Understanding the retirement calculator
Retirement planning reduces to two compounding problems: growing a balance while you work, then drawing it down without running out. This calculator handles the first directly and estimates the second with the well-known 4% rule the historical finding that withdrawing 4% of the starting balance, adjusted for inflation each year, survived every 30-year period in U.S. market history.
The 4% rule is a rule of thumb, not a law: it assumes a diversified portfolio, ignores taxes and fees, and was derived from one country's past. Treat the income figure as a first approximation, and revisit the plan periodically contribution rate and retirement age are the levers that move the outcome most.
Results are estimates for education only and are not financial advice.