Understanding the Impact of Your Contributions on Retirement Income
This calculator helps you explore three critical retirement planning questions through interactive tables. Each view provides different insights into how your savings strategy affects your retirement:
📊 Required Annual Contribution
Shows the percentage of your income you need to save annually to achieve your retirement income goal. Compare different starting ages and retirement ages to see how time affects your required savings rate.
⚠️ Key Limitations:
- Assumes constant contribution percentage (doesn't account for salary changes)
- Uses average annual return (actual returns vary year-to-year)
- Doesn't factor in career breaks or job changes
💵 Income Replacement by Contribution Rate
Displays how much of your current income different contribution rates will replace in retirement. This helps you understand what lifestyle different savings rates will support.
⚠️ Key Limitations:
- Based on current income level (doesn't project future income growth)
- Assumes spending needs remain constant relative to income
- 4% withdrawal rule may not suit all retirement scenarios
🎯 Lump Sum Required
Calculates the one-time investment amount needed at different ages to reach your goal with NO additional contributions. This is the lump sum you would need to invest at that specific point in time, OR the balance required at those ages you could theoretically stop contributing while still meeting your retirement goals.
⚠️ Key Limitations:
- Assumes lump sum stays fully invested (no early withdrawals)
- Doesn't account for taxes on lump sum sources (inheritance, sale, etc.)
- Market timing risk not considered (assumes consistent returns)