Retirement Savings Calculator — Are You on Track?
Planning for retirement is one of the most consequential financial decisions you'll make — yet most Americans have no idea whether they're actually saving enough. A 2024 Federal Reserve survey found that nearly 30% of non-retired adults have no retirement savings at all, and of those who do, many are significantly behind where they need to be.
The good news: knowing your number is the first step to fixing it. Use our free retirement savings calculator below to find out exactly where you stand.
→ Open the Retirement Savings Calculator
The calculator shows your projected nest egg at retirement, estimated monthly income from savings, and how you compare to Fidelity's savings benchmarks — all in real time as you adjust your inputs.
How Much Do You Need to Retire?
The most widely used framework in retirement planning is the 4% rule: at retirement, you can safely withdraw 4% of your portfolio each year and have a statistically high probability of not running out of money over a 25–30 year retirement horizon.
What that means in practice:
- To generate $3,000/month in retirement → you need approximately $900,000
- To generate $5,000/month → you need approximately $1.5 million
- To generate $8,000/month → you need approximately $2.4 million
Social Security will supplement these figures, but financial planners consistently recommend treating it as a bonus rather than a foundation. The average Social Security benefit in 2025 is approximately $1,900/month — meaningful, but rarely sufficient on its own.
The Fidelity Savings Benchmarks
Fidelity's age-based savings targets are among the most widely referenced guidelines in personal finance. They're based on the goal of maintaining your pre-retirement standard of living:
| Age | Savings Target |
|---|---|
| 30 | 1× your annual salary |
| 35 | 2× your annual salary |
| 40 | 3× your annual salary |
| 50 | 6× your annual salary |
| 60 | 8× your annual salary |
| 67 | 10× your annual salary |
If you're behind these benchmarks, don't panic — the calculator will show you exactly how much you'd need to increase your savings rate to get back on track.
Why Starting Early Matters More Than Saving More
The single most powerful variable in retirement savings isn't how much you save — it's how long your money has to compound.
Consider two investors, both targeting retirement at 65:
Investor A starts at 25, saves $500/month for 10 years, then stops completely. Total contributed: $60,000.
Investor B starts at 35, saves $500/month for 30 years. Total contributed: $180,000.
Assuming a 7% annual return, Investor A ends up with more money at 65 — despite contributing $120,000 less. That is the compounding advantage of time, and it cannot be replicated by saving more later.
What Rate of Return Should You Use?
The default 7% annual return in the calculator reflects the historical inflation-adjusted average of the S&P 500 over long periods. Here's a practical guide for choosing your rate:
- 5–6% — conservative; suitable for a balanced portfolio of stocks and bonds
- 7% — moderate; appropriate for a diversified equity-heavy portfolio
- 8–9% — aggressive; assumes higher equity allocation, higher short-term volatility
For anyone more than 20 years from retirement, 7% is a reasonable baseline assumption. As you approach retirement, most advisors recommend gradually shifting toward more conservative allocations.
401(k) vs Roth IRA — Which Is Better?
Both are excellent retirement vehicles. The key difference is when you pay taxes:
Traditional 401(k) / IRA — contributions are pre-tax, reducing your taxable income today. You pay taxes on withdrawal in retirement. Best if you expect to be in a lower tax bracket in retirement.
Roth 401(k) / Roth IRA — contributions are after-tax. Qualified withdrawals in retirement are completely tax-free. Best if you expect to be in the same or higher tax bracket in retirement, or if you're early in your career.
For most people under 40, the Roth option is generally more advantageous — you lock in today's tax rates, and your money grows tax-free for decades.
Frequently Asked Questions
How much should I save for retirement each month?
The standard recommendation is 15% of gross income, including any employer match. If you're starting later than 30, consider 20–25% to compensate. Even starting at 5–10% and increasing annually is far better than waiting.
What if I'm significantly behind the Fidelity benchmarks?
Run your numbers in the calculator, then identify your gap. The most effective levers are: increasing your savings rate, delaying retirement by 2–3 years, or reducing expected retirement expenses. Often a combination of small changes closes a large gap.
Should I max out my 401(k) before investing in a brokerage account?
Generally yes — the tax advantages of 401(k) and IRA accounts are significant. Prioritize: employer 401(k) match → max Roth IRA ($7,000/year in 2025) → max 401(k) ($23,000/year in 2025) → taxable brokerage.
Can I retire early with this calculator?
Yes — adjust the retirement age to your target. If you're pursuing FIRE (Financial Independence, Retire Early), use a more conservative withdrawal rate (3–3.5%) given a longer retirement horizon.
The Right Tools for Retirement Investing
Once you know your target, the next step is choosing where to invest. Robo-advisors like Betterment and Wealthfront automate the process — they build a diversified, tax-optimized portfolio based on your retirement timeline and risk tolerance, and rebalance automatically. Both charge 0.25% annually, a fraction of traditional advisor fees.
For hands-on investors, M1 Finance offers commission-free investing with automatic rebalancing and no management fee on standard accounts.
→ Open the Free Retirement Savings Calculator
This article is for informational purposes only and does not constitute financial advice. Always consult a qualified financial advisor before making retirement planning decisions.
