Retirement Planner
Project your retirement savings, see if you are on track and find out what to change if you are not.
Your information
Most retirees need 70-90% of pre-retirement income
Savings and investments
Historical stock market average: about 10%
Long-term US average: about 3%
Average benefit: about $1,800 a month
Plan conservatively (85-95) to avoid running out
Retirement savings milestones
Common savings targets by age, based on your current income of $75,000.
| Age | Target | Rule of thumb | Status |
|---|---|---|---|
| Age 30 | $75,000 | 1x annual salary saved | Passed |
| Age 35 | $150,000 | 2x annual salary saved | Upcoming |
| Age 40 | $225,000 | 3x annual salary saved | Upcoming |
| Age 45 | $300,000 | 4x annual salary saved | Upcoming |
| Age 50 | $450,000 | 6x annual salary saved | Upcoming |
| Age 55 | $525,000 | 7x annual salary saved | Upcoming |
| Age 60 | $600,000 | 8x annual salary saved | Upcoming |
| Age 65 | $750,000 | 10x annual salary saved | Upcoming |
Retirement planning tips
Six habits that do most of the work over a 30-year horizon.
- Start early
- Time is your greatest asset. Starting at 25 vs 35 can mean hundreds of thousands more in retirement.
- Maximize employer match
- Always contribute enough to get your full employer 401(k) match. It's free money with an immediate 100% return.
- Increase contributions
- Increase your contribution rate by 1% each year or whenever you get a raise.
- Diversify investments
- Use low-cost index funds and target-date funds for broad market exposure and automatic rebalancing.
- Consider Roth options
- Roth 401(k) and IRA contributions provide tax-free growth and withdrawals in retirement.
- Plan for healthcare
- Healthcare costs can be significant in retirement. Consider HSAs and long-term care insurance.
Frequently asked questions
- How much should I save for retirement?
- Financial experts generally recommend saving 10-15% of your gross income for retirement, including employer contributions. If you're starting late, you may need to save 20% or more. The key is to start as early as possible and increase your savings rate over time.
- When should I start saving for retirement?
- The best time to start saving for retirement is as soon as you have a steady income. Even small amounts in your 20s can grow significantly due to compound interest. If you haven't started yet, the second-best time is right now, regardless of your age.
- What types of retirement accounts should I use?
- Start with your employer's 401(k) if available, especially if they offer matching. Then consider an IRA (Traditional or Roth). HSAs are also excellent retirement vehicles if you have a high-deductible health plan. Diversifying across account types provides tax flexibility in retirement.
- Is a 7% annual return realistic?
- Historically, the stock market has averaged about 10% annual returns, while a diversified portfolio of stocks and bonds typically returns 7-8%. However, returns vary significantly year to year. It's better to be conservative in your planning and pleasantly surprised if you do better.
- What are catch-up contributions?
- If you're 50 or older, you can make additional "catch-up" contributions to retirement accounts. For 2026, you can contribute an extra $8,000 to 401(k)s ($32,500 total) and an extra $1,100 to IRAs ($8,600 total). This helps those who started saving later or want to accelerate their savings.
- Will Social Security be enough for retirement?
- Social Security typically replaces only about 40% of your pre-retirement income. Most retirees need 70-90% of their pre-retirement income to maintain their lifestyle. You'll likely need personal savings and retirement accounts to bridge this gap.
- How does inflation affect retirement planning?
- Inflation reduces your purchasing power over time. What costs $1 today might cost $2.40 in 30 years with 3% inflation. That's why it's important to invest in assets that can grow faster than inflation, like stocks, and to regularly review and adjust your retirement plan.
- Is early retirement possible?
- Early retirement is possible with aggressive savings (25-50% of income), careful planning, and often lifestyle adjustments. The FIRE (Financial Independence, Retire Early) movement shows it's achievable, but requires significant discipline and typically a high income or very low expenses.
- What happens to my 401(k) when I change jobs?
- You have several options: leave it with your former employer, roll it into your new employer's 401(k), roll it into an IRA, or cash it out (not recommended due to taxes and penalties). Rolling over to an IRA usually gives you the most investment options.
- How much should I budget for healthcare in retirement?
- Healthcare costs are often the largest expense in retirement. A 65-year-old couple may need $300,000+ just for healthcare costs in retirement. Consider maximizing HSA contributions while working, as HSAs offer triple tax benefits and can be used for healthcare expenses in retirement.
- How much can I safely withdraw in retirement?
- The traditional "4% rule" suggests withdrawing 4% of your portfolio value in the first year of retirement, then adjusting for inflation. However, this may be too aggressive in today's low-interest environment. Many advisors now recommend 3-3.5% as a safer withdrawal rate.
- What if the market crashes near my retirement?
- Market timing risk is real. As you approach retirement, gradually shift to a more conservative allocation. Consider having 1-2 years of expenses in cash or bonds. You might also plan for a flexible retirement date, working a bit longer if the market is down when you planned to retire.
Important disclaimer
This retirement planner is for educational and planning purposes only. The calculations are estimates based on the assumptions you provide and should not be considered as personalized financial advice.
Investment performance: Past performance does not guarantee future results. Market returns can vary significantly, and actual investment returns may be higher or lower than projected. The default 7% return assumption is based on historical market averages but should not be considered guaranteed.
Individual circumstances: Your actual retirement needs may differ based on health, lifestyle changes, family circumstances, inflation rates, tax law changes, and other factors not captured in this calculator.
Professional advice: Consider consulting with a qualified financial advisor, certified financial planner (CFP), or tax professional for personalized retirement planning advice that considers your complete financial picture.
Accuracy: While we strive for accuracy, Warren AI makes no warranties about the completeness, reliability, or accuracy of this information. Use this tool as a starting point for your retirement planning, not as a definitive financial plan.
By the numbers
What the data says
- Year-end 2024
$38,176
Median 401(k) balance among Vanguard plan participants
The average is $148,153, skewed by large accounts
Source: Vanguard, How America Saves 2025 - 1928 to 2024
~10% a year
Long-run average annual return of the S&P 500 including dividends
Before inflation, 1928 to 2024, with wide swings year to year
Source: NYU Stern, Aswath Damodaran historical returns dataset - 2025 guidance
10x income
Retirement savings target by age 67
Milestones: 1x by 30, 3x by 40, 6x by 50, 8x by 60
Source: Fidelity Investments, retirement savings guidelines
National figures from the sources shown, as of the period on each card. They are context, not a forecast or advice for your situation.
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