How to Use the Retirement Calculator

Our retirement calculator is designed to help you understand how your retirement savings might last through your golden years. By exploring different scenarios, you can make informed decisions about Social Security claiming strategies and withdrawal rates.

Begin by entering your current retirement savings and desired monthly income in the "Your Money" section at the top of the calculator.

1. Starting Balance:

   Enter your current total retirement savings across all accounts (401(k), IRA, etc.).

2. Monthly Income Goal:

   Enter how much monthly income you'd like to have in retirement.

The Balance Projection chart shows how your retirement savings may change over time based on three different Social Security claiming scenarios:

1. Age 62:

   Claiming Social Security early (reduced benefits).

2. FRA (Full Retirement Age):

   Claiming at your full retirement age (typically 66-67 for most people).

3. Age 70:

   Delayed claiming (increased benefits).

You can toggle between viewing all scenarios at once or focusing on a single scenario using the buttons and switch above the chart. When lines in the chart reach zero, this indicates your savings would be depleted at that point in time.

Below the chart, you'll find a detailed year-by-year breakdown of your retirement finances for the selected scenario. This table shows:

1. Social Security Monthly Income:

   Your projected monthly benefit, increasing with cost-of-living adjustments.

2. 401(k) Monthly Withdrawal:

   How much you'll need to withdraw from savings to meet your income goal.

3. Total Monthly Income:

   Combined income from Social Security and retirement savings.

4. 401(k) Balance:

   Your remaining retirement savings at the end of each year.

5. Withdrawal Rate:

   The percentage of your savings you're withdrawing annually. The "4% rule" suggests keeping this under 4% for sustainability.

For more personalized projections, you can adjust the economic assumptions in the "The Economy" section:

1. Inflation Rate:

   The expected annual rate of price increases (defaults to 2.4%).

2. COLA Adjustment:

   Social Security's annual cost-of-living adjustment (defaults to 2.3%).

3. Investment Return:

   Expected annual return on your retirement investments (defaults to 8%).

In the "Social Security" section, you can customize your expected Social Security benefits:

1. Age 62 Benefit:

   Your estimated monthly benefit if claiming at age 62.

2. Full Retirement Age Benefit:

   Your estimated monthly benefit at your full retirement age.

3. Age 70 Benefit:

   Your estimated monthly benefit if delaying until age 70.

You can find your personalized benefit estimates by creating an account at ssa.gov. Use these figures for the most accurate projections.

When analyzing your retirement projections, pay attention to these key indicators:

1. Longevity of Your Savings:

   How long your money lasts across different scenarios.

2. Withdrawal Rates:

   Rates over 4% (marked with a warning icon) may not be sustainable long-term.

3. Social Security Impact:

   How different claiming ages affect your overall financial picture.

If your savings aren't lasting as long as you'd hope, consider adjusting your:

1. Monthly income goal (reducing expenses)
2. Social Security claiming strategy
3. Investment allocation to potentially increase returns (with added risk)
4. Working longer to increase savings before retirement