Retirement Calculator

Retirement maths boils down to one mismatch: the money you accumulate over a working life versus the money you spend over a retirement that might last thirty years. This calculator estimates the first and compares it with the second.

The projection simply grows today's savings and your monthly contributions at a chosen rate until your retirement age. Because it compounds, the two inputs that dominate the answer are the contribution and the start date. Increasing your monthly amount is powerful, but starting earlier is more powerful still, since every extra year multiplies the whole balance rather than merely adding to it.

On the spending side, the calculator uses the familiar twenty-five-times rule, which is the arithmetic behind the four per cent guideline: if you withdraw about four per cent of your pot in the first year and adjust for inflation thereafter, the money has historically stood a fair chance of lasting several decades. Twenty-five times your desired income is therefore a rough target, not a guarantee.

Be aware of what a projection leaves out. Investment returns are not steady, so a bad decade just before retirement hurts more than a bad decade at forty. Inflation means the income you need at sixty-five buys less than the same figure today. Fees shave a little every year and compound against you. And any employer match or state pension adds a second income stream that this simple model ignores.

Use the result as a directional check on whether you are saving enough, then verify the details with a qualified financial adviser. This is an estimate for planning only, not financial advice.

This calculator returns estimates for general information only. It is not financial, investment, tax or legal advice, and it cannot replace guidance from a qualified professional who knows your circumstances. Figures such as loan payments, investment growth and retirement projections are simplified models based on the inputs and assumptions you provide, not guarantees of future results.