Retirement Calculator
Find out how much you'll have at retirement based on your current savings, monthly contributions and expected returns. See a year by year projection and get a free AI retirement analysis personalised to your goals.
How Much Do You Need to Retire?
(Examples below use generic currency units — the calculator works in your own currency.) The most common question in retirement planning has no single answer — it depends on when you want to retire, how much you expect to spend each year, and how long you'll need your money to last. But there are reliable frameworks that give you a useful starting point.
The most widely used rule of thumb is the 25x Rule: multiply your expected annual retirement spending by 25. This gives you the target retirement pot needed to sustain withdrawals indefinitely at a 4% annual withdrawal rate — a rate backed by decades of research into portfolio longevity.
At a 4% withdrawal rate, 750,000 generates 30,000 per year and should last 30+ years
This is a starting point, not a guarantee. Your actual target depends on factors like state pension entitlement, other income sources, healthcare costs, and how long you live. Use the calculator above to model your specific situation.
How Retirement Savings Are Calculated
Our Retirement Calculator uses compound interest to project how your savings will grow over time. There are two components: the growth of your existing savings, and the accumulated growth of your ongoing monthly contributions.
Example: 20,000 saved today + 400/month at 7% for 30 years = projected pot of 519,500
The calculator also shows a real value — your projected pot adjusted for inflation. This is arguably the most important number because 500,000 in 30 years will have significantly less purchasing power than 500,000 today. Always check the inflation-adjusted figure when planning.
How Much Should You Save for Retirement Each Month?
A commonly cited guideline is to save 10–15% of your gross income for retirement throughout your working life. Starting earlier dramatically reduces the monthly amount needed to reach any given target — this is the power of compound interest at work.
| Starting Age | Monthly Saving Needed | Total Contributed | Pot at 67 (7% return) |
|---|---|---|---|
| 25 | 300/month | 151,200 | ~910,000 |
| 30 | 430/month | 184,900 | ~910,000 |
| 35 | 630/month | 201,600 | ~910,000 |
| 40 | 950/month | 205,200 | ~910,000 |
| 45 | 1,550/month | 202,800 | ~910,000 |
| 50 | 2,800/month | 218,400 | ~910,000 |
To reach the same retirement pot of around 910,000 by age 67, someone starting at 25 needs to save 300 per month. Someone starting at 50 needs nearly ten times that — 2,800 per month. This is why starting early, even with small amounts, is the single most impactful retirement decision you can make.
What Is a Realistic Investment Return to Use?
The return rate you enter into the calculator has a massive impact on the projected outcome, so it's worth understanding what's realistic. Here are commonly used benchmarks:
| Investment Type | Historical Annual Return | Risk Level |
|---|---|---|
| Cash savings account | 2–4% | Very low |
| Government bonds | 3–5% | Low |
| Balanced fund (60/40) | 5–7% | Medium |
| Global stock market index | 7–10% | Medium-high |
| Individual stocks | Highly variable | High |
Most financial planners use 5–7% as a conservative real-world assumption for a diversified portfolio, after inflation. Using 7% or above without also checking the inflation-adjusted result can give an overly optimistic picture. We recommend running the calculator at both 5% and 7% to see the range of outcomes.
The Impact of Inflation on Your Retirement
Inflation is the silent enemy of retirement savings. At 2.5% annual inflation, the purchasing power of money halves roughly every 28 years. This means a retirement pot that looks impressive in nominal terms may provide a much more modest income in real terms.
| Nominal Pot Value | Real Value (2% inflation, 30 years) | Real Value (3% inflation, 30 years) |
|---|---|---|
| 500,000 | 277,000 | 206,000 |
| 750,000 | 415,000 | 309,000 |
| 1,000,000 | 553,000 | 412,000 |
| 1,500,000 | 830,000 | 618,000 |
This is why our calculator shows both the nominal projected pot and the real value in today's money. When setting your retirement target, always use the inflation-adjusted figure as your benchmark — not the nominal one.
Retirement Planning at Different Life Stages
Retirement Calculator Worked Example
Here's a full worked example to show how the numbers come together:
Projected pot (nominal): 752,400
Real value in today's money: 337,600
Monthly income (25-year retirement): 2,508/month nominal · 1,127/month real
Total contributions made: 217,000
Investment growth: 535,400
In this example, 217,000 of actual contributions grows to over 752,000 through compound returns — the investment growth of 535,000 is more than double what was actually saved. However, in today's money that pot is worth 337,600, providing around 1,127 per month in real purchasing power over a 25-year retirement. This illustrates why both government pension entitlements (such as State Pension in the UK, Social Security in the US, or the Age Pension in Australia) and any other income sources need to be factored into the full retirement picture.
If your retirement plans involve moving money across borders — transferring a pension overseas, receiving income from abroad, or retiring to another country — Wise offers real exchange rates with low transparent fees. No hidden markups, no surprise charges.
Check Wise Rates — Free to Sign UpCalcNest may earn a commission if you open a Wise account via this link, at no extra cost to you.
FAQs
How much do I need to retire comfortably?
A common rule of thumb is to multiply your expected annual retirement spending by 25. So if you plan to spend £30,000 per year, you’d need a pot of around £750,000. Use the calculator above to model your specific situation based on your age, savings and expected return.
How much should I save for retirement each month?
Most financial planners recommend saving 10–15% of your gross income. The exact amount depends heavily on when you start — someone saving from age 25 needs roughly £300/month to reach a similar pot as someone saving £2,800/month from age 50. Earlier is always significantly cheaper.
What is a realistic return rate to use in a retirement calculator?
For a diversified portfolio, most planners use 5–7% annually as a conservative long-term assumption. Using 7% or above without checking the inflation-adjusted result can give an overly optimistic picture. We recommend running the calculator at both 5% and 7% to see the range of possible outcomes.
How do I calculate my retirement income from my savings?
Divide your projected retirement pot by the number of months you expect to be in retirement. For example, a £500,000 pot over 25 years (300 months) gives roughly £1,667 per month before any state pension or other income. Our calculator shows this automatically after you click Calculate.
What is the 4% rule in retirement planning?
The 4% rule states that you can withdraw 4% of your retirement pot per year and the money should last at least 30 years, based on historical market returns. It’s the basis of the 25x rule — saving 25 times your annual spending gives you enough to withdraw 4% indefinitely.
Does inflation affect my retirement savings?
Significantly. At 2.5% annual inflation, the purchasing power of money roughly halves every 28 years. Our calculator shows both the nominal projected value and the real value in today’s money — always use the inflation-adjusted figure when setting your retirement target.
Can I retire at 55?
It’s possible but requires a significantly larger pot and higher monthly contributions, since your savings need to last longer and you have fewer working years to accumulate them. Use the retirement age field in the calculator to model retiring at 55 and see exactly what monthly savings are required.
Is the Retirement Calculator free to use?
Yes — completely free, no sign-up required. Enter your figures above and get your full retirement projection instantly.