Retirement Capital Calculator
Plan your retirement by calculating the capital you need or validating if your current savings are sufficient
Retirement Details
Your target annual spending throughout retirement, in today's dollars. Enter what you would need today to maintain your desired lifestyle - inflation is automatically calculated.
Range: 50-75 years
Range: 65-100 years
Period-Specific Income Adjustments(Optional)
Define periods where your income needs differ from your base annual income (optional)
Period-Specific Income Adjustments(Optional)
Define periods where your income needs differ from your base annual income (optional)
Your base annual income will apply to all years. Add a period adjustment only if your needs vary.
Guaranteed Retirement Income
Government pension, annuities, rental income and other guaranteed sources that will reduce your capital withdrawal needs
Guaranteed Retirement Income
Government pension, annuities, rental income and other guaranteed sources that will reduce your capital withdrawal needs
No external income defined. Add pension, rental income, or other guaranteed revenue sources.
Results
Capital Evolution
Year-by-Year Detailed Projection
| Year | Age | Starting Capital | Withdrawal | Ext. Income | Total Income | Returns 5.00% | Ending Capital |
|---|---|---|---|---|---|---|---|
| 1 | 65 | $ 797,935.00 | $ 50,000.00 | $ 0.00 | $ 50,000.00 | $ 37,396.75 | $ 785,331.75 |
| 2 | 66 | $ 785,331.75 | $ 51,000.00 | $ 0.00 | $ 51,000.00 | $ 36,716.59 | $ 771,048.34 |
| 3 | 67 | $ 771,048.34 | $ 52,020.00 | $ 0.00 | $ 52,020.00 | $ 35,951.42 | $ 754,979.75 |
| 4 | 68 | $ 754,979.75 | $ 53,060.40 | $ 0.00 | $ 53,060.40 | $ 35,095.97 | $ 737,015.32 |
| 5 | 69 | $ 737,015.32 | $ 54,121.61 | $ 0.00 | $ 54,121.61 | $ 34,144.69 | $ 717,038.40 |
| ... 11 Years ... | |||||||
| 17 | 81 | $ 324,136.49 | $ 68,639.29 | $ 0.00 | $ 68,639.29 | $ 12,774.86 | $ 268,272.06 |
| 18 | 82 | $ 268,272.06 | $ 70,012.07 | $ 0.00 | $ 70,012.07 | $ 9,913.00 | $ 208,172.99 |
| 19 | 83 | $ 208,172.99 | $ 71,412.31 | $ 0.00 | $ 71,412.31 | $ 6,838.03 | $ 143,598.71 |
| 20 | 84 | $ 143,598.71 | $ 72,840.56 | $ 0.00 | $ 72,840.56 | $ 3,537.91 | $ 74,296.06 |
| 21 | 85 | $ 74,296.06 | $ 74,296.06 | $ 0.00 | $ 74,296.06 | $ 0.00 | $ 0.00 |
| Total Withdrawals | $ 1,289,164.55 | Total Returns | $ 491,229.55 | $ 0.00 | |||
How to Use the Retirement Calculator
This retirement calculator helps you determine how much capital you need for retirement or validate if your current savings are sufficient. You can create up to 4 scenarios to compare different retirement strategies.
To use the tool:
- Choose between 'Required Capital' mode (calculate how much you need) or 'Validate Capital' mode (check if your savings are enough)
- Enter your retirement age and life expectancy
- Specify inflation and investment return rates
- Define your income needs by age ranges (tranches)
Retirement Planning Guide
Retirement planning is one of the most important financial challenges of your life. Understanding the fundamentals will help you make informed decisions and enjoy a comfortable retirement.
What Is Retirement Planning?
Retirement planning involves determining how much money you'll need to maintain your standard of living once you stop working, and developing a strategy to get there.
It involves estimating your future expenses, evaluating your income sources (pensions, investments, government benefits), and calculating the capital needed to bridge the gap between the two.
How Much Money Do You Need for Retirement?
The general rule suggests targeting 70-80% of your pre-retirement income, but your actual needs depend on several factors:
- Your desired lifestyle (travel, hobbies, healthcare)
- Your debts in retirement (mortgage paid off or not)
- Your health status and anticipated medical costs
- Your guaranteed income sources (pensions, Social Security)
- The expected duration of your retirement
Use our calculator to determine your personalized amount.
The Power of Compound Interest
Time is your best ally in retirement planning thanks to compound interest - returns on your returns.
Example with 7% annual return:
- $10,000 invested at age 25 = $149,745 at age 65
- $10,000 invested at age 35 = $76,123 at age 65
- $10,000 invested at age 45 = $38,697 at age 65
Starting early, even with small amounts, makes a huge difference. Each decade of delay cuts your growth potential in half.
Types of Retirement Accounts
Maximize your tax advantages with the right savings vehicles:
401(k) / 403(b):
- Pre-tax contributions reduce current income
- Tax-deferred growth
- Employer matching (free money!)
- Taxed at withdrawal
Traditional IRA:
- Tax-deductible contributions (income limits may apply)
- Tax-deferred growth
- Taxed at withdrawal
Roth IRA / Roth 401(k):
- After-tax contributions
- Tax-free growth and withdrawals
- No required minimum distributions (Roth IRA)
Always maximize employer matching first.
Withdrawal Strategies
Withdrawing your money efficiently is as important as saving it:
Optimal withdrawal order: 1. Taxable accounts first (capital gains taxed at lower rates) 2. Tax-deferred accounts next (401k, Traditional IRA) 3. Tax-free accounts last (Roth IRA)
Important considerations:
- Required Minimum Distributions start at age 73
- Withdraw strategically to minimize taxes
- Consider Roth conversions in low-income years
- Balance current and future needs
Social Security Benefits
Don't rely solely on Social Security, but integrate it into your plan:
Key facts:
- Full benefit at Full Retirement Age (66-67 depending on birth year)
- Available as early as 62 (reduced by up to 30%)
- Can be delayed until 70 (increased by 8% per year)
- Delaying from 67 to 70 increases benefit by ~24%
Break-even point is typically around age 80-82. If you're healthy and have other income, delaying is often beneficial.
The Impact of Inflation
Inflation is the silent enemy of retirement. What costs $50,000 today could cost:
- $67,000 in 10 years (3% inflation)
- $90,000 in 20 years
- $121,000 in 30 years
To maintain your purchasing power, your investments must grow faster than inflation. That's why we calculate 'real return' (return - inflation).
A 7% return with 3% inflation = 4% real return.
Common Mistakes to Avoid
Avoid these common pitfalls:
- Starting too late - every year counts thanks to compound interest
- Underestimating retirement duration - plan for 30+ years
- Ignoring inflation - costs will likely double
- Being too conservative - a 100% bond portfolio may not keep up with inflation
- Overestimating returns - use realistic assumptions (5-7% before inflation)
- Forgetting healthcare - costs increase with age
- Not diversifying - spread risk across asset classes
- Claiming Social Security too early - calculate if delaying is worth it