Retirement Planning Calculator: Secure Your Financial Future
Retirement planning spans decades of accumulation followed by decades of decumulation, requiring estimation of future needs and modeling investment growth.
The Retirement Savings Formula
- 80% Replacement Rule: Most retirees need 70-80% of pre-retirement income
- 25× Annual Expenses: Required savings = 25 × annual retirement expenses
The 4% Rule
Developed by William Bengen in 1994, the 4% Rule suggests retirees can withdraw 4% of initial portfolio value annually with 95% confidence the portfolio lasts 30 years.
Social Security Optimization
- Age 62: Earliest eligibility, benefits reduced 25-30%
- Full Retirement Age (66-67): 100% of primary insurance amount
- Age 70: Maximum delayed credits, benefits increase 8% annually
Retirement Readiness Checklist: Save 15% of income minimum, maximize employer match, diversify across account types, delay Social Security to 70 if health permits.