Retirement Calculator

Fidelity's guideline is to save 1x your salary by 30, 3x by 40, 6x by 50, 8x by 60 and 10x by 67. These assume you save about 15% of your income from age 25 and retire at 67. They're rough targets. Your own number depends on your spending, retirement age and other income, so don't panic if you're behind. Just start.

Using Fidelity's benchmark, about three times your salary, so $225,000 on a $75,000 income. Many people have less. If that's you, raising your savings rate by a few points and capturing any employer match makes a real difference with 25 or so working years left. Our 401(k) calculator shows what a higher contribution rate adds by retirement.

A common target is 15% of your gross income, including any employer match. If you start late or want to retire early, you may need more. If you have a generous pension, you may need less. Even if you can't reach 15% today, increasing your rate by one point each year, especially when you get a raise, can build up over time without hurting much.

The 4% rule says you could withdraw 4% of your portfolio in your first retirement year, then adjust that dollar amount for inflation each year, with a good chance of lasting 30 years. It's based on US historical returns and a stock and bond mix. A $1 million portfolio gives $40,000 in year one. It isn't a guarantee, and a longer retirement or poor early returns could call for less.

Estimate your yearly spending, subtract reliable income such as Social Security or a pension, and multiply the gap by 25. If you'll spend $70,000 and receive $25,000 from Social Security, the gap is $45,000, and the target is $1,125,000. Add a cushion for health care and big one-off costs. If you're close to retiring, a fee-only adviser can stress-test your plan.

It depends on the account. With a traditional 401(k) or IRA, contributions are often pre-tax, growth is tax-deferred, and withdrawals are taxed as income. With a Roth account, you contribute after-tax money, and qualified withdrawals are tax free. Taxable brokerage accounts have no such shelter, though long-term gains may be taxed at lower rates. Holding some of each gives you flexibility later.

The Saver's Credit is a US tax credit for lower- and moderate-income workers who contribute to a retirement account. It can be worth 10%, 20% or 50% of up to $2,000 of contributions, or $4,000 for couples, depending on income. It's easy to miss, so check the IRS page for current income limits and how to claim it on your return.

If your employer offers a 401(k) with a match, that's often the first stop, because the match is an immediate return. After that, many people consider a Roth IRA for tax-free growth, then go back to the 401(k). Self-employed people can look at a SEP IRA or solo 401(k). Compare fees and investment options, since costs eat directly into your long-term return.

You can claim from age 62, but your monthly benefit is permanently reduced. Your full retirement age is 67 if you were born in 1960 or later. Waiting beyond that raises your benefit until age 70. The best time depends on your health, savings and spouse. Create an account at ssa.gov to see your own estimates.

It's a rule used by some public pension systems, often for teachers and government workers. You can retire with a full pension when your age plus years of service add up to 80, so someone aged 55 with 25 years qualifies. The exact number and details vary by plan. It doesn't apply to 401(k)s or Social Security, so check with your own plan if you have a pension.

FIRE stands for financial independence, retire early. Followers save a large share of their income, sometimes 50% or more, and invest it until their portfolio can cover their expenses. Since they may need their money for 40 or 50 years, many use a withdrawal rate below 4%. Health insurance before Medicare at 65 and early withdrawal rules are key planning issues.