Retirement Calculator

Retirement planning involves determining how much money you need to save to maintain your desired lifestyle after you stop working. Common guidelines include the 10% rule (save 10-15% of pre-tax income annually), the 80% rule (you need 70-80% of pre-retirement income in retirement), and the 4% rule (withdraw 4% of your nest egg annually).

Social Security benefits in the U.S. are designed to replace about 40% of the average worker's wages during retirement. However, relying solely on Social Security is generally not sufficient. Most retirees need a combination of Social Security, pension income, retirement account withdrawals, and personal savings.

Inflation is a critical factor in retirement planning. The average inflation rate of about 2.6% per year means the purchasing power of money decreases significantly over time. Retirement calculators account for inflation to provide more realistic projections of future needs and savings targets.