Retirement Calculator
See how much you could have when you retire, the monthly income it can pay, and how much more to save each month to reach the retirement you want.
How the retirement calculator works
The calculator has two stages.
- Saving: your current savings grow each month at your expected return, and your monthly saving is added. Your monthly saving goes up each year by the percentage you choose, for example in line with pay rises.
- Retirement: the money is invested more cautiously at the return-after-retiring rate while you draw an income that rises with inflation each year, until the age you plan for.
All results in “today’s money” are adjusted for inflation, so you can compare them with prices now. A pot of 950,000 in 30 years buys roughly what 390,000 buys today at 3% inflation.
What the results mean
- Savings at retirement: the projected size of your pot on the day you retire.
- Monthly income it can pay: the inflation-linked income your pot can support until your plan-until age, shown in today’s money.
- Shortfall or surplus: how far your pot is from the amount needed to pay your target income.
- Extra to save per month: the additional fixed amount to save from now until retirement to close the gap.
Choosing your assumptions
The answer depends heavily on the numbers you enter, so try a few. Long-term returns of 5% to 7% a year before retiring and 3% to 4% after retiring are common planning figures for a mixed investment portfolio; cash savings usually earn less. Use a realistic inflation rate for your country. Planning until age 90 or 95 reduces the risk of running out of money.
Ways to close a gap
- Save a little more each month, or increase your saving every year.
- Retire a few years later, which adds saving years and shortens the retirement you need to fund.
- Start earlier: money saved in your 20s and 30s has the longest time to grow.
- Include any pension, provident fund or government benefits in your target, and reduce the income you need from savings accordingly.
This calculator is for planning only and is not financial advice. It does not include taxes, fees or the ups and downs of real markets.
Retirement Calculator FAQs
Answers about returns, inflation and how much to save.
How much do I need to retire?+
Enter the monthly income you want in today's money. The calculator works out the pot needed to pay it, rising with inflation, until your plan-until age, and compares it with your projected savings.
What return should I use?+
Many planners use 5% to 7% a year before retirement for a mixed investment portfolio and 3% to 4% after retiring, when money is usually invested more cautiously. Use lower figures for savings accounts.
Why show amounts in today's money?+
Prices rise over time. Showing results in today's money lets you judge what your future savings and income will actually buy.
Does it include my pension or provident fund?+
Add your current balance to Savings now and regular contributions to Saving per month. For a guaranteed pension income, lower your target income by that amount.
Is this financial advice?+
No. It is a planning estimate. Real returns go up and down, and taxes and fees are not included. Speak to a qualified adviser for personal advice.
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