What your pot reaches by retirement, and how long it lasts.
Pot at retirement
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In today's money
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Monthly income it supports
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At the 4% rule
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Of it you contributed
Pot over time — building, then drawing down
What builds the pot
A projection at a fixed rate, not a forecast. Real returns vary year to year, inflation moves, and a bad run early in retirement does disproportionate damage. This is not financial advice — speak to a licensed adviser before relying on it.
How this works
Each month before retirement: pot = pot × (1 + r/12) + contribution
Each month after: pot = pot × (1 + r/12) − withdrawal
4% rule: safe annual income ≈ pot × 0.04
Saving 600 a month from 32, 7% return
Pot at 65
Starting from zero
≈ 890,000
Starting from 25,000
≈ 1,120,000
Starting 10 years later, at 42
≈ 460,000
Starting ten years later roughly halves the outcome. Time matters far more than the amount.
The 4% rule suggests you can draw 4% of the pot in year one, rising with inflation, and not run out over 30 years.
Inflation is the quiet risk — at 2.5%, money halves in buying power in about 28 years.
Shift toward lower-risk assets near retirement; a crash in the first years of drawdown is the most damaging thing that can happen.
Currency
Amounts follow the currency selected above.
How much do I need to retire?
A common starting point is 25 times your annual spending, which is the 4% rule inverted. Wanting 40,000 a year implies a pot near 1,000,000, less whatever a state or workplace pension provides.
What is the 4% rule?
Draw 4% of the pot in the first year of retirement, then increase that amount with inflation. Historically that has lasted 30 years in most scenarios, though it is a guideline, not a guarantee.
What return should I assume?
Be conservative. 6-7% before retirement and 4-5% after is a reasonable planning basis for a diversified portfolio. Assuming 10% will badly overstate what you will have.
Does this include Social Security or a workplace pension?
No — it only projects the pot you build from what you enter as saved and contributed. Add any expected state pension or Social Security income separately on top of the "monthly income it supports" figure to see your full retirement income.