How Much Do You Need to Retire?
A common rule of thumb is to save 10-15x your annual salary by retirement age. But the right number depends on your lifestyle, location, healthcare costs, and when you plan to retire. Our calculator helps you project your savings based on your actual contribution rate, employer match, and expected investment returns.
The 4% Rule Explained
The 4% rule is a widely-used guideline for retirement withdrawals. It suggests you can withdraw 4% of your retirement savings in the first year and adjust for inflation each year after, with a high probability your money will last 30+ years. For example, a $1,000,000 portfolio would support roughly $40,000/year or $3,333/month in retirement income.
Understanding Employer Match
An employer match is essentially free money. A common employer match is 50% of your contributions up to 6% of your salary. If you earn $75,000 and contribute 6% ($4,500/year), your employer adds another $2,250/year. Not taking full advantage of employer matching is leaving money on the table.
401(k) Contribution Limits (2025)
- Under 50: $23,500 per year ($1,958/month)
- Age 50+: $31,000 per year with catch-up contributions
- Total limit (employee + employer): $70,000
Retirement Savings by Age (Benchmarks)
- Age 30: 1x your annual salary saved
- Age 40: 3x your annual salary saved
- Age 50: 6x your annual salary saved
- Age 60: 8x your annual salary saved
- Age 67: 10x your annual salary saved
Tips to Maximize Retirement Savings
- Always contribute enough to get the full employer match
- Increase contributions by 1% each year or with every raise
- Start early — compounding makes a massive difference over decades
- Consider a Roth 401(k) or Roth IRA for tax-free withdrawals in retirement
- Keep investment fees low — index funds typically charge 0.03-0.20%
- Don't withdraw early — penalties and lost growth compound the damage
Use this calculator alongside our Compound Interest Calculator to explore different scenarios, or check your Net Worth to see the full picture of your financial health.