Master retirement planning with our comprehensive calculator and expert strategies. Plan your financial future, explore savings options, and get personalized recommendations to achieve your retirement goals.
Create your personalized retirement plan with multiple savings strategies and asset allocation recommendations
The calculator makes certain assumptions that impact your results. Click below to view and adjust these assumptions.
These factors significantly impact your retirement calculations. Adjust them to match your personal expectations.
That's $750 more than your current monthly contribution.
| Years until retirement: | 35 |
| Target retirement savings: | $1,200,000 |
| Projected savings at current rate: | $750,000 |
| Retirement savings gap: | $450,000 |
| Desired annual income: | $48,000 |
| Projected income from savings: | $30,000 |
| Estimated Social Security: | $18,000 |
| Income gap: | $0 |
There are several types of accounts you can use to save for retirement. Each has different tax advantages, contribution limits, and rules.
Description: Employer-sponsored retirement plans with higher contribution limits.
Annual Contribution Limit (2025): $23,000
Catch-up Contribution (age 50+): Additional $7,500
Best for: Taking advantage of employer matches, higher contribution limits, and convenient payroll deductions.
Description: Personal retirement accounts you can open independently of your employer.
Annual Contribution Limit (2025): $7,000
Catch-up Contribution (age 50+): Additional $1,000
Best for: Additional retirement savings beyond workplace plans, more investment options, and Roth tax advantages.
Description: A tax-advantaged account for healthcare expenses that can also serve as a retirement account.
HSAs offer triple tax advantages: tax-deductible contributions, tax-free growth, and tax-free withdrawals for qualified medical expenses. After age 65, you can withdraw funds for any purpose, paying only ordinary income tax (like a Traditional IRA).
Annual Contribution Limit (2025): $4,150 (individual) / $8,300 (family)
Catch-up Contribution (age 55+): Additional $1,000
Best for: Triple tax advantages if you have a high-deductible health plan, healthcare expenses in retirement.
Description: Regular brokerage accounts without specific tax advantages.
While these accounts don't offer upfront tax breaks, they provide flexibility with no withdrawal restrictions or contribution limits. Long-term capital gains are taxed at lower rates than ordinary income, and you can implement tax-efficient strategies.
Annual Contribution Limit: No limit
Best for: Supplemental savings after maxing out tax-advantaged accounts, flexibility for early retirement, and liquidity needs.
Based on your profile, here is a recommended savings strategy:
Please complete the calculator first to see your personalized savings strategy.
How you allocate your investments among different asset classes is one of the most important factors in your retirement planning. The right allocation balances growth potential with your risk tolerance and time horizon.
| Bonds: | 60% |
| Stocks: | 30% |
| Cash/Money Market: | 10% |
Expected Annual Return: 4-5%
Risk Level: Low
Best for: Retirees or those within 5 years of retirement, conservative investors prioritizing capital preservation.
| Stocks: | 60% |
| Bonds: | 35% |
| Cash/Money Market: | 5% |
Expected Annual Return: 6-7%
Risk Level: Medium
Best for: Those 5-15 years from retirement, balanced approach between growth and capital preservation.
| Stocks: | 80% |
| Bonds: | 15% |
| Cash/Money Market: | 5% |
Expected Annual Return: 8-10%
Risk Level: High
Best for: Those 15+ years from retirement, comfortable with market volatility for long-term growth.
| Stocks: | 90% |
| Bonds: | 10% |
| Cash/Money Market: | 0% |
Expected Annual Return: 9-11%
Risk Level: Very High
Best for: Young investors 20+ years from retirement, very high risk tolerance.
A common rule of thumb is to subtract your age from 110 or 120 to determine the percentage of your portfolio that should be in stocks. For example, if you're 30, you might aim for 80-90% in stocks. This gradually shifts your portfolio toward more conservative investments as you approach retirement.
Please complete the calculator first to see your personalized asset allocation recommendation.
Best for: Anyone starting their retirement planning journey or wanting to verify they're on the right track.
Successful retirement planning isn't just about saving money—it's about understanding how much you need, where to save it, and how to make your money work for you over decades.
The 80% Rule is Often Wrong: Financial advisors traditionally say you need 80% of your pre-retirement income. But studies show retirees often spend just as much or more in early retirement due to:
Real Example: Sarah planned for 80% of her $80,000 salary ($64,000/year). But her actual retirement expenses were $78,000 in the first five years due to travel, healthcare, and helping her daughter buy a house.
The Power of Compound Interest: Starting retirement savings early is the closest thing to a financial superpower.
Example: Two people want $1 million by age 65:
Starting 10 years later nearly doubles the required monthly savings. Starting 20 years later means saving almost 4x as much each month.
Best for: Understanding which accounts to prioritize and how much to contribute to each.
Not all retirement accounts are created equal. The key is understanding the tax advantages and contribution limits of each type.
Why These Come First: Employer-sponsored plans often include matching contributions—literally free money you can't get anywhere else.
2025 Contribution Limits:
Traditional vs Roth 401k:
Pro Tip: If your employer offers both, consider splitting contributions. Put enough in Traditional to drop your tax bracket, then put the rest in Roth.
When to Use IRAs: After you've captured your full employer match, IRAs often offer better investment options and lower fees.
2025 Contribution Limits:
Income Limits for 2025:
Backdoor Roth Strategy: High earners can contribute to a Traditional IRA (non-deductible) then convert to Roth IRA.
Triple Tax Advantage: HSAs are the only account that's tax-deductible going in, grows tax-free, and comes out tax-free for qualified expenses.
2025 Contribution Limits:
Retirement Strategy: Pay healthcare expenses out of pocket while young, let the HSA grow. After age 65, you can withdraw for any purpose (taxed as regular income, like a Traditional IRA).
Real Example: Jennifer maximized her HSA for 20 years while paying medical expenses out of pocket. At retirement, she had $150,000 in her HSA—all tax-free for medical expenses or taxable for other uses.
Best for: Understanding how to invest your retirement savings for optimal growth while managing risk.
Asset allocation—how you divide your money between stocks, bonds, and other investments—is more important than individual stock picks.
Traditional Rule: "100 minus your age" in stocks. At 30, you'd have 70% stocks, 30% bonds.
Modern Rule: "120 minus your age" in stocks, reflecting longer lifespans and low interest rates.
Target Date Funds: These automatically adjust allocation as you age. They start aggressive (90% stocks) when you're young and become conservative (40% stocks) near retirement.
Why It Matters: A 25-year-old with 90% stocks might average 9% returns. The same person with 50% stocks might average 6% returns. Over 40 years, that's the difference between $2.3 million and $1.3 million on the same contributions.
International Exposure: Consider 20-30% international stocks. When US markets struggle, international markets often perform better.
Bond Considerations: In low interest rate environments, consider shorter-term bonds or Treasury Inflation-Protected Securities (TIPS).
Real Estate (REITs): 5-10% in Real Estate Investment Trusts can provide inflation protection and diversification.
Sample Allocation for 30-year-old:
Your retirement strategy should evolve as your career and life circumstances change. Here's what to focus on at each stage:
Priority #1: Start immediately, even with small amounts. Time is your biggest asset.
Key Strategies:
Common Mistake: Waiting until you "have more money." Starting with $50/month at 22 beats starting with $500/month at 32.
Priority #1: Maximize contributions while income is highest. These are your power saving years.
Key Strategies:
The 15% Rule: Aim to save 15% of income for retirement. This includes employer match.
Priority #1: Finalize your retirement income plan and catch up if behind.
Key Strategies:
Social Security Tip: Delaying benefits past full retirement age increases payments by 8% per year until age 70.
Here are real examples of people who successfully planned for retirement using different strategies:
Background: Maria, 45, teacher who had only $23,000 saved for retirement.
Strategy Used: Aggressive catch-up plan with side income
Results:
Her Quote: "I thought it was too late to start seriously saving at 45, but the catch-up contributions and extra income made a huge difference. I'm not rich, but I can retire comfortably."
Background: Jake and Emma, both 28, software engineers earning $85,000 each.
Strategy Used: High savings rate with smart tax planning
Results:
Their Quote: "We lived on one salary and saved the other. It required sacrifice, but having 20+ years of freedom was worth living modestly in our 30s."
Background: Robert, 25-65, postal worker with modest income ($45,000-$65,000 range).
Strategy Used: Consistent contributions with automatic increases
Results:
His Quote: "I wasn't making big money, but I was consistent. The automatic increases meant I never missed the extra $25/month, but over 40 years it made me a millionaire."
Avoid these costly mistakes that can derail your retirement plans:
The Mistake: Taking a cash distribution from your 401k when you leave a job instead of rolling it over.
The Cost: A 30-year-old cashing out $20,000 pays $7,000 in taxes and penalties immediately, plus loses $180,000 in growth by retirement.
The Fix: Always roll over to your new employer's 401k or to an IRA. The money stays invested and keeps growing tax-free.
The Mistake: Contributing less than needed to get your full employer match.
The Reality: This is literally turning down free money. A 50% match on 6% of salary means you get an immediate 50% return on your contribution.
The Fix: Always contribute enough to get the full match before focusing on any other savings goals.
The Mistake: Stopping contributions during market downturns or trying to predict market movements.
Why It Backfires: Studies show investors who try to time the market earn 3-4% less annually than those who stay invested.
The Fix: Automate contributions and stay consistent through all market conditions. Market downturns let you buy more shares at lower prices.
The Mistake: Not planning for healthcare expenses in retirement, which aren't fully covered by Medicare.
The Reality: The average couple needs $300,000+ for healthcare in retirement. Long-term care can cost $100,000+ per year.
The Fix: Factor healthcare into your retirement budget and consider long-term care insurance in your 50s-60s.
Once you've mastered the basics, these advanced strategies can optimize your retirement planning:
The Strategy: Optimize which investments go in which account types based on tax efficiency.
General Rules:
The Impact: Proper tax location can add 0.2-0.5% to your annual returns through better tax efficiency.
The Strategy: Convert Traditional IRA/401k funds to Roth during low-income years.
Best Times for Conversions:
Advanced Tip: Convert just enough each year to "fill up" your current tax bracket without bumping into the next one.
For High Earners: If your 401k allows after-tax contributions and in-service withdrawals, you can contribute up to $70,000+ to Roth accounts annually.
How It Works:
Requirements: Your plan must allow after-tax contributions and either in-service withdrawals or in-plan Roth conversions.
Use our comprehensive calculator above to create your personalized retirement plan and see exactly how much you need to save each month.
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