This calculator provides estimates based on the inputs you provide and standard financial assumptions. It uses a fixed annual return rate, doesn't account for market volatility, and assumes constant contribution amounts. For a more precise retirement plan, consult with a certified financial planner who can consider your complete financial picture, tax implications, and market conditions.

The earlier, the better. Thanks to compound interest, money saved in your 20s and 30s has decades to grow. For example, saving $5,000 annually from age 25 to 65 at a 7% return yields about $1.1 million. Waiting until age 35 to start would yield only about $530,000 - less than half! Even small amounts saved early can make a significant difference.

Your Social Security benefit is based on your highest 35 years of earnings, adjusted for inflation. The maximum benefit at full retirement age (67 for those born after 1960) is about $3,822 per month in 2024. You can get an estimate of your future benefits by creating a "my Social Security" account at SSA.gov. Benefits can be claimed as early as 62 (with reduction) or delayed until 70 (with increase).

The main retirement accounts in the US are:

• 401(k)/403(b): Employer-sponsored plans with tax advantages. Many employers offer matching contributions.
• Traditional IRA: Individual retirement account with tax-deductible contributions (income limits apply).
• Roth IRA: Contributions are made with after-tax money, but withdrawals in retirement are tax-free.
• 457(b): For government and certain nonprofit employees.
• Health Savings Account (HSA): Can be used as a retirement account for medical expenses.

The 4% rule is a common retirement withdrawal strategy suggesting that you can withdraw 4% of your retirement savings in the first year of retirement, then adjust that amount for inflation each subsequent year, with a high probability your savings will last 30 years. This rule is based on historical market returns. However, many financial advisors now recommend a more conservative 3-3.5% withdrawal rate due to lower expected future returns and longer lifespans.

Inflation reduces the purchasing power of your money over time. At 3% annual inflation, prices double approximately every 24 years. This calculator accounts for inflation by using a "real return" (nominal return minus inflation). For example, if you expect a 7% investment return and 3% inflation, the calculator uses 4% as the growth rate. This shows your savings in today's purchasing power, making it easier to understand how much you'll actually be able to buy in the future.