Read a retirement projection as a conditional scenario
Enter current savings, fixed monthly contributions and whole-number ages. The model grows savings monthly until retirement, then withdraws the gap between desired spending and outside income. All displayed balances are nominal USD. Income inputs use today’s dollars; they are inflated to retirement and annually thereafter.
Choose assumptions you can explain
Use effective annual nominal returns, including a lower-return scenario. A constant rate cannot reproduce the effect of early losses during withdrawals. Increase the planning end age to examine longevity exposure; it is not a prediction of life expectancy. Include healthcare and other costs in spending rather than relying on a national average.
Check timing and inflation assumptions
The model assumes Social Security and other income both start at retirement and maintain purchasing power at the selected inflation rate. Actual claiming ages and pension indexation can differ. Use your own benefit estimate from Social Security, then review whether this simplifying assumption fits. Contributions stay fixed in nominal dollars and are paid at month-end.
Understand a funding shortfall
A shortfall is recorded in the first month when available assets cannot fund that month’s required withdrawal. Exactly funding the last scheduled withdrawal counts as funded through this horizon. If outside income covers all spending, zero portfolio assets do not create a modeled withdrawal shortfall. Surplus outside income is not reinvested.
Use benchmarks as context
Dividing annual portfolio spending by 4% gives 25 times that spending. For example, $60,000 / 0.04 = $1.5 million. This arithmetic is not a safe withdrawal guarantee and is not the model used in the projection. Fidelity’s salary-multiple milestones also depend on its retirement age, savings and lifestyle assumptions; they are not universal requirements.
Account and tax treatment is outside this calculator
The tool combines assets into one balance. It does not enforce 401(k), IRA or HSA eligibility, annual contribution limits, tax deductions, withdrawal taxes or required distributions. Traditional, Roth and taxable accounts can produce different after-tax spending. Check current rules and account details separately before treating the modeled balance as spendable income.