How much do I need to retire?

The most common rule is 25x your annual expenses (the "4% rule" — withdraw 4% per year and your portfolio lasts 30+ years). If you spend $60,000/year, you need $1.5M. Adjust up if you retire early, down if you expect significant Social Security income.

What is a realistic return rate for retirement savings?

A diversified stock/bond portfolio historically returns 6-7% annually after inflation. Use 5-6% for conservative planning, 7% for moderate, 8% for aggressive. Higher returns require more stock allocation and stomach for volatility.

The 4% rule says you can withdraw 4% of your portfolio in year one of retirement, adjust for inflation each year, and not run out of money for 30 years. It's based on historical market returns and is widely used as a starting point, though some planners now recommend 3-3.5% for longer retirements.

How much should I save for retirement each month?

A common guideline is 15% of gross income including any employer match. Start with enough to get your full 401k match (free money), then max your IRA ($7,000 in 2026, $8,000 if 50+), then return to the 401k up to the $23,500 limit.

What is the 2026 401k contribution limit?

The 2026 401k contribution limit is $23,500 for employees under 50, and $31,000 for those 50 and older (the additional $7,500 is the catch-up contribution). The IRA limit is $7,000 ($8,000 with catch-up).

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Quick answer

Target nest egg: 25x your annual expenses (4% rule)
Save: 15% of gross income including employer match
Return assumption: 7% nominal (historical diversified portfolio)
2026 limits: 401k $23,500 · IRA $7,000 (catch-up +$7,500 / +$1,000)

Current age

yrs

Retirement age

yrs

Current savings

Expected annual return

Inflation rate

Monthly contribution

Projected balance

$1.19M

at age 65

Inflation-adjusted value

$422.3K

in today's dollars

Annual income (4% rule)

$47,527

per year from savings

Social Security tip: Add your estimated Social Security benefit to your annual income above. Check your estimate at ssa.gov/myaccount.

Decade-by-decade growth

How your portfolio builds over time

Age	Balance	Contributions	Investment growth
40	$136,784	$85,000	+$51,784
50	$361,432	$145,000	+$216,432
60	$812,898	$205,000	+$607,898
65	$1,188,181	$235,000	+$953,181

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Which retirement strategy fits you?

If you are under 40 with no retirement savings

Start immediately, even $100/month. Time in market beats amount — a 25-year-old saving $200/month at 7% ends up with more than a 35-year-old saving $400/month.

If you have a 401k with employer match

Contribute at least enough to get the full match before anything else — it is an instant 50-100% return. That free money is the single highest-ROI financial move available to you.

If you are 50+ and behind

Use catch-up contributions: $7,500 extra in your 401k ($31,000 total), $1,000 extra in your IRA ($8,000 total). You have a decade or more to compound significantly.

If you are wondering Roth vs. Traditional

Roth wins if you expect to be in a higher tax bracket in retirement (common for younger, lower-income earners). Traditional wins if you are in a high bracket now. When unsure, split contributions.

Frequently asked questions

Methodology

Projections use monthly compound interest on the expected annual return rate. The inflation-adjusted value discounts the nominal balance by the inflation rate over the accumulation period. The 4% rule (annual withdrawal = 4% of portfolio) is used to estimate sustainable retirement income. Social Security income is excluded from all calculations.

Contribution limits reflect IRS 2026 figures: 401k employee deferral $23,500 (50+: $31,000), IRA $7,000 (50+: $8,000). Return assumptions: conservative 5-6%, moderate 7%, aggressive 8%. Inflation default 3% (Fed long-run target).

Updated June 18, 2026.