Retirement Savings Calculator
Toberman Becker Wealth’s Retirement Savings Calculator helps forecast your projected total savings when you retire. Based on your current assets, investment strategy, and retirement timeline, this data can help you track your progress and establish realistic savings goals.
As our calculator provides instant feedback, you can experiment with hypothetical scenarios and see how your money will grow under various conditions. These insights can inform your approach toward critical retirement decisions and help you achieve the post-career lifestyle you’ve always imagined.
Explanation of Terms
- Current Pretax Retirement Account Savings: The total balance of your pretax retirement savings, including Traditional IRAs, 401(k)s, 403(b)s, and any account that receives funds yet to be taxed as income.
- Annual Pretax Contribution: The average amount you plan to contribute to pretax retirement savings accounts during one calendar year.
- Average Annual Investment Return: The total rate of return you expect annually.
- Age at Retirement: The age at which you will end full-time employment and start to rely upon retirement savings and benefits.
- Estimated Monthly Social Security at Full Retirement Age: The monthly amount of Social Security benefits you will receive if you start collecting benefits at age 67 or your full retirement age (FRA).
- Total Savings at Retirement: The estimated total balance of your pretax retirement savings accounts when retirement begins.
- Monthly Net Spending in Retirement: The amount you can safely spend from your pretax retirement assets on a monthly basis during retirement. This amount does not factor in after-tax income sources, pension benefits, or taxable fixed-income sources like Treasury investments.
- Annual Net Spending in Retirement: The amount you can safely spend during each year of your retirement, based on a 4% withdrawal rate in Year 1 with inflation adjustments in subsequent years – all net of a 30% Federal + State tax rate.
How Can The 4% Rule Assist in Retirement Planning?
The 4% rule serves as the foundational principle of this Retirement Savings Calculator. A well-respected framework in retirement planning, the 4% rule helps determine the amount of savings you can reasonably expect to withdraw from a portfolio during each year of retirement without depleting your balance before the conclusion of a 30-year retirement.
For example, if you have $1,000,000 in retirement savings and follow the 4% rule, you would withdraw 4% in the first year ($40,000 before tax) for discretionary spending. The following year, you can adjust for inflation by adding, for example, 2% and withdrawing $40,800. To support a 30-year time horizon, you can reasonably expect to repeat this pattern every year by adding each year’s respective inflation rate to the prior year’s withdrawal amount.
While the 4% rule establishes a helpful starting point, life can be unpredictable, and the rule has certain limitations. We recommend speaking with a financial advisor to regularly review your plan and make adjustments that reflect your family’s unique circumstances.
About Us
Toberman Becker Wealth is a fee-only, independent fiduciary firm based out of St. Louis. Whether starting to dream about retirement in your 50s or actively planning for retirement in your 60s, we can help you formulate a resilient retirement plan. We always operate in the best interests of our clients, and our top priority is to help you live comfortably now and in the future with a substantial savings strategy.
If you’re looking for an investment advisor to help you build a diversified retirement plan that ensures comfort and peace of mind, please book a meeting or give us a call.
Craig Toberman is a Partner at Toberman Becker Wealth – a fee-only, fiduciary financial advisor based in St. Louis. He assists families and businesses with strategic financial planning and long-term wealth management. He has over a decade of experience in financial services and has crafted custom financial plans for hundreds of families and businesses.