Estimate the retirement corpus you need to maintain your lifestyle, based on current monthly expenses, inflation, and expected investment returns.
This tool projects your retirement savings based on your current savings, regular contributions, expected investment returns, and time until retirement, helping you assess whether you're on track to meet your retirement income goals.
Future Value = Current Savings × (1 + r)ⁿ + Annual Contribution × [((1 + r)ⁿ − 1) ÷ r], where r is the annual return rate and n is the number of years until retirement, projecting total accumulated savings at retirement age.
Enter your current age, target retirement age, current savings, regular contribution amount, and expected annual return, and the calculator projects your estimated retirement savings.
Example: Starting with $20,000 at age 30, contributing $500 monthly, and earning a 7% average annual return until age 65 would grow to a substantial retirement balance through decades of compound growth.
How much should I save for retirement? Common general guidelines suggest saving enough to replace roughly 70-80% of pre-retirement income, though the right target varies significantly based on individual expenses, other income sources (like Social Security or pensions), and desired retirement lifestyle.
Why does starting to save early make such a dramatic difference? Compound growth means money invested earlier has many more years to grow, so contributions in your 20s and 30s can end up contributing more to your final balance than larger contributions made later, simply due to the extra time for compounding.
Should retirement projections use a conservative or optimistic return assumption? Many financial planners suggest using a moderately conservative assumption (accounting for market volatility and sequence of returns risk) for retirement projections, since underestimating needs is generally safer than overestimating them for such an important goal.
Does this calculator account for inflation? Basic retirement calculators may or may not automatically adjust for inflation — it's important to check whether projected figures are in today's dollars or future (inflated) dollars, since this significantly affects how to interpret the projected retirement income.
How often should I revisit my retirement plan? It's generally recommended to review retirement projections periodically (such as annually or after major life or income changes), since contribution capacity, goals, and market conditions can shift meaningfully over a multi-decade savings horizon.