MONEY & ACCOUNTING

Retirement goal

Five million, ten million, or a target of your own. Work backwards from the amount you want and the age you want it, to the savings you need to start today.

Your destination

Currency

These are only starting figures. Use your own.

Target retirement savings

USD

Already saved and invested

USD

Your age today

years

Target retirement age

years

Expected yearly return, after fees & taxes

Expected yearly inflation

What does your target mean?

Reach the exact amount entered. Inflation will reduce what it can buy by retirement.

YOUR SAVINGS PLAN

Save each month from now

$6,758.67

For 25 years (300 end-of-month deposits). Keep the contribution fixed in USD.

Target at retirement: $5,000,000
Projected balance: $5,000,000
Worth in today’s money: $2,388,028
Your money put in, including savings: $2,127,601
Investment growth / loss: $2,872,399

Prefer to invest once, today?

$1,064,993 extra

An alternative to the monthly plan—not an additional requirement. Leave this plus your existing savings invested until retirement.

Estimates, not a promise. Actual returns fluctuate. A large balance alone does not establish a comfortable retirement.

What if returns are different?

The same target and timeline, with a different fixed monthly contribution in each case.

Lower return

4% a year

$9,302.22

per month

Your assumption

6% a year

$6,758.67

per month

Higher return

8% a year

$4,747.19

per month

Your path to retirement

Age 40$100,000

Age 47$849,661

Age 54$1,976,875

Age 61$3,671,787

Age 65$5,000,000

How the savings plan is worked out

1. Set the destination

The time available is your retirement age minus your age today, rounded to whole months. A future-amount target stays unchanged. A today-money target grows by (1 + inflation rate) for each year until retirement.

2. Let existing savings grow

The yearly return is an effective annual rate. Its monthly equivalent is (1 + yearly rate)^(1/12) − 1. Existing savings are projected forward using that monthly rate.

3. Fill the remaining gap

Monthly saving = (future target − future value of existing savings) ÷ monthly deposit growth factor. That factor is ((1 + monthly rate)^months − 1) ÷ monthly rate. At zero return it is simply the number of months. If the target is already covered, no extra saving is needed.

4. Keep the assumptions in view

Deposits arrive at the end of each month and stay fixed; returns are smooth and reinvested. Use a return after expected fees and taxes. No withdrawals, pensions or employer contributions are included unless you account for them yourself. The once-today alternative is target ÷ growth factor − existing savings.

Will that amount be enough to live on?

That depends on spending, inflation, retirement length, taxes and investment risk. This page solves the savings target, not a guaranteed retirement income.

Explore retirement income →