reserve's Survey of Consumer Finances (2022) provides real data on retirement savings by age group. At ages 30-34, the median is $18,000 and the 75th percentile is $68,000. By 40-44, the median rises to $63,000 (75th: $220,000). At 50-54, the median is $150,000 (75th: $500,000). And at 60-64, the median is $240,000 (75th: $750,000). Common financial planning guidelines suggest saving 1x your salary by age 30, 3x by 40, 6x by 50, and 8x by 60. The Generational Comparison section of this calculator shows exactly where you rank against your age group using SCF data.
Frequently Asked Questions
How much do I need to save for retirement?
Most financial planners recommend replacing 70-80% of your pre-retirement income. The exact amount depends on your lifestyle, healthcare needs, Social Security benefits, pension income, and where you plan to live. Enter your details above for a personalized target.
What is the 4% rule?
The 4% rule suggests withdrawing 4% of your portfolio in the first year of retirement, then adjusting for inflation each year. Based on the Trinity Study, this approach survived 95% of 30-year historical periods. Use the Monte Carlo withdrawal slider to test different rates for your specific timeline.
When should I claim Social Security?
If you expect to live past 80-82, delaying to 70 typically maximizes lifetime benefits. If you need income immediately or have health concerns, claiming earlier may make sense. The Social Security Optimizer shows the exact dollar difference.
How much does healthcare cost in retirement?
Fidelity estimates the average 65-year-old couple will spend $315,000 on healthcare in retirement. This includes Medicare premiums, supplemental insurance, prescription drugs, dental, vision, and out-of-pocket costs. Healthcare inflates at ~5%/year.
How much should I have saved by 40?
The median retirement savings for ages 40-44 is $63,000 (Federal Reserve SCF 2022). The 75th percentile is $220,000. A common guideline is 3x your annual salary by 40. Check the Generational Comparison section to see where you rank.
Am I behind on retirement savings?
Enter your numbers above. The calculator gives you a gap verdict (Critical to Well Ahead), a Monte Carlo survival rate, and a generational percentile. If you're behind, the catch-up planner ranks five strategies by effort and impact.