How much do I need to retire?

It depends on what you spend, how long you live, inflation, your returns and any pension income. This calculator estimates the savings required at retirement so that inflation-adjusted spending, net of other income, is funded to your life expectancy.

What is the real return and why does it matter?

Real return = ((1 + nominal return) ÷ (1 + inflation)) − 1. It measures growth in purchasing power. If it is near zero or negative, savings keep their value only through contributions, and the required savings rise sharply.

What happens if my projection shows a shortfall?

The calculator shows the shortfall and the extra monthly saving, starting now, that would close it (assuming it rises with your contribution increase). You could also retire later, spend less, or change the return assumption.

Are conservative and optimistic cases predictions?

No. They simply move your expected return 2 percentage points down and up to show how sensitive the result is. Actual investment returns and inflation can be outside this range.

Why are the chart values in today’s money?

Nominal amounts decades from now are hard to compare. Dividing by cumulative inflation shows the same balances in today’s purchasing power, so the line and the required-savings marker are meaningful.

Retirement Reality Calculator — Will Savings Beat Inflation?

Retirement reality calculator

Check whether your savings can keep up with inflation and cover your spending in retirement.

Projected savings in today’s money, by age

Chart will appear once the inputs are valid.

Next: how inflation erodes a fixed pension →

How to use this calculator

Enter your ages and what you spend each month today.

Add your current savings, monthly contribution and the nominal return you expect.

Check the inflation rate and add any pension or other retirement income, in today’s money.

Compare projected savings with the savings required at retirement, and see the conservative and optimistic cases.

Why inflation changes the retirement maths

Your expenses keep rising after you retire, so the savings you need depend on real returns — investment growth after inflation — rather than the headline return. A 7% return with 5% inflation is a real return of about 1.9%, not 2%, and with high inflation the gap between the two matters more. To see how past investment returns compared with inflation, use Inflation vs Investment.

Methodology

Savings are projected month by month up to retirement. The savings required are the amount that funds inflation-adjusted spending, net of any pension or other income, from retirement to your life expectancy.

Real return

Real Return = ((1 + nominal return) ÷ (1 + inflation)) − 1

Expenses at retirement

Future expenses = Current expenses × (1 + inflation)^{years to retirement}

Required savings

Required = Σ over retirement years [ spending that year ÷ (1 + nominal return)^t ] (withdrawals at the start of each year)

Worked example

Return 7%, inflation 5%: real return = 1.07 ÷ 1.05 − 1 ≈ 1.9%.

Monthly expenses of 3,000 with 30 years to retirement and 3% inflation become about 7,282 a month at retirement.

Assumptions

Return and inflation are constant every year; actual returns vary and can be negative.
Contributions are made at the end of each month and optionally rise once a year by the percentage you enter.
Pension and other income are in today’s money and assumed to rise with inflation.
Withdrawals happen at the start of each retirement year, with savings earning the nominal return; no taxes or fees are included.
Conservative and optimistic cases use a return 2 percentage points lower and higher; inflation is unchanged.
Charts are shown in today’s money so the lines are comparable across ages.

Data source: national inflation comes from the IMF World Economic Outlook (April 2026). The 2026 value is an IMF projection, not a finalized figure. Category inflation (Personal Inflation calculator) is a 2026 estimate: US figures use BLS CPI sub-indices; other countries are informed estimates from IMF sector data, national statistical agencies and World Bank WDI. Everything the calculators output is an estimate built on the assumptions you enter.

Disclaimer: Inflation Compass calculators provide illustrative estimates based on the assumptions and data entered. Actual inflation, investment returns, expenses, pensions, and retirement outcomes can differ.

Will your savings keep up with inflation?