Retirement Calculator

How much employer match is worth

An employer match is the highest guaranteed return available to most people. A 50% match on contributions up to 6% of salary means every dollar you contribute immediately becomes $1.50 — a 50% return before the market does anything.

Contributing below the match cap is genuinely leaving compensation on the table. The "free money check" panel above shows your annual gap and what you would lose by stopping.

Vesting schedules do apply: you usually have to stay employed a certain number of years before employer contributions become fully yours. Your own contributions always vest immediately.

Choosing a realistic return assumption

The single input that most distorts retirement projections is the rate of return. A portfolio earning 9% over 30 years ends up with roughly double what a 6% portfolio does — which is why optimistic assumptions are dangerous.

A practical approach: use 6% to 7% nominal while accumulating, dial down to 4% to 5% as you approach retirement and shift toward bonds, and always check results both ways.

This calculator also converts everything into today’s purchasing power using your inflation input. That discounted figure is the one to trust when deciding whether a target is realistic.

Turning a balance into income

The classic rule of thumb is the 4% rule: withdraw 4% of your portfolio in the first year of retirement, then adjust that dollar amount for inflation each year afterward. It was designed for roughly a 30-year retirement with a diversified stock-and-bond portfolio.

It is a starting point, not a law. Longer retirements, early retirement, or a portfolio concentrated in cash or single stocks all require a lower sustainable rate. Some researchers suggest 3.25% to 3.75% when retiring early or expecting to live a very long time.

Do not forget that Social Security, pensions, annuities and part-time work stack on top of portfolio withdrawals, and that Medicare eligibility begins at 65 no matter when you stop working.

Account types and where to put money first

Order matters, because tax treatment compounds as strongly as investment returns do:

• Contribute enough to your 401(k) to capture the full employer match.
• Max out an HSA if you have a high-deductible health plan — deductible going in, tax-free growth, tax-free withdrawals for medical costs.
• Fill an IRA (Roth or traditional depending on your expected future tax rate).
• Return to the 401(k) up to the annual limit.
• Use a taxable brokerage account for anything beyond that.