How to Calculate If You're Saving Enough for Retirement

Step-by-step guide to projecting your retirement balance and finding your savings gap. Covers return rates, the 4% rule, and how to close the gap.

Step 1: Enter your current age and target retirement age
The number of years between now and retirement is the most powerful variable in the calculation. Even 5 extra years of saving and compounding makes an enormous difference.
Step 2: Enter your current retirement savings
Include all tax-advantaged accounts: 401(k), IRA, Roth IRA, pension, ISA, SIPP. Enter the current total balance across all accounts.
Step 3: Set your monthly contribution
Enter how much you're currently contributing each month across all retirement accounts. Include any employer match — it's free money that significantly boosts your projected balance.
Step 4: Enter expected annual return
Use 6–7% for a balanced retirement portfolio. Use 8–9% for an aggressive stock-heavy allocation if you're decades from retirement. Reduce by 2–3% as you approach retirement age.
Step 5: Set your expected monthly spending in retirement
Most financial planners use 70–80% of your pre-retirement income as a starting estimate. Enter the monthly amount you'd need to maintain your desired lifestyle.
Step 6: Review your projection and gap
The calculator shows your projected balance at retirement and whether it can sustain your target monthly withdrawal (using the 4% safe withdrawal rate). If there's a gap, it shows you how much extra to contribute monthly to close it.