Retirement Savings Calculator
Find out if you're on track for retirement. Enter your current savings, contributions, and goals to see a year-by-year projection.
To calculate how much you need for retirement, estimate your desired annual retirement income, subtract expected Social Security benefits, and multiply the gap by 25 (the inverse of the 4% safe withdrawal rate from the Trinity Study). For example, if you need $60,000/year and expect $22,000 from Social Security, you need approximately $950,000 in retirement savings, adjusted for inflation.
Why might my retirement projection differ from reality?
Retirement projections are models, not guarantees. The most common reasons your real outcome will differ from the headline number:
- Sequence-of-returns risk. Two retirees with the same 30-year average return can have very different outcomes if one hits a bad decade early. The Monte Carlo below shows this range — pay attention to the pessimistic (p10) scenario, not just the median.
- Healthcare costs are usually underestimated. If you retire before 65, ACA marketplace plans run $900-1,800/month for ages 55-64. After 65, Medicare Part B alone is $2,257/year per person plus Medigap ($1,500-3,000/year) and IRMAA surcharges for higher incomes.
- Inflation isn't 3% every year. 2021-2023 averaged 5.4%. A 2% inflation surprise over 30 years cuts purchasing power by 45%. The default 3% assumption is a long-run historical average, not a guarantee.
- Social Security may be reduced. Per SSA Trustees' 2024 report, the trust fund is projected to be depleted in 2034. Without congressional action, benefits would be cut to ~77% of scheduled. Many planners model 75-100% scenarios; the default here assumes 100%.
- Required Minimum Distributions (RMDs). Starting at age 73 (75 if you're born 1960+), the IRS forces you to withdraw a percentage of your Traditional accounts each year, regardless of whether you need the income. This pushes you into higher tax brackets and can make 85% of your Social Security taxable.
- Long-term care. 70% of Americans 65+ will need some long-term care. Average cost: $80,000-$110,000/year for a nursing home. This calculator does NOT model LTC — if you're concerned, add a $200K-$400K reserve to your target.
- Investment fees. A 1% expense ratio over a 40-year career consumes about 28% of your final balance. The default 7% nominal return assumes ~0.10% expense ratios (index funds). If you pay an advisor 1% + fund fees, your effective return is closer to 5.5%.
- Tax law will change. The 2026 federal brackets in this calculator are the post-OBBBA (made permanent) values. But IRMAA thresholds, SS taxability formulas, and standard deductions are all subject to change.
- State retirement tax varies enormously. This calculator models federal tax only. Some states (FL, TX, NV, WA, TN, etc.) tax no retirement income; others (CA, NY, MN, VT) tax fully. Subtract 4-9% of your projected withdrawals if you're in a tax-heavy state.
- Lifestyle inflation. Most retirees spend 70-80% of pre-retirement income initially, drop to 60-70% in middle retirement (ages 75-85), then face higher costs at end of life. Constant inflation-adjusted spending is a simplification.
For a personalized stress test, consult a fiduciary CFP. This calculator is for educational planning only and does not constitute financial advice.
Enter Your Details
Advanced inputs — add Roth, pension, SS claim age, MFJ, healthcare (optional, all default to sensible values)
Account types
Income sources & timing
Healthcare bridge (only if retiring before 65)
Engine uses 2026 IRS federal brackets (Rev. Proc. 2025-32), SS taxability rules per IRC §86, RMDs starting at age 73 per SECURE Act 2.0, and ACA marketplace rates for pre-Medicare healthcare. Monte Carlo runs 500 trials with historical S&P 500 volatility.
Monte Carlo: How does luck affect your outcome?
500 simulated market trials (μ=6% real, σ=11% — historical 60/40 portfolio). Shows the range of possible final balances and average real income, in today's dollars.
Retirement Decision Support System
Showing national median scenarios — click Calculate above to personalize with your numbers
How Much Do You Need to Retire?
DIRECT ANSWERThe short answer: Most Americans need 25 times their expected annual retirement spending, minus what Social Security will cover. If you want to spend $60,000/year in retirement and expect $22,000 annually from Social Security, you need approximately $950,000 saved by retirement age.
This follows the 4% safe withdrawal rule from the Trinity Study (Cooley, Hubbard & Walz, 1998): a portfolio of 50-75% stocks has a 95%+ probability of lasting 30 years if you withdraw no more than 4% in the first year, adjusted for inflation thereafter.
A 35-year-old earning the median US household income ($78,000) who saves $1,000/month at 7% annual return will have approximately $1.22 million at age 65 — enough for roughly $48,800/year in withdrawals, plus Social Security.
Retirement Readiness Benchmarks
LIVE DATA fincalcs.coSource: Federal Reserve SCF, Fidelity, IRS 2026
How Do Your Savings Compare?
FEDERAL RESERVE DATAMedian and 75th-percentile retirement account balances by age bracket, from the Federal Reserve Survey of Consumer Finances (SCF) 2022. This is the most authoritative dataset on American household wealth, published every three years.
| Age Bracket | Median Balance | 75th Percentile | Mean (Average) | Your Peer Status |
|---|---|---|---|---|
| Under 35 | $18,880 | $60,000 | $49,130 | — |
| 35–44 | $45,000 | $135,000 | $141,520 | Typical comparison |
| 45–54 | $115,000 | $310,000 | $313,220 | — |
| 55–64 | $185,000 | $540,000 | $537,560 | — |
| 65–74 | $200,000 | $609,000 | $609,230 | — |
| 75 and older | $130,000 | $462,000 | $462,410 | — |
Source: Federal Reserve Board, Survey of Consumer Finances (SCF), 2022 — published October 2023. Figures reflect retirement account balances only (401(k), IRA, Keogh); they exclude pensions, Social Security, and taxable brokerage accounts.
The reality: Mean balances are 3-5x higher than medians because a small number of high-savers pull the average up. The median is the more honest benchmark for "what people actually have."
What The Numbers Actually Mean
Starting at 25 vs 35 more than doubles your balance. Saving $500/month from age 25 at 7% return gives you $1,237,000 at 65. Starting the same amount at age 35 gives you just $566,000 — a $671,000 penalty for a 10-year delay.
Your employer match is a 100% instant return. If your company matches 50% of the first 6% you contribute on a $75,000 salary, that's $2,250/year free. Over 30 years at 7%, that match alone compounds to $226,500 — before counting your own contributions.
Inflation quietly halves your money every 24 years. At 3% annual inflation, $60,000 today buys what $25,100 would have bought in 1994. Your retirement target must grow with inflation — a $1M goal in today's dollars becomes $2.43M by 2056 if you're 35 now.
The "1% more" rule has outsized leverage. A 35-year-old earning $85,000 who increases their 401(k) from 6% to 7% adds just $71/month to contributions. Over 30 years at 7%, that extra 1% compounds to $87,400 more at retirement — roughly 2 years of retirement spending.
Delaying Social Security to 70 boosts your benefit by 24%. If your full retirement age benefit (67) is $2,400/month, claiming at 62 drops it to $1,680 (30% cut). Waiting until 70 raises it to $2,976 — a difference of $15,552/year for life, inflation-adjusted.
Which Variable Has the Biggest Impact?
SENSITIVITYStarting baseline: 35 years old, $85,000 current savings, $1,000/month contribution, 7% return, retiring at 65. Projected balance: $1,220,000. The table below shows how each variable changes the outcome in isolation.
| Variable Changed | Down Scenario | Baseline | Up Scenario | Leverage Rating |
|---|---|---|---|---|
| Start age | Age 45 (10 yrs late) $484,000 −60% |
Age 35 $1,220,000 |
Age 25 (10 yrs early) $2,567,000 +110% |
EXTREME Time is the #1 lever |
| Monthly contribution | $500/mo $736,000 −40% |
$1,000/mo $1,220,000 |
$2,000/mo $2,188,000 +79% |
HIGH Linear with contribution |
| Annual return | 5% return $868,000 −29% |
7% return $1,220,000 |
9% return $1,743,000 +43% |
HIGH Compounds exponentially |
| Retirement age | Retire at 60 $805,000 −34% |
Retire at 65 $1,220,000 |
Retire at 70 $1,810,000 +48% |
HIGH 5 more years = 48% |
| Inflation rate | 2% inflation Target: $1,088K Easier |
3% inflation Target: $1,457K |
4% inflation Target: $1,946K Harder |
HIGH Affects target, not balance |
Key insight: Starting age has 3x the leverage of any other variable. If you're under 40, time in market is more valuable than rate of return or contribution size. After 50, contributions and retirement age become the dominant levers.
2026 Retirement Contribution Limits
IRS PUBLISHED| Account Type | Under 50 | 50 and Over (Catch-Up) | Tax Treatment |
|---|---|---|---|
| 401(k) / 403(b) / 457(b) | $23,500 | $31,000 ($7,500 catch-up) | Traditional: tax-deferred Roth: tax-free growth |
| Traditional / Roth IRA | $7,000 | $8,000 ($1,000 catch-up) | Traditional: deduction now Roth: tax-free later |
| SIMPLE IRA | $16,500 | $20,000 ($3,500 catch-up) | Tax-deferred |
| SEP-IRA (self-employed) | 25% of comp, max $70,000 | Same (no catch-up) | Tax-deferred |
| HSA (if eligible) | $4,300 self / $8,550 family | +$1,000 catch-up at 55 | Triple tax advantage |
Source: Internal Revenue Service, 2026 contribution limits announcement. Note on SECURE 2.0: Workers aged 60-63 can use enhanced catch-up of $11,250 in 401(k) plans (up from $7,500) — check if your plan supports this.
The Math Behind This Calculator
TRANSPARENT1. Future Value of Contributions (Accumulation Phase)
FV = P(1+r)n + PMT × [((1+r)n − 1) / r]
Where P = current balance, r = annual return rate, n = years until retirement, PMT = annual contribution. Each year's balance grows by the return rate and receives 12 monthly contributions.
2. Retirement Target (4% Safe Withdrawal Rule)
Target = (Annual Spending − Annual Social Security) × 25
The 4% rule comes from the Trinity Study (Cooley, Hubbard & Walz, 1998), which simulated 30-year retirement withdrawals across historical market data from 1926-1995. A 50-75% stock portfolio withdrawing 4% (inflation-adjusted) had a 95-98% success rate over 30 years. Multiplying annual spending by 25 inverts this: 1 / 0.04 = 25.
3. Inflation Adjustment
Future Spending Need = Today's Spending × (1 + inflation)years
Both the retirement target and annual Social Security are inflated forward to the year of retirement. Default inflation is 3%, the approximate long-run US CPI average since 1926.
4. Withdrawal Phase Duration
Balanceyear n = Balancen-1 × (1 + 4% return) − Inflation-Adjusted Withdrawal
In retirement, we model a conservative 4% portfolio return (reflecting a bond-heavier retirement allocation) and subtract inflation-adjusted withdrawals until the balance reaches zero or 40 years elapse.
Your Complete Retirement Picture
CONNECTEDRetirement planning connects to six other calculations. Here's how each one changes your trajectory.
Retirement Readiness Matrix
Five factors that determine whether you're on track. Default scenario: 35-year-old, $85K saved, $1K/month contribution.
| Factor | Status | Your Number | What To Do |
|---|---|---|---|
| Savings vs age benchmark | On track |
$85K at age 35 | Median for age 35-44 is $45K. You're above median but below the 1.5x-salary benchmark (~$120K). |
| Contribution rate | Could increase |
$12,000/year | That's ~15% of a $78K income — good, but the 2026 401(k) limit is $23,500. Optimize your 401(k) |
| Employer match captured | Verify |
Check your plan | If your employer matches 50% of the first 6%, you need to contribute at least 6% to capture the full match. Anything less is leaving free money. |
| Asset allocation | Age-appropriate |
Rule of 110 | At 35, a common guideline is 110 − 35 = 75% stocks / 25% bonds. Target-date 2055 funds automatically glide this. |
| Social Security claim age | Decision deferred |
Age 67 (FRA) | Claim at 62 for 30% less, 67 for full, 70 for 24% more. Decision made in your 60s, not now. |
The matrix updates to your actual numbers once you click Calculate above.
Five Retirement Mistakes With Their Dollar Costs
| The Mistake | What It Actually Costs |
|---|---|
| Cashing out a 401(k) when you change jobs Taking $10K instead of rolling it over at age 30 | $76,000 lost Plus 10% penalty + income tax = $3,000 immediate. $10K at 7% for 35 years would have been $107,000. |
| Not capturing the employer match Contributing 3% when employer matches up to 6% | $108,000 lost On a $75K salary, missing 3% match = $2,250/yr forfeited. Over 30 years at 7%, compounds to $227K. |
| Paying 1% more in investment fees Actively managed fund vs index fund | $240,000 lost On a $500K portfolio over 20 years, 1.1% vs 0.1% fees = 20% less final balance. Vanguard study, 2022. |
| Claiming Social Security at 62 instead of 67 Taking reduced benefit too early | $180,000+ lost (lifetime) 30% permanent reduction. For a $2,400 FRA benefit, that's $720/mo forfeited — over 25 years of retirement, $216K in nominal terms. |
| Underestimating healthcare costs Not budgeting for Medicare premiums and out-of-pocket | $165,000 gap Fidelity estimates a 65-year-old couple retiring today will spend $165K on healthcare in retirement, excluding long-term care. |
Sources: Vanguard Investor Advisor Alpha Study (2022), Fidelity Retiree Health Care Cost Estimate (2023), SSA Benefit Calculator, IRS early withdrawal rules.
What Should You Do Next?
UPDATES LIVEThree highest-leverage actions for a typical 35-year-old starting from median savings.
→ Run the 401(k) numbers
→ Compare Roth vs Traditional
→ Build a savings goal
People Also Calculated
Quick Reference: The Six Numbers Every Retirement Plan Needs
Before you optimize anything, you need to know these six numbers. The calculator above gives you most of them; this card explains what they mean and how to compare them to your actual situation.
How to Use This Calculator
The default inputs model a typical 35-year-old earning the US median household income. To get a personalized estimate, replace these defaults in three steps.
Step 1 — Fill in the basics (required)
Current Age + Retirement Age set the accumulation window. Every additional year of contributions roughly doubles your odds of meeting your target, because compound returns work exponentially. A 25-year-old who saves $300/mo will end up with more than a 45-year-old saving $1,000/mo at the same return.
Current Retirement Savings is everything currently invested for retirement: 401(k), IRA, Roth, HSA invested portion, taxable brokerage earmarked for retirement. Do NOT include emergency fund, checking balance, or your home equity (your house can't fund retirement unless you sell or borrow against it, and both have major drawbacks).
Monthly Contribution is what you (or you + employer) put in each month. If you contribute 10% of $80,000 salary = $666/mo, and your employer matches 4% = $266/mo, enter $932 here.
Expected Return is the long-run annualized return on your portfolio. A 100% stock portfolio has averaged ~10% nominal / ~7% real since 1928. A 60/40 stock/bond portfolio averages ~8% nominal / ~5% real. If you don't know, use 7% (the calculator's default) and check what happens at 5% as a stress test.
Desired Annual Retirement Income is what you want to spend each year in retirement, in today's dollars. The calculator inflates this to retirement-year dollars internally. Most retirees spend 70–80% of pre-retirement income initially.
Expected Social Security is your projected monthly benefit at Full Retirement Age (67 for anyone born 1960 or later). Get the actual number from ssa.gov/myaccount — it's free and accurate.
Inflation Rate defaults to 3% (long-run US average). Recent years (2021–2023) averaged 5.4%, so if you want a conservative plan, try 3.5% and see how the projection changes.
Step 2 — Open Advanced inputs for accuracy
The basics treat all your savings as one bucket. Advanced inputs let the engine model the three account types separately, which matters because they're taxed differently in retirement.
Traditional vs Roth vs Taxable balance: Traditional 401(k)/IRA balances are taxed as ordinary income when you withdraw. Roth balances come out tax-free. Taxable brokerage balances incur 15% long-term capital gains tax on the gains portion only. Splitting your $200K savings into $150K Trad + $50K Roth produces a different (usually better) after-tax outcome than $200K all Trad.
SS Claim Age has huge consequences. Claiming at 62 reduces your benefit to 70% of FRA permanently. Claiming at 70 increases it to 124% permanently. The breakeven age is ~80–82; if your family history suggests longer life expectancy, delaying to 70 usually wins by hundreds of thousands of dollars over a 30-year retirement. Run your personal breakeven analysis →
Pension if you have one (rare for private-sector workers under 55). Treated as ordinary income, inflation-adjusted.
Filing Status in retirement matters because MFJ brackets are roughly double single brackets, and standard deductions differ ($16,100 single / $32,200 MFJ in 2026).
Life Expectancy defaults to 92. SSA actuarial tables suggest current 65-year-olds have a 50% chance of reaching 87 (men) or 89 (women); plan to 90+ unless your family history is unusually short.
Pre-Medicare healthcare only matters if you retire before 65. The default ($900/mo single / $1,800/mo couple) reflects unsubsidized ACA marketplace rates for a 60-year-old in 2026. If you'll qualify for subsidies (MAGI under ~$103K), reduce by 50–80%.
Step 3 — Read the results carefully
The headline number ($X projected at retirement) is the most optimistic single value — it assumes your specified return rate happens every year with no volatility. The Monte Carlo bands below it show what really happens when markets fluctuate: the p10 (pessimistic) line is what your nest egg looks like if you have bad luck. Pay attention to that number, not just the median.
The Readiness Score combines five factors: how well-funded your plan is, how often Monte Carlo simulates a successful retirement, your savings rate, how diversified your accounts are (Trad/Roth/Taxable mix), and how much time you have. A score of 85+ means you have substantial buffer; 70–84 means minor optimizations could help; below 70 means meaningful gaps need work.
The Monte Carlo success rate is the % of 500 simulated futures where your money lasts to life expectancy. Above 80% is solid. 60–80% is OK but exposes you to sequence-of-returns risk. Below 60% means you're betting on above-average market performance to make the plan work.
Retirement Savings Benchmarks by Age (Federal Reserve SCF + Fidelity)
These benchmarks come from two authoritative sources: the Federal Reserve's Survey of Consumer Finances (median actual balances of American households) and Fidelity's research-based recommendations (what you should have to retire at 67 on a 15% savings rate). The gap between them is large — most Americans are not on track.
| Age | SCF Median (Reality) | Fidelity Recommended (Target) | Gap |
|---|---|---|---|
| 30 (1× salary) | $18,880 | $60,000 | −$41,120 |
| 40 (3× salary) | $45,000 | $210,000 | −$165,000 |
| 50 (6× salary) | $115,000 | $420,000 | −$305,000 |
| 60 (8× salary) | $185,000 | $560,000 | −$375,000 |
| 67 (10× salary at retirement) | $200,000 | $700,000+ | −$500,000+ |
How to read this: Fidelity's targets assume a $70K household income and Social Security covering 40% of pre-retirement income. Higher earners need more (because SS replaces a smaller share of higher incomes); lower earners need less. If you earn $120K, multiply the targets by 1.7×. If you earn $50K, multiply by 0.7×.
The catch-up math is brutal but doable. A 40-year-old who is $165K behind the Fidelity target needs to save an extra ~$700/month for the next 25 years (at 7% return) to close the gap by 67. That's on top of their existing contribution. Most catch-up plans require either dramatically increased savings, working longer, or accepting a lower retirement income.
The 4% Rule: What It Is, When It Works, When It Breaks
The "4% rule" is the most cited retirement guideline and the most misunderstood. It comes from the 1998 Trinity Study (Cooley, Hubbard & Walz, Trinity University), which tested historical US market returns from 1926–1995 to find a withdrawal rate that survived 30 years across all historical sequences.
What the rule actually says: Withdraw 4% of your portfolio in year one. Adjust that dollar amount upward each year for inflation. With a 50–75% stock allocation, this gave you a >95% historical success rate over rolling 30-year periods. The "4% rule" was never about a 4% return — it's about withdrawing 4% of starting principal.
When the 4% rule works well
- 30-year retirement horizon. The original study tested 30 years. Below that, you can safely withdraw more. Above that, you should withdraw less.
- Diversified portfolio with 50%+ stocks. A 100% bond portfolio fails the 4% rule about 30% of the time historically.
- Willingness to make adjustments. Real retirees don't withdraw on autopilot — they cut spending in bad years.
When the 4% rule breaks
- Early retirement (40+ years). For a 30-year retirement, 4% works. For 50 years (FIRE retiree at 45), the safe rate drops to 3.3% according to Big ERN's safe withdrawal series. That requires 30× spending saved, not 25×.
- Sequence-of-returns risk in year 1–10. If markets crash in your first decade of retirement, the 4% rule fails about 15% of the time. The Monte Carlo simulation above stress-tests this.
- High fees. If you pay 1%/year in advisor fees and fund expenses, your safe rate is closer to 3.3%, not 4%. Fees compound destructively in retirement.
- Persistently low expected returns. Some researchers (Wade Pfau, Michael Kitces) argue current valuations and low bond yields justify a starting rate of 3.3–3.5% for new retirees today.
Better alternatives if 4% feels rigid
Guyton-Klinger Guard Rails (5–5.5% starting rate). Set an initial rate of 5%, then apply rules: skip the inflation adjustment in years when your withdrawal rate drifts above 6%, and increase by an extra 10% in years when it drifts below 4%. Historical success rate: ~99% over 30 years.
Variable Percentage Withdrawal (VPW). Withdraw a fixed percentage of your current balance each year (e.g., 5% of whatever you have). Your spending fluctuates with markets, but you can never run out of money. Best for retirees with flexible spending.
The Bond Tent. Hold extra bonds (e.g., 70% bonds) in years 1–5 of retirement, then gradually shift back toward equities. This reduces sequence-of-returns risk in the most vulnerable period.
Social Security: When to Claim
This is one of the few financial decisions where the math is unambiguous, but the answer depends entirely on your life expectancy and current cash needs.
| Claim Age | Benefit (% of FRA) | Lifetime Benefit if you live to… | Best for |
|---|---|---|---|
| 62 (earliest) | 70% of FRA | 75: highest. 80+: lowest. | Poor health, no savings, immediate need |
| 65 | 86.7% of FRA | 80–82: roughly equal to FRA claim | Coincides with Medicare eligibility |
| 67 (Full Retirement Age) | 100% of FRA | 82–85: better than claiming early | Default for most people, average life expectancy |
| 70 (maximum) | 124% of FRA | 85+: highest. Family history of longevity: 80+. | Healthy, long-lived families, has bridge funds |
Breakeven analysis: Compared to claiming at 62, delaying to 70 pays back the foregone benefits if you live past age 80–82 (depending on inflation and discount rate assumptions). Compared to claiming at FRA (67), delaying to 70 pays back if you live past 81. Both are reasonable bets given current 65-year-old life expectancies of 84–86 (per SSA actuarial tables). For your specific birth year and earnings record, use our Social Security Claim Age Optimizer to see the breakeven for your situation.
For married couples, the higher earner should usually delay to 70. When one spouse dies, the surviving spouse can claim the higher of the two benefits — effectively making delayed-claim a survivor insurance policy. If the lower earner predeceases first, no harm done; if the higher earner predeceases first, the survivor gets a much larger benefit for life.
Trust fund warning: Per the SSA Trustees' 2024 annual report, the OASI (retirement) trust fund is projected to be depleted in 2034. Without congressional action, scheduled benefits would be cut to about 77% of current promises. Most planners model 75–100% scenarios; this calculator assumes 100% for simplicity. To stress-test, reduce your "Expected Social Security" input by 25%.
Healthcare: The Retirement Expense Most Calculators Get Wrong
Fidelity's annual Retirement Healthcare Cost Estimate (2024) puts lifetime out-of-pocket healthcare costs at $165,000 per person (in today's dollars) over a 20-year retirement. That doesn't include long-term care. Here's how that breaks down by age band.
Ages 55–64 (Pre-Medicare)
This is the gap that destroys early-retirement plans. You're not yet Medicare-eligible, but you've left employer coverage. Options:
- ACA Marketplace. Premium for a 60-year-old in 2026: ~$900/mo unsubsidized (silver plan, no preexisting conditions). For a couple: ~$1,800/mo. ACA subsidies phase out around $103K MAGI for single, $138K MFJ.
- COBRA. 18 months of your employer plan at full cost (~$700–$1,200/mo). Useful as a short bridge.
- Spouse's plan. If your spouse is still working, this is usually cheapest.
- Healthcare Sharing Ministries. Cheaper but not insurance — no guaranteed payouts, religious requirements. Risky.
Ages 65+ (Medicare era)
Medicare Part A is free if you've worked 40 quarters. Part B (outpatient + doctors) is $188.10/month base premium for 2026 ($2,257/year per person). Most retirees also need:
- Part D (prescription drugs): ~$35/mo average, or $420/year.
- Medigap or Medicare Advantage: Plan G Medigap runs $150–$300/month depending on state and age; total $1,800–$3,600/year. Medicare Advantage plans are often $0 premium but have network and prior-auth limitations.
- Dental + vision: Not covered by Original Medicare. Budget $1,200–$2,000/year out of pocket or through a Medicare Advantage plan that includes them.
IRMAA — Income-Related Monthly Adjustment Amount
If your modified AGI exceeds certain thresholds, your Medicare Part B and Part D premiums increase. 2026 thresholds (based on 2024 MAGI):
- Up to $106K single / $212K MFJ: standard premium ($188.10/mo)
- $106K–$133K single / $212K–$266K MFJ: +$74.20/mo
- $167K–$200K single / $334K–$400K MFJ: +$334.20/mo
- Over $400K single / $750K MFJ: +$444.90/mo (plus Part D surcharge)
This means high-income retirees can pay $7,000–$10,000/year just for Medicare. Roth conversions in your 60s before claiming SS can reduce future IRMAA exposure.
Long-Term Care — the wildcard
About 70% of Americans 65+ will need some long-term care; about 20% will need it for more than 5 years (HHS Administration on Community Living). Median 2024 costs (Genworth Cost of Care Survey):
- Home health aide (44 hr/wk): $75,500/year
- Assisted living facility: $64,200/year
- Semi-private nursing home room: $104,000/year
- Private nursing home room: $116,800/year
Three strategies:
- Self-insure with a reserve. Set aside $200K–$400K in a separate bucket. This calculator doesn't model that — add it manually to your target.
- Traditional LTC insurance. Buy at 55–60 when rates are reasonable (~$2,500/yr for a 55-year-old). Premiums can rise; insurers can go bankrupt; benefits often don't keep up with inflation.
- Hybrid life/LTC insurance. Single-premium products that pay either a death benefit or LTC benefits depending on what happens. More expensive upfront but premiums are guaranteed.
Retirement Account Types and Tax Treatment
The order in which you withdraw matters as much as the total amount saved. A diversified mix of tax-deferred, tax-free, and taxable accounts gives you control over your taxable income each year in retirement — letting you stay in lower brackets and manage IRMAA exposure.
| Account Type | 2026 Limit | Tax on Contributions | Tax on Withdrawals |
|---|---|---|---|
| Traditional 401(k) / 403(b) | $24,000 ($31,500 if 50+) | Pre-tax (deductible) | Ordinary income |
| Roth 401(k) / 403(b) | $24,000 ($31,500 if 50+) | After-tax | Tax-free |
| Traditional IRA | $7,500 ($8,500 if 50+) | Pre-tax (deductible if MAGI under limit) | Ordinary income |
| Roth IRA | $7,500 ($8,500 if 50+) | After-tax (income limits apply) | Tax-free |
| HSA | $4,400 single / $8,750 family | Pre-tax (triple-advantaged) | Tax-free for medical; ordinary income otherwise after 65 |
| Taxable brokerage | None | After-tax | 15% LTCG on gains (0% if low income, 20% above $501K MFJ) |
Contribution priority (the standard waterfall)
- 401(k) up to employer match. Capture the full match — this is a 50–100% guaranteed return.
- HSA if eligible. Only triple-tax-advantaged account. Even $100/mo = $1,200/year pre-tax.
- Roth IRA up to $7,500 (if income allows). Tax-free growth for decades.
- Back to 401(k) up to limit. $24,000 total in 2026 ($31,500 with catch-up at 50+).
- Backdoor Roth IRA if your income exceeds direct Roth limits.
- Mega Backdoor Roth if your 401(k) allows after-tax contributions + in-plan conversion. Up to $70,000 total in 2026.
- Taxable brokerage for additional savings beyond tax-advantaged limits.
Withdrawal order in retirement (the standard waterfall reversed)
Most planners recommend: Taxable → Traditional → Roth. Pull from taxable first (only 15% LTCG vs. ordinary rates on Trad), let Trad keep growing tax-deferred, and save Roth for last when it can grow tax-free for the longest period and pass to heirs tax-free under SECURE Act rules.
The exception: If your taxable income is unusually low in early retirement (say, before SS kicks in), consider doing Roth conversions from Trad in those low-income years to fill up the 12% and 22% brackets. This trades ~$2K–$4K of current tax for the right to never pay tax on that money again — and reduces future RMDs.
Five Retirement Mistakes That Cost Six Figures
These are the five most expensive mistakes I see in retirement plans. Each one has a specific dollar cost over a 30-year retirement.
If your employer matches 5% of salary on a 5% contribution and you contribute only 3%, you're leaving 2% of salary on the table every year. On a $80,000 salary that's $1,600/year × 30 years × 7% return = $160,000 lost.
Fix: Log into your 401(k) plan today and set your contribution rate to capture the full match. (Use our 401(k) Calculator to see exactly what you're leaving behind.) This is the single highest-return investment available to most workers.
A 1% annual fee over a 40-year career consumes about 28% of your final balance. On a $1M projected nest egg, that's $280,000 lost to fees you didn't notice. Most index funds have expense ratios below 0.10%.
Fix: Check the expense ratios of every fund you own. Replace anything above 0.30% with an index alternative (VTI, VOO, VXUS, BND are typical replacements). For advisors, ask explicitly: "What is your total annual cost to me, including fund fees?" If the answer is above 0.75%, look for a fee-only fiduciary planner.
If your FRA benefit is $2,500/month and you claim at 62, you'll receive $1,750/month for life. If you wait until 70, you'll receive $3,100/month. Over a 30-year retirement (until 92), the difference is $486,000 in lifetime benefits.
Fix: Only claim early if you have poor health, no savings to bridge the gap, or genuine immediate need. Otherwise, delay at least to FRA and consider delaying to 70 if your family history suggests longevity. Calculate your breakeven →
Pulling $80,000 from a Traditional 401(k) at age 65 generates ~$12,000 in federal tax (assuming standard deduction, no other income). The same withdrawal at age 73 — after delaying SS, doing Roth conversions, and timing taxable account drawdowns first — could generate $0–$3,000 in tax. The compounding cost of bad withdrawal sequencing over 30 years: $80,000–$150,000 in unnecessary taxes.
Fix: Withdrawal order matters. Generally: taxable → Trad → Roth, with Roth conversions in the low-income years between retirement and RMDs starting at 73.
If you target $60,000/year in today's dollars and assume 2% inflation when reality delivers 3.5%, after 30 years you'll need $169,000/year instead of $109,000 to maintain the same purchasing power. That's $60,000/year of shortfall — about $1.5M of additional required savings.
Fix: Use the calculator's inflation rate input to stress-test at 3.5% and 4%, not just the historical 3% average. If your plan only works at 2% inflation, it doesn't really work.
Fix These Mistakes — Specific Tools That Help
Each tool below targets one of the five mistakes above. Free to use, no signup required.
Frequently Asked Questions
How much do I need to retire?
The standard rule is 25× your annual retirement spending, minus what Social Security and pensions will cover. If you'll spend $70,000/year and SS plus pensions cover $30,000, you need $1.0M saved (25 × $40,000). This is the "4% withdrawal rule" inverted — withdraw 4% of your nest egg in year one, adjusted for inflation thereafter, and a diversified portfolio has historically lasted 30 years more than 95% of the time. Early retirees need more (closer to 30× for 40-year horizons); retirees with substantial pensions need less.
Am I saving enough for retirement?
A standard rule is 15% of gross income (including employer match). Fidelity research finds that's the floor for replacing 80% of pre-retirement income at 67. If you're under 30, 10–12% may be enough because you have time. If you're over 45 and started late, you may need 20–25%. The calculator's Readiness Score above gives you a personalized assessment. As benchmarks: Fidelity recommends 1× salary saved by 30, 3× by 40, 6× by 50, 8× by 60, 10× by 67.
When should I claim Social Security?
If you expect to live past 82, delaying to 70 maximizes lifetime benefits. The breakeven age vs. claiming at 62 is about 80; vs. claiming at FRA (67) is about 81. Married couples should usually have the higher earner delay to 70 because of survivor benefits — if the higher earner dies first, the surviving spouse receives the larger benefit. Claim at 62 only if you have poor health, no savings to bridge the gap, or immediate financial need. Compare claim ages for your situation. Current 65-year-old life expectancies are 84 (men) and 86 (women), so most people benefit from delaying.
What's a safe withdrawal rate in retirement?
4% for a 30-year retirement with a 50–75% stock allocation, based on the Trinity Study (1998). For early retirees with 40+ year horizons, lower it to 3.3%. For more flexibility, use guard-rail strategies (Guyton-Klinger) that start at 5% but cut withdrawals in bad years. The Monte Carlo simulation above shows what happens at the calculator's projected withdrawal rate across 500 market scenarios — pay attention to the p10 (pessimistic) outcome, not just the median.
Should I contribute to Roth or Traditional?
Roth if you expect your tax bracket in retirement to be higher than today; Traditional if you expect it lower; a mix if you're unsure. Most workers in the 22% federal bracket or below benefit from Roth contributions in their working years. High earners in the 32%+ bracket usually benefit from Traditional contributions, then Roth conversions in early retirement when income is temporarily low. A diversified mix (40% Trad / 40% Roth / 20% taxable) gives you the most flexibility in retirement to manage your annual taxable income. The Roth IRA Calculator can project both scenarios side-by-side.
What if I'm behind on retirement savings?
Three levers, in order of impact: (1) work longer — each additional working year roughly doubles your odds of meeting your target, because you save more AND withdraw less; (2) save more aggressively — 50+ catch-up contributions add $7,500/yr to 401(k) limits and $1,000/yr to IRA limits; (3) cut target spending — every $1,000/year reduction in retirement spending reduces your required nest egg by $25,000. A 55-year-old with $200K saved is not doomed; working until 70 and saving 25% of income is a viable path to a $700K nest egg + maximum Social Security.