Estimate the nest egg needed to fund a target retirement income.
The nest egg needed is retirement income divided by the sustainable withdrawal rate, such as the common four-percent rule. A lower withdrawal rate requires a larger portfolio for the same income. Anchoring retirement to an income and a safe withdrawal rate gives a concrete savings target to plan toward.
Retirement Need
Nest egg = annual income / withdrawal rate
Nest egg = annual income / withdrawal rate The nest egg needed is retirement income divided by the sustainable withdrawal rate, such as the common four-percent rule. A lower withdrawal rate requires a larger portfolio for the same income.
Anchoring retirement to an income and a safe withdrawal rate gives a concrete savings target to plan toward.
This calculator takes 2 inputs: Annual expenses in retirement, Sustainable withdrawal rate. The pre-filled defaults are a realistic starting point — replace them with figures from your own environment for a result you can act on.