Question 1

What savings rate do I need to retire at 65?

Accepted Answer

Starting at age 30 with no current savings, a 15% savings rate on the median income of $62,000 ($775/month) at a 7% real return allows retirement at approximately age 65 with a 25x savings multiple (the 4% rule portfolio). Starting earlier reduces the required rate: at 25, the same target requires only 10-11%. Starting later requires significantly higher rates — at 40, reaching the same retirement age requires 25-30% savings rates.

Question 2

What does the 4% rule mean for retirement planning?

Accepted Answer

The 4% rule (Bengen 1994, Trinity Study) states that withdrawing 4% of your portfolio annually in the first year of retirement, then adjusting for inflation, has historically provided a 95%+ probability of your portfolio lasting 30 years. To retire comfortably, you generally need 25 times your annual retirement expenses saved (1/0.04 = 25). This calculator uses the 4% rule as the primary benchmark while also showing 3% and 3.5% withdrawal scenarios for more conservative planning.

Question 3

Does this calculator include Social Security?

Accepted Answer

Yes. You can enter your estimated Social Security benefit (or let the calculator estimate it from your income using SSA benefit formulas), and specify the age at which you plan to claim. Claiming at 62 provides 70% of full benefit; claiming at 70 provides 124% of full benefit. Social Security income can meaningfully reduce the portfolio size you need and pull your retirement date earlier.

Question 4

What return rate does the calculator assume?

Accepted Answer

The default is 7% nominal annual return (approximately 5% after 2% inflation), consistent with long-run US stock market returns net of inflation. You can adjust this from 4% to 10% to model conservative, moderate, or optimistic scenarios. The Monte Carlo analysis in the advanced tab runs 500 simulations with variable returns to show the probability distribution of retirement dates and portfolio outcomes.

Question 5

What if I already have savings — does the calculator account for them?

Accepted Answer

Yes. Enter your current savings balance and the calculator compounds it forward from today alongside your new contributions. Existing savings often have a larger impact on retirement date than new contributions for mid-career savers because they have longer to compound. For example, $100,000 already saved at 40 with 7% returns becomes approximately $386,000 by age 60 with no additional contributions.

When Can You Retire If You Start Saving Today?