Have You Saved Enough? A Retirement Savings Calculator

hen penciling out retirement savings plans, the discussion usually comes with a nagging question: “Do I have enough?”

*Please note that we do not offer loans. This calculator is for education purposes and to illustrate how loans work.*

When penciling out retirement savings plans, the discussion usually comes with a nagging question: “Do I have enough?” The unknown can be a cause of stress. With the right approach, you can confidently assess your retirement readiness and take action.

This guide will walk you through the process of determining the retirement savings you need and offers pointers on using the calculator on this page.

The Retirement Savings Reality Check

According to the AARP, one in five Americans above the age of 50 have no retirement savings. It is a terrifying figure, but there are some points of good news. The AARP also says that Americans are 15x more likely to save for retirement if their employer offers a plan, while other evidence suggests that opt-out plans have better participation that opt-in plans, meaning people are more likely to participate if the employer requires employees to deliberately not participate.

Happily, with the retirement savings calculator at the top of this page, you can pencil out your path to retirement.

Retirement Savings Calculator Key Factors

Working from the top of the auto loan calculator down, there are five factors:

1. Your Current Age

Your age today in years.

2. Anticipated Retirement Age

This is your targeted retirement age. Consider that you may want to tinker with this number in case you retire earlier or work longer.

• Early Retirement (before 65)
• Traditional Retirement (65-67)
• Delayed Retirement (after 67)

3. Current Retirement Savings

This is the amount you currently have saved across all accounts. 401(k) and Simple IRA accounts are common, but don’t forget to include checking, savings and brokerage accounts that you might use for cash flow during retirement.

4. Annual Interest Rate (ROR)

This rate is determined by your aggregate asset allocation. For purposes of the calculator, figures in the 6% to 8% range are probably reasonable depending on your age. A comprehensive financial plan will offer more detail, including scenario analysis where the returns come out better or worse than the base case.

5. Amount At Retirement

This is the total amount you want to have on the day you retire.

Retirement Savings Calculator Outputs

1. Monthly Investment Required

This is the amount you’ll need to contribute each month to hit your target.

2. Number of Contributions

This is the length of time in months you’ll have contributed to your retirement from today through the day you retire.

3. Total Amount Invested

This is the amount of money you’ll have contributed to your retirement fund.

4. Interest Earned

This is the total amount of money you’ll have earned on your contributions.

5. Estimated Final Value

This is a confirmation that the math checks out- it should be fairly close to the amount you entered.

6. Last Deposit Date

This is your retirement date (or the last month before withdrawals start).

Signs You May Not Have Enough Retirement Savings

Watch for the following warning signals, which may indicate that you are off course on your path to retirement:

1. Your savings rate is under 15% of income
2. You’re tapping or plan to tap retirement funds early
3. Your debt-to-income ratio (total debt monthly debt payments divided by total monthly income) exceeds ~36%
4. You do not have a retirement or financial plan
5. You’re counting on inheritance or other windfalls

Strategies to Close the Retirement Gap

If you’re concerned about having enough for retirement, consider these strategies:

1. Maximize Catch-Up Contributions

If you’re over 50, take advantage of catch-up contributions:

• Additional $7,500 in 401(k) plans (2025)
• Extra $1,000 in IRAs (2025)

2. Delay Social Security Benefits

For each year you delay claiming Social Security beyond full retirement age (up to age 70), your benefit increases by approximately 8%.

3. Consider a Phased Retirement

Working part-time during early retirement years provides income while allowing your investments to continue growing.

4. Reevaluate Your Asset Allocation

Ensure your investment strategy balances growth potential with appropriate risk levels for your age and goals.

5. Explore Downsizing or Relocating

Housing typically represents 30-40% of retirement expenses. Reducing this cost can significantly impact your retirement readiness.

6. Develop Multiple Income Streams

Consider rental properties, annuities, part-time work, or other income sources to reduce pressure on your investment portfolio.

Building Your Retirement Savings Plan

Once you’ve calculated your target retirement nest egg number, create a retirement saving strategy:

1. Maximize tax-advantaged retirement accounts (401(k)s, IRAs)
2. Take full advantage of employer matching contributions
3. Consider catch-up contributions if you’re over 50
4. Develop an appropriate asset allocation strategy
5. Regularly reassess and adjust your plan

Conclusion

Calculating your retirement savings isn’t a one-time exercise. Instead, it’s an ongoing process. As your life circumstances change and you get closer to retirement (or perhaps you are in it already), revisit your calculations and adjust accordingly.

While these calculations provide guidance, working with our team can help you create a personalized plan that accounts for your unique situation and goals. By understanding how much you’ll need and creating a strategic plan to achieve it, you can build a nest egg that provides financial security throughout your retirement years.

Can we help you with this Retirement Age Calculator?

For more than 47 years, we have collaborated with our clients in their investment decision making process as they pursue their long-term financial goals.

We are committed to keeping your goals, concerns and attitude about investing at the heart of your plan.

If you’re considering a large purchase, but want additional guidance and ready to experience our personalized investment approach and exceptional client service, contact Jason R. Clark, CFA at 949.424.1013 or jclark@kovitz.com.