How is the retirement savings calculated?

The calculator uses compound interest with monthly contributions. Each month, your existing balance earns interest at the annual rate divided by 12, and your monthly contribution is added. This is repeated for each year until your retirement age. The year-by-year growth table shows this progression in detail.

What is the 4% rule used for monthly income?

The 4% rule is a widely accepted retirement planning guideline. It suggests you can withdraw 4% of your total retirement savings in the first year. We divide this annual amount by 12 to show your estimated monthly retirement income. This helps you assess whether your savings will support your desired lifestyle.

Why does inflation matter for retirement planning?

Inflation reduces the purchasing power of your money over time. A dollar today buys more than a dollar will in 30 years. Our calculator shows both your nominal savings and the inflation-adjusted value (in today's dollars) so you can realistically assess whether your retirement savings will meet your future needs.

What annual return rate should I use?

Historical share market returns average around 7-10% per year before inflation. A balanced portfolio (shares and bonds) might return 5-8%. Conservative investments (term deposits, bonds) might return 3-5%. Use a rate that reflects your investment strategy and risk tolerance. Past performance does not guarantee future results.

How much should I save for retirement?

Financial experts generally recommend saving 10-15% of your income for retirement. A common rule of thumb is to have 1x your salary saved by age 30, 3x by age 40, 6x by age 50, and 8x by age 60. In Australia, your employer contributes 11.5% superannuation (increasing to 12% in 2025). Use this calculator to test different contribution amounts and see what works for your goals.

Retirement Calculator

Plan your retirement savings with superannuation projections, monthly contributions, and projected retirement income

Retirement Planning

Current Age

Retirement Age

Current Savings ($)

Monthly Contribution ($)

Expected Annual Return (%)

Expected Inflation (%)

Quick Scenarios

Retirement Projection

Total Savings at Retirement

Monthly Retirement Income (4% Rule)

Retirement Summary

Total Contributions

Total Interest Earned

Years to Retirement

Inflation-Adjusted Savings

Savings Composition

Initial Savings

Monthly Contributions

Interest Earned

Year-by-Year Growth

Year	Age	Starting Balance	Contributions	Interest	Ending Balance

Showing first 10 years

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Plan Your Retirement

Enter your current age, savings, and contribution details above to see your retirement projection