Moneko
Moneko

Retirement Calculator

Calculate your retirement savings needs with age-based strategies and catch-up contribution planning for financial independence.

Last Updated: September 7, 2025 | Reviewed by: Yifan Lim, CTO & Financial Systems Expert

Data Sources: IRS Retirement Plan Limits, Social Security Administration, Department of Labor

Retirement Calculator

/year
%/year
% of income
%/year
/year
% of income

Year-by-Year Projection

YearAgeStart BalanceContributionGrowthEnd Balance
035$30,000$7,000$1,800$38,800
136$38,800$7,000$2,328$48,128
237$48,128$7,000$2,888$58,016
338$58,016$7,000$3,481$68,497
439$68,497$7,000$4,110$79,606
540$79,606$7,000$4,776$91,383
641$91,383$7,000$5,483$103,866
742$103,866$7,000$6,232$117,098
843$117,098$7,000$7,026$131,124
944$131,124$7,000$7,867$145,991
1045$145,991$7,000$8,759$161,750
1146$161,750$7,000$9,705$178,455
1247$178,455$7,000$10,707$196,163
1348$196,163$7,000$11,770$214,933
1449$214,933$7,000$12,896$234,829
1550$234,829$7,000$14,090$255,918
1651$255,918$7,000$15,355$278,273
1752$278,273$7,000$16,696$301,970
1853$301,970$7,000$18,118$327,088
1954$327,088$7,000$19,625$353,713
2055$353,713$7,000$21,223$381,936
2156$381,936$7,000$22,916$411,852
2257$411,852$7,000$24,711$443,563
2358$443,563$7,000$26,614$477,177
2459$477,177$7,000$28,631$512,808
2560$512,808$7,000$30,768$550,576
2661$550,576$7,000$33,035$590,611
2762$590,611$7,000$35,437$633,047
2863$633,047$7,000$37,983$678,030
2964$678,030$7,000$40,682$725,712
3065$725,712$7,000$43,543$776,255
3166$776,255$7,000$46,575$829,830
3267$829,830$7,000$49,790$886,620

Results Summary

Years to Retirement:32
Years in Retirement:18
Annual Income Needed at Retirement:$135,192
Projected Savings at Retirement:$829,830
Estimated Safe Monthly Withdrawal:$2,766
Status:Shortfall

Age-Based Retirement Planning Strategies

Building in Your 30s

✅ Advantages

  • • Higher income to increase savings rate
  • • 30+ years of growth potential remaining
  • • Career stabilization and earning growth
  • • Still time to recover from setbacks

⚠️ Challenges

  • • Home buying and family expenses
  • • Childcare costs and education planning
  • • Balancing multiple financial goals

📋 Action Items

  • • Increase savings rate to 15-20% of income
  • • Maximize both 401(k) and IRA contributions
  • • Consider increasing risk tolerance for growth
  • • Review and optimize investment allocations annually

💰 Catch-Up Contributions

No catch-up contributions needed - regular limits apply

2025 IRS Retirement Contribution Limits

Standard Contributions

401(k), 403(b), 457(b):$23,500
Traditional/Roth IRA:$7,000
SIMPLE IRA:$16,000

Catch-Up (Age 50+)

401(k) additional:+$7,500
IRA additional:+$1,000
SIMPLE IRA additional:+$3,500

Source: IRS Publication 560 - Retirement Plans for Small Business

Retirement Planning Key Takeaways

  • Start saving as early as possible - a 25-year-old needs to save half as much monthly as a 35-year-old for the same retirement goal
  • Maximize employer 401(k) matching first - it's an immediate 50-100% return on your contribution
  • Use catch-up contributions at age 50+ to save an extra $8,500 annually ($7,500 in 401k + $1,000 in IRA)
  • The 4% withdrawal rule requires 25x your annual expenses - needing $40K/year means saving $1 million
  • Diversify across Traditional and Roth accounts to manage future tax liability in retirement
  • Plan for healthcare costs averaging $300,000+ per couple in retirement according to Fidelity estimates

Traditional vs Roth Retirement Accounts

Category
Traditional 401(k)/IRA
Roth 401(k)/IRA
Tax Treatment
Tax deduction now, taxed in retirement
No deduction now, tax-free in retirement
Best For
Higher tax bracket now than in retirement
Lower tax bracket now or young savers
Required Distributions
Must start at age 73
No RMDs for Roth IRA (401k has RMDs)
Income Limits
401(k): None, IRA: Phases out at higher incomes
401(k): None, IRA: Phases out $138K-$153K (single)
Strategy
Reduce current tax bill, defer taxes
Lock in current tax rate, hedge against future increases

Retirement Planning Quick Facts (2025)

Full Retirement Age:67 (born 1960+)

Age for full Social Security benefits - check ssa.gov for your specific age

Social Security Max Benefit:$3,822/month

Maximum monthly benefit at full retirement age in 2025

Medicare Eligibility:Age 65

Sign up during initial enrollment period to avoid penalties

Life Expectancy Planning:85-90 years

Plan for 20-25 years in retirement, with potential longevity risk

Retirement Planning at a Glance

Savings Priority Order:Emergency fund → Employer match → High-interest debt → Max IRA → Max 401(k) → Taxable investments
Asset Allocation by Age:20s-30s: 80-90% stocks, 40s: 70-80% stocks, 50s: 60-70% stocks, 60s+: 50-60% stocks
Social Security Strategy:Can claim at 62 (reduced), full benefits 67, delayed until 70 (132% of full benefit)
Healthcare Costs:Plan $300K+ per couple lifetime, consider HSA for triple tax advantage if eligible
Withdrawal Strategy:4% rule as starting point, adjust for inflation, market conditions, and spending flexibility

Advanced Retirement Strategies

advanced Level
  • 1
    Use the 'mega backdoor Roth' if your 401(k) allows after-tax contributions - potential for $69,000 total annual contributions
  • 2
    Consider Roth IRA conversions during market downturns or low-income years to minimize taxes on conversions
  • 3
    Implement tax-location strategies - hold tax-inefficient investments in tax-advantaged accounts
  • 4
    Plan Social Security claiming strategy with spousal benefits - higher earner may delay to age 70 for maximum family benefit
  • 5
    Use HSA as stealth retirement account - triple tax advantage and no RMDs if used for qualified medical expenses
  • 6
    Create a retirement income 'bucket' strategy - short-term safety, medium-term growth, long-term aggressive growth

Current Market Data & Research Sources

Access current market data and retirement planning research from official government and financial industry sources:

Government Sources

Investment Research

These sources provide current, authoritative data for retirement planning. Always consult multiple sources and consider professional advice for your specific situation.

Planning Your Retirement

Understand how to build and manage your retirement savings for a secure financial future

How Does Retirement Planning Work?

Retirement planning is the process of determining retirement income goals, the actions and decisions necessary to achieve those goals, and the appropriate management of assets. It includes identifying sources of income, estimating expenses, implementing a savings program, and managing assets and risk. Future cash flows are estimated to determine if the retirement income goal will be achieved. Proper retirement planning considers not just financial factors but also life expectancy, desired lifestyle, and potential healthcare needs.

Key Retirement Terms

  • Retirement Age:The age at which you plan to stop working and begin living off your retirement savings.
  • Retirement Corpus:The total amount of money you need to accumulate by retirement to fund your post-retirement lifestyle.
  • Withdrawal Rate:The percentage of your retirement savings you withdraw each year to cover living expenses.
  • Life Expectancy:The estimated number of years you are expected to live, which helps determine how long your retirement savings need to last.
  • Inflation:The rate at which the general level of prices for goods and services rises, eroding purchasing power over time.

Benefits of Retirement Planning

  • Financial Security:Ensure you have enough money to maintain your desired lifestyle throughout retirement.
  • Peace of Mind:Reduce anxiety about the future by having a clear plan for your financial needs.
  • Tax Advantages:Take advantage of tax-deferred or tax-free growth in retirement accounts to maximize savings.
  • Legacy Planning:Create a plan for transferring wealth to heirs or charitable causes after your lifetime.
  • Healthcare Readiness:Prepare for potential medical expenses that often increase with age.

Smart Retirement Strategies

Start Early

The power of compound interest means that even small amounts invested in your 20s and 30s can grow significantly by retirement age.

Maximize Employer Match

If your employer offers matching contributions to your retirement plan, contribute at least enough to get the full match—it's essentially free money.

Diversify Retirement Accounts

Consider a mix of traditional (tax-deferred) and Roth (tax-free growth) retirement accounts to provide tax flexibility in retirement.

Adjust Strategy Over Time

Gradually shift from growth-oriented investments to more conservative options as you approach retirement to protect your savings.

The 4% Rule

The 4% rule is a guideline used to determine how much a retiree should withdraw from a retirement account each year. This rule seeks to provide a steady income stream while maintaining an account balance that keeps income flowing through retirement.

How it works:

  • 1In the first year of retirement, withdraw 4% of your total retirement savings.
  • 2In subsequent years, adjust the dollar amount for inflation.
  • 3Example: With $1 million saved, you could withdraw $40,000 in year one, then adjust that amount for inflation in future years.

Frequently Asked Questions

A common rule of thumb is to save 10-12 times your annual pre-retirement income, but this varies based on your desired lifestyle, expected longevity, healthcare needs, and other factors. Our retirement calculator can help you determine a more personalized target based on your specific situation.

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