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.