How to use this planner
Enter your current age, target retirement age, current savings, monthly contribution, expected annual return, employer match percentage, and annual salary. The planner compounds growth monthly and shows the projected balance at milestone ages, total contributions, the employer match value, and the monthly income the projected balance would generate under the 4% withdrawal rule. The two inputs that matter most are monthly contribution and expected return — experiment with both to see their effect.
What your result means
The summary indicates whether your trajectory approaches roughly 25x your annual income, a common benchmark for sustaining 30 years of retirement withdrawals at 4%. The "Monthly Income (4%)" figure is the projected balance multiplied by 4% and divided by 12 — compare it to your expected retirement expenses, not your current income. If contributions plus employer match only get you partway to the 25x goal, the contribution rate, retirement age, or expected return needs to move.
When to trust it
The projection assumes a fixed annual return every year, which never happens in reality — actual market returns are volatile, and a bad decade early in retirement (sequence-of-returns risk) can derail even a well-funded plan. The 4% rule is a starting guideline, not a guarantee; sustainable withdrawal rates depend on your asset allocation, retirement length, and market conditions. For a real plan, model multiple scenarios and consult a fiduciary financial advisor, especially within 10 years of retirement.
Frequently Asked Questions
What should I do first when starting a retirement plan?
In order: capture any employer 401(k) match (an immediate 50-100% return nothing else matches), build a small emergency fund so retirement money stays untouchable, pay down high-rate debt, then open an IRA (traditional or Roth, depending on whether your current tax rate is likely higher or lower than your future one). Only after those does taxable investing make sense. The order matters more than optimizing any single step.
Should I use a 401(k), an IRA, or both?
Usually both, and they're not rivals. The 401(k) gets your match plus higher contribution limits and automatic payroll investing; the IRA gives you lower fees, better investment selection, and (with Roth) tax-free withdrawals. A common pattern: 401(k) up to the match, then max the IRA, then return to the 401(k) if more capacity is needed. The worst option is the one people actually choose — saving in neither because the choice felt complicated.
How often should I revisit my retirement plan?
Once a year for a full check (contribution rate, allocation vs. target-date glide path, beneficiaries), plus immediately after major life events: marriage, children, job changes, inheritance. Daily market watching adds nothing but anxiety — your plan should be built to survive bad years without intervention. The one number worth reviewing more than annually is your savings rate: it's the lever that actually moves the outcome.