How Much Should I Save for Retirement?

Saving for retirement often comes down to two questions: Are you saving enough, and how long will your retirement savings last?

This retirement savings calculator gives you a quick, personalized estimate based on the details you provide, letting you see where you currently stand and test how different choices might change the outcome.

How to Use This Retirement Savings Calculator

Before you start, gather a few details to make your estimate as accurate as possible. Having everything on hand keeps the process quick and straightforward.

What you’ll need:

• Current retirement account balances 401(k), IRA, and other savings
• A recent pay stub or W-2 for your annual income
• A Social Security estimate from ssa.gov if you want to enter a custom number instead of using the calculator’s default

Once you have your information ready, the calculator walks you through three simple steps:

1. Income and savings: Enter your current income, existing retirement savings, and monthly contribution amount. This sets the foundation for your projection.
2. Assumptions: Review the default rate of return, inflation rate, and income replacement percentage. Adjust any of these to match your expectations.
3. Social Security: Enter your estimated Social Security benefit or use the default. This adds a key income source to your projection.

After you enter your details, the calculator produces a year-by-year projection table showing how your savings could grow and eventually support your retirement income. 

Understanding Your Results and the Assumptions Behind Them

The calculator's projection rests on several key assumptions. Each one shapes your results in a different way, and all of them are adjustable so you can test different scenarios.

Rate of return drives how fast your savings grow before and after retirement. A higher assumed return means your money compounds more quickly, but it also means your projection depends on stronger market performance. The calculator uses different rates for your saving years and your retirement years, since many people shift to a more conservative investment mix as they approach retirement.

Inflation gradually increases the cost of goods and services over time. Your retirement savings need to keep pace with rising prices, so the calculator factors inflation into your spending needs. Even a modest inflation rate can noticeably reduce your purchasing power over a 20- or 30-year retirement.

Income replacement percentage estimates how much of your pre-retirement income you will need each year in retirement. Many people find they need less than their full working income because certain expenses, like commuting or payroll taxes, decrease. The default percentage gives you a baseline to work from, but your actual needs depend on your lifestyle and spending plans.

Testing a range of values helps you understand which assumptions have the biggest effect on your projection. For a deeper look at the drawdown side of these same assumptions, explore how long your retirement savings may last.

What the Calculator Doesn't Capture

This estimate cannot fully reflect your Social Security claiming strategy, healthcare costs in retirement, or other income sources like a pension or part-time work. Each of these can change your retirement outlook in ways the tool alone cannot capture. Learning more about Social Security retirement benefits can help you think through that decision.

These limitations are why many people turn to a financial advisor to help them plan this phase of life. If your results surface questions or gaps worth discussing, consider connecting with an LPL financial advisor to talk through your retirement plan.