How This Estimate Is Calculated
This calculator is designed to provide a general estimate of how much you may need to save for retirement based on your income, target retirement age, and an assumed level of future spending. It uses widely accepted financial planning guidelines and incorporates the following assumptions:
Estimated retirement spending is based on a percentage of your current income, scaled for typical lifestyle adjustments at different income levels.
Social Security benefits are factored in as an offset to the total income need. Benefits are estimated based on your current income and desired retirement age, and do not reflect your actual earnings history.
Savings needed is calculated using the 4% rule — a research-based guideline suggesting that retirees can sustainably withdraw 4% of their portfolio annually over a 30-year retirement period. This rule is used here for simplicity and may not be appropriate for every situation.
Estimates assume a single individual with no pension or other income sources. Actual retirement income needs and Social Security benefits may vary based on personal circumstances, market returns, inflation, taxes, marital status, and changes to Social Security.
This tool is for educational purposes only and should not be considered personalized financial advice. For a retirement income plan tailored to your unique goals, please schedule a call with one of our advisors.
How Your Retirement Estimate Is Calculated
This calculator uses a simplified, research-informed model to help estimate how much you may need to have saved for retirement. Here's how we generate your results:
1. Estimated Retirement Spending
We estimate your retirement spending by applying a percentage to your current monthly income. This percentage reflects typical changes in lifestyle and spending after retirement, and varies by income level:
If your monthly income is $10,000 or less, we assume you'll need about 70% of your current income in retirement.
If your income is more than $10,000 per month, we assume you'll need about 60%.
This figure is multiplied by 12 to reflect your estimated annual retirement spending.
2. Estimated Social Security Benefit
Your estimated Social Security benefit is based on your current income and follows the general structure of the Social Security Administration's official formula, which replaces different portions of income at different rates.
The calculator breaks your monthly income into three tiers:
The first portion of income (up to ~$1,115/month) is replaced at 90%.
The next portion (from ~$1,116 to ~$7,836/month) is replaced at 32%.
Any remaining income above ~$7,836/month is replaced at 15%, up to the benefit cap.
This approach provides a reasonable estimate of your monthly Social Security benefit at full retirement age. If you enter a retirement age before or after full retirement age, we adjust the benefit accordingly:
Retiring early (e.g. at age 62) results in a reduction.
Delaying retirement (e.g. to age 70) results in an increase.
These adjustments are based on official Social Security rules.
3. Calculating the Gap
To determine how much you’ll need to withdraw from personal savings each year, we subtract your estimated annual Social Security income from your estimated annual retirement spending. This difference is your income gap—the amount that needs to be covered from your own savings.
4. Savings Required (Using the 4% Rule)
To estimate how much you need saved to cover that income gap, we use the 4% rule— a widely cited retirement planning guideline. It suggests that, in a typical 30-year retirement, you can safely withdraw about 4% of your portfolio each year.
We divide your annual income gap by 4% to calculate how much you may need to have saved.
📌 Important Note
This tool is designed to offer helpful estimates, not precise financial advice. It does not account for taxes, inflation, investment risk, or personal details such as pensions, spousal income, or health needs. Your actual retirement needs may differ, and we strongly recommend reviewing your plan with a qualified advisor.