How it works
Your savings and each monthly contribution are compounded monthly until retirement. The result is in today's money only if you enter a real return, meaning the expected return minus inflation; a 7% return with 3% inflation is about a 4% real return.
The income figure uses the 4% rule: withdraw 4% of the pot in the first year and adjust for inflation afterwards. Historical US studies found this lasted at least 30 years in most periods, but it is a rule of thumb, not a guarantee.
- Starting ten years earlier roughly doubles the pot at a 7% return.
- Fees matter: 1% a year in fees can cut the final pot by around a fifth over 35 years.
- Include employer contributions in the monthly amount if you receive them.