Retirement Calculator

Scenario 1: Priya, 32 — Graphic Designer, Recently Married

Priya and her husband want to retire at 67. They currently have $18,000 saved across old 401(k)s and a Roth IRA, and can set aside $500 per month together. They're unsure if that monthly amount is enough, and whether they need to increase it now or can wait until their salaries grow.

• Input: Current savings $18,000, monthly contribution $500, expected annual return 6.5%, current age 32, retirement age 67, no employer match included.
• Result: Estimated total at retirement: ~$840,000, which would provide about $34,000 per year in today's dollars using a 4% withdrawal rate.
• Key insight: Even a modest monthly contribution of $500 grows significantly over 35 years, but the resulting income is below the national median. Small early increases matter more than waiting for a big salary jump.

"I honestly thought $500 a month would give us a lot more. Seeing that it only covers basic expenses makes me realize we need to push for $700, or find a way to increase our income in the next few years."

Takeaway: Starting early helps, but the monthly number still needs to match your lifestyle goals. Don't assume time alone will make up for a small contribution.

Scenario 2: Marcus, 48 — Public School Teacher, Divorced

Marcus has $142,000 in a 403(b) and a small pension expected at age 65 worth about $1,100/month. He can only contribute $350 per month due to child support and other expenses. He plans to work until 67 but is worried about losing years of compounding from his divorce settlement a decade ago.

• Input: Current savings $142,000, monthly contribution $350, expected annual return 6%, current age 48, retirement age 67, pension income $1,100/month starting at 65.
• Result: Portfolio at 67: ~$560,000, plus pension. Combined income from 4% withdrawal and pension: about $3,350/month before tax.
• Key insight: Factoring in the pension dramatically changes the picture — without it, Marcus would have only ~$2,300/month. The pension covers a third of his needed income, making his retirement workable even with lower contributions.

"I've been beating myself up for not saving more after the divorce. But seeing that the pension fills a big gap is a relief. I still need to be careful, but I'm not as far behind as I thought."

Scenario 3: Evelyn and Tom, 61 and 63 — Small Business Owners, Planning Early Retirement

They want to retire at 64 (Tom) and 66 (Evelyn). They have $780,000 in IRAs and taxable accounts, plus a rental property that nets $1,400/month. They can contribute $2,000 monthly total until retirement. They're unsure whether retiring at different ages creates a shortfall in the early years before Social Security kicks in.

• Input: Current savings $780,000, monthly contribution $2,000, expected annual return 5.5% (more conservative due to near-retirement), retirement ages 64 and 66, rental income $1,400/month, expected Social Security at 67 and 70 separately.
• Result: Tom retires first. Portfolio at Evelyn's retirement (age 66, 2 years after Tom stops working): ~$870,000. Combined income from withdrawals, rental, and eventual Social Security: about $5,400/month in early years, dropping to $4,800/month after one spouse passes away.
• Key insight: The two-year gap where only Evelyn works while Tom is retired creates a temporary drawdown of ~$48,000 from the portfolio. The calculator shows this is manageable, but it's a critical period that requires careful cash-flow planning — not just a single retirement target.

"We always planned for the same retirement date, but it made more sense for me to keep working a bit longer. I was nervous about the overlap period, but running the numbers showed we'd be fine as long as we don't touch the rental income during that time."

Takeaway: Staggered retirement dates create a cash-flow gap that many couples overlook. Running the calculator for each partner's timeline separately reveals whether that gap is survivable or requires a mid-course correction.