Retirement Calculator
Model your path to retirement. Factor in 401(k) contributions, employer match, investment growth, and Social Security to see your projected retirement income.
Common: 50% match on first 6% of salary, or 100% match on first 3–4%
Portfolio growth to retirement
Balance breakdown
Year-by-year projection
| Year | Age | Contributed | Employer | Growth | Balance |
|---|---|---|---|---|---|
| 1 | 31 | $62,000 | $2,250 | $4,167 | $68,417 |
| 2 | 32 | $74,000 | $4,500 | $9,664 | $88,164 |
| 3 | 33 | $86,000 | $6,750 | $16,590 | $109,340 |
| 4 | 34 | $98,000 | $9,000 | $25,046 | $132,046 |
| 5 | 35 | $110,000 | $11,250 | $35,144 | $156,394 |
| 10 | 40 | $170,000 | $22,500 | $114,720 | $307,220 |
| 15 | 45 | $230,000 | $33,750 | $257,286 | $521,036 |
| 20 | 50 | $290,000 | $45,000 | $489,146 | $824,146 |
| 25 | 55 | $350,000 | $56,250 | $847,592 | $1,253,842 |
| 30 | 60 | $410,000 | $67,500 | $1,385,491 | $1,862,991 |
| 35 | 65 | $470,000 | $78,750 | $2,177,786 | $2,726,536 |
The employer match is the best return in finance
A 50% employer match on your 401(k) is an instant 50% return — before your money even touches the market. No stock, bond, or real estate investment offers that. If your employer offers a match and you aren't contributing enough to capture all of it, you are losing guaranteed free money every pay period.
The most common employer match formula is 50% of the first 6% of salary. On a $75,000 salary, that means contributing $4,500/year (6%) gets you $2,250 in free employer contributions. Over a 35-year career at 7% returns, that match alone grows to roughly $325,000.
The 4% rule and what it actually means
The 4% rule comes from the 1994 Trinity Study: withdraw 4% of your portfolio in year one of retirement, adjust for inflation each year after, and historically you had a 95%+ chance of not running out of money over 30 years. A $1 million portfolio supports $40,000/year in withdrawals.
The rule has critics. Current bond yields and equity valuations differ from the historical period studied. Many planners now recommend 3.5% as more conservative. But the principle holds: your retirement income from savings is a function of your portfolio size times a sustainable withdrawal rate. Growing the portfolio is the lever you control.
401(k) vs IRA vs Roth — where to put the money
Contribute to your 401(k) up to the employer match first — that's the free money tier. After that, consider a Roth IRA ($7,000 limit for 2026, $8,000 if 50+) for tax-free growth and withdrawals. Then max out the 401(k) ($23,500 limit, $31,000 if 50+). This sequence maximises both the employer match and tax diversification.
Traditional 401(k) and IRA contributions reduce your taxable income today — you pay taxes when you withdraw in retirement. Roth accounts use after-tax dollars but grow tax-free forever. If you expect to be in a higher tax bracket in retirement (or believe tax rates will rise), Roth is more valuable. If you need the tax break now, traditional wins.
Social Security is a floor, not a plan
The average Social Security benefit in 2026 is roughly $1,976/month ($23,712/year). The maximum benefit at full retirement age (67) is $4,018/month. Social Security replaces about 40% of pre-retirement income for average earners — it was never designed to be your entire retirement income. Think of it as a guaranteed base layer. Your personal savings provide the rest. The gap between Social Security and the lifestyle you want is the number this calculator helps you fill.
Related tools & guides
This calculator is for illustrative purposes only and does not constitute financial advice. Projected returns are hypothetical and not guaranteed — investments can lose value. Actual Social Security benefits depend on your earnings history, claiming age, and future policy changes. The 4% withdrawal rate is based on historical data and may not apply to all market conditions. Consult a qualified financial advisor for personalized retirement planning. MacroSpire is not a registered investment advisor.