Calculate if you're on track for retirement. Supports US 401(k), Canada RRSP, and Australia Super. Free, instant, no sign-up.
How Much Do You Need to Retire?
The most common rule of thumb is the 4% Rule: you can safely withdraw 4% of your retirement portfolio in the first year, then adjust for inflation each year. This gives you a ~30-year runway.
To calculate your target:
Desired annual income ÷ 0.04 = retirement goal
Example: $60,000/year needed → $1,500,000 target portfolio
The 4% rule is based on historical US market data (the Trinity Study). Some experts now suggest a more conservative 3.5% or 3% withdrawal rate due to lower expected future returns.
Retirement Savings Benchmarks by Age
Fidelity's guidelines (2025) suggest having:
| Age | Target (× Annual Salary) | Example (@ $60k) |
|---|
| 30 | 1× | $60,000 |
| 35 | 2× | $120,000 |
| 40 | 3× | $180,000 |
| 45 | 4× | $240,000 |
| 50 | 6× | $360,000 |
| 55 | 8× | $480,000 |
| 60 | 10× | $600,000 |
| 67 | 10× | $600,000+ |
If you're behind these benchmarks, don't panic — increase your savings rate. Even a 1–2% increase can make a big difference over 10+ years.
💡 Catch-Up Contributions: At age 50, you can contribute extra to your 401(k) — +$7,500/year (2025). This is a powerful tool if you're behind.
401(k), RRSP, or Super — What's the Difference?
🇺🇸 401(k) — United States
Tax-advantaged employer plan. 2025 limit: $23,000 (under 50), $30,500 (50+). Withdrawals taxed as income. RMDs start at age 73.
🇨🇦 RRSP — Canada
Contribution room = 18% of prior year's income (max $31,560 for 2025). Tax-deductible. Withdrawals fully taxed. Must convert to RRIF at age 71.
🇦🇺 Super — Australia
Employer must contribute 11.5% of salary. Taxed at 15% (lower than most brackets). Accessible at preservation age (60–67).
Employer Match: The Free Money You Can't Afford to Miss
Getting the full employer match is the highest-return investment you can make. It's an immediate 100% return on your money.
Example: Employer matches 100% up to 3% of salary. You earn $60,000 → contribute $1,800 (3%) → Employer adds $1,800 → Instant 100% return!
Not contributing enough to get the full match is leaving free money on the table. This is priority #1 before any other investing.
⚠️ Vesting Schedules: Some employers use vesting — you only own matching contributions after X years. Check your plan's schedule before changing jobs.
Government Pensions: What Will You Get?
Government pensions are important but shouldn't be your only source:
- US Social Security: ~$1,900/month average (2025). Taxable above income thresholds.
- Canada CPP: ~$800/month average. Taking early (60) reduces by 0.6%/month; delaying to 70 increases it.
- Australia Age Pension: Means-tested. ~$1,047/fortnight max (2025). Many asset-rich retirees don't qualify.
Don't rely on government pensions alone. They're designed to supplement, not replace, your savings.
How to Catch Up If You're Behind
Many people realize they're behind in their 40s or 50s. It may not be too late — but act aggressively:
- Max catch-up contributions (401k: +$7,500/yr after age 50)
- Delay retirement by 2–5 years — more growth time + shorter withdrawal period
- Downsize your home — freeing equity can fund years of retirement
- Work part-time in retirement — $1,000/month from a side gig reduces portfolio draw significantly
- Reduce your target income — you may need less than you think (no commute, paid-off mortgage)
📌 Reality Check: The average retiree spends less in retirement than during working years. 60–70% of pre-retirement income is more realistic than 80%.
FAQ – Retirement Calculator
Q: What's a good savings rate for retirement?
Aim for 15% of gross income (including employer match). Started late? You may need 20–25%. The key is to start now — even small amounts compound dramatically over time.
Q: Roth vs. Traditional 401(k) — which is better?
Roth (taxed now, tax-free later) is better if you expect a higher tax bracket in retirement. Traditional (deductible now, taxed later) is better if you expect a lower bracket. Many use both.
Q: When can I retire?
Use the 4% rule: once your portfolio reaches 25× your expected annual spending, you have a high probability of success. "Can retire" and "want to retire" are different questions.
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