Retirement Savings Examples (2026)
The table below illustrates how different savings strategies can impact your retirement nest egg. These examples assume a 7% annual return (historical S&P 500 average) and 2.5% inflation. The "Monthly Income" column shows what you could safely withdraw using the 4% rule.
| Current Age | Retirement Age | Current Savings | Monthly Contribution | Total at Retirement | Inflation Adjusted | Monthly Income (4% Rule) |
|---|---|---|---|---|---|---|
| 25 | 65 | $5,000 | $500 | $1,247,000 | $600,000 | $2,000 |
| 30 | 65 | $10,000 | $500 | $1,012,000 | $530,000 | $1,767 |
| 35 | 65 | $25,000 | $750 | $1,156,000 | $650,000 | $2,167 |
| 40 | 65 | $50,000 | $1,000 | $1,089,000 | $680,000 | $2,267 |
| 25 | 60 | $5,000 | $750 | $1,456,000 | $750,000 | $2,500 |
| 30 | 60 | $20,000 | $1,000 | $1,234,000 | $720,000 | $2,400 |
Calculations assume 7% annual return, 2.5% inflation, and monthly compounding. The 4% rule suggests withdrawing 4% of your portfolio annually for a 30-year retirement. Actual results may vary based on market conditions.
How We Calculate Your Retirement
Our retirement calculator uses the compound interest formula adjusted for inflation to give you a realistic view of your future purchasing power.
- Investment Growth: We calculate capital appreciation based on your estimated annual return, compounded monthly.
- Inflation Adjustment: We discount your future total back to today's dollars using the inflation rate you provide. This shows you what your savings will actually buy in the future.
- Monthly Income: We apply the 4% Safe Withdrawal Rule to estimate a sustainable monthly income from your portfolio.
Data Sources & Methodology (2026 Update)
The default values in this calculator are based on historical market data and economic projections for 2026:
- Avg. Market Return: ~7% real return (historically adjusted S&P 500). Source: Investopedia / NYU Stern.
- Inflation Target: ~2-3% based on Federal Reserve long-term targets.
Use Professional Judgment
This tool provides estimates for informational purposes only and does not constitute financial advice. Tax laws and economic conditions may change. Consult a qualified financial advisor for personalized planning.
Last updated: December 2026
Related Financial Calculators
Planning for retirement involves multiple financial considerations. These related tools can help you build a complete financial picture:
Frequently Asked Questions
When can I retire?
You can retire once your passive income (from savings, pension, Social Security) exceeds your annual expenses. For many, this happens between ages 60 and 67, but "FIRE" (Financial Independence, Retire Early) practitioners aim for as early as 30s or 40s. Use our [ROI Calculator](https://vercalc.com/finance/roi-calculator) to see how different investment returns affect your retirement timeline.
How does inflation affect my savings?
Inflation reduces the purchasing power of money over time. $1 million today will buy significantly less in 30 years. Our calculator adjusts for this, showing you the "Real Value" of your money so you don't overestimate your wealth. For detailed inflation analysis, use our [Inflation Calculator](https://vercalc.com/finance/inflation-calculator).