Plan your 401k, IRA, and nest egg — with inflation, Social Security, withdrawal rate, and a year-by-year projection through retirement.
| Age | Annual Contrib. | Balance | Real Value | Phase |
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The most widely used benchmark is the 25× rule: multiply your expected annual retirement spending by 25. This is derived from the 4% safe withdrawal rate — research (the Trinity Study) suggesting a diversified portfolio can sustain 4% withdrawals annually for 30+ years with a high probability of success.
Accumulation phase is the years before you retire — you're saving and investing, and compound growth is your engine. Drawdown phase starts at retirement — your portfolio must now generate income while still growing enough to outpace inflation and last your lifetime.
A 401k is employer-sponsored with a 2024 contribution limit of $23,000 ($30,500 if 50+). An IRA (Individual Retirement Account) has a $7,000 limit ($8,000 if 50+). Both offer tax advantages — traditional accounts reduce taxable income now; Roth accounts grow tax-free. Many financial advisors recommend maxing both if possible.
The average Social Security benefit in 2024 is approximately $1,800/month. You can claim from age 62 (reduced benefit) to 70 (maximum benefit — 32% higher than full retirement age). Your actual benefit depends on your earnings history — check ssa.gov for your personal estimate.
FIRE stands for Financial Independence, Retire Early. Followers typically save 50–70% of income and aim to retire in their 40s or earlier. The 4% rule applies, but many FIRE adherents use a more conservative 3–3.5% withdrawal rate for longer retirement horizons of 50+ years. Use the FIRE scenario tab above to model early retirement.
Inflation erodes purchasing power. At 2.5% inflation, $4,000/month today costs ~$6,600/month in 20 years. This calculator adjusts your spending target for inflation, so the "You Need to Retire" figure reflects what you'll actually need — not just today's dollars.
The S&P 500 has averaged ~10% nominally (7–8% after inflation) over the long run. A diversified 80/20 (stocks/bonds) portfolio might average 7–8% during accumulation. In retirement, many advisors recommend shifting to 60/40 or more conservative allocations, reducing expected returns to 4–6%.