Retirement Calculator: Are You On Track, After Taxes?

Quick answer: how much do you need to retire?

Roughly 25 times the yearly spending your savings must cover, after Social Security. That's the "4% rule" turned around: Morningstar's research puts a safe starting withdrawal at 3.9% a year for a 30-year retirement (Morningstar), so every $10,000 a year you need from savings takes about $250,000. The calculator goes further: it works out your Social Security, your taxes and your savings path, and tells you how much you could spend each year after tax.

Example: a 35-year-old in Texas earning $75,000 with $50,000 saved, putting in 10% plus a 4% match, would have about $921,994 at 67 in today's dollars. With Social Security of about $3,056 a month, that supports about $76,277 a year after tax to age 95, against a goal of $49,274 (80% of today's take-home pay). On track.

How this calculator works

Every figure is in today's dollars, so $50,000 in the results buys what $50,000 buys now. Tax rules are 2026's.

Step 1: your spending goal

Rules of thumb say you'll need 70% to 80% of your pre-retirement pay; Fidelity's range is 55% to 80% (Fidelity). Those percentages are of gross pay. We use your take-home pay instead, because in retirement you no longer pay Social Security tax or save for retirement, and that's the money you actually live on. Choose a dollar amount if you've already budgeted retirement spending, and remember health costs: Medicare Part B alone is $202.90 a month in 2026 (CMS).

Step 2: Social Security, and when to claim

Social Security replaces a bigger share of pay for lower earners. The formula averages your highest 35 years of earnings (adjusted for wage growth) into a monthly figure, then pays 90% of the first $1,286, 32% up to $7,749 and 15% above that, for people turning 62 in 2026; for 2027 the bend points rise to $1,340 and $8,077 (SSA; SSA bend points). Earnings above the taxable maximum ($184,500 in 2026, $192,300 in 2027) don't count (SSA).

90% × first $1,286 + 32% × next $6,463 + 15% × the rest = monthly benefit at full retirement age

Steady pay of $75,000 for 35 years → $6,250 a month average → $2,745.80 a month at 67.

Claiming before your full retirement age (67 for anyone born in 1960 or later) cuts the benefit for life, by 5/9 of 1% a month for the first 36 months and 5/12 of 1% after that; waiting past 67 adds 8% a year until 70 (SSA; SSA).

Like the estimate on your SSA statement, ours is in today's dollars and assumes no future growth in national average wages, so it's likely conservative for younger workers. In the calculator your pay also grows 1% a year by default, which is why the worked example's benefit ($3,056 a month) is higher than the $75,000 row here. Gaps in work, fewer than 35 years or very uneven pay lower it. For your own record, use your statement at ssa.gov or SSA's Quick Calculator, and enter it in the calculator.

Will Social Security run out?

No, but it may pay less. The 2026 Trustees Report projects that the retirement trust fund runs out in late 2032; after that, payroll taxes still coming in would pay about 78% of scheduled benefits, falling slowly over time. Combined with the disability fund, depletion comes in 2034 with 83% payable (Social Security Trustees). Congress has changed the program before to avoid cuts, but you can choose "Plan for a cut" to see your plan at 78%. In the example above, that lowers sustainable spending from $76,277 to $69,717 a year.

Step 3: taxes in retirement

Many simple calculators ignore taxes. Ours doesn't: withdrawals from pre-tax 401(k)s and IRAs are taxed as income, and once your income passes $25,000 single or $32,000 joint (counting half your benefit), up to 85% of your Social Security becomes taxable too (IRS Publication 915). Those thresholds have never been raised for inflation, so they catch more retirees each year. Roth withdrawals are tax-free. Which account to use while you're working is a separate decision; the Roth vs traditional 401(k) calculator compares them.

Where you retire matters too. Illinois, Iowa (55 and older), Mississippi and Pennsylvania don't tax 401(k) withdrawals, nine states don't tax wages or 401(k) withdrawals (Washington's new tax on income over $1 million starts in 2028), and New York excludes up to $20,000 a year from age 59½. Choose "State you'll retire in" to see the difference.

How much should you have saved by age?

Fidelity assumes saving 15% of pay (with the match) from 25 and retiring at 67; T. Rowe Price gives ranges by income and assumes retiring at 65. They differ because their assumptions do.

These are checkpoints, not targets. Someone with a pension or who plans to work longer needs less; someone who retires early needs more. The calculator shows your own multiple next to Fidelity's milestone, but the "most you could spend" figure is the better test.

If you're behind: the levers that matter most

Take a 45-year-old earning $75,000 with $50,000 saved and putting in 6% with no match. At 67 they could spend about $47,572 a year after tax against a goal of $49,274.

• Save more: about 1.5% more of pay closes the gap. As a pre-tax contribution it costs about $34 of take-home pay per paycheck, less than the amount saved, because it lowers your tax.
• Work two more years and claim Social Security at 69: spending rises to $55,312 a year, because savings grow for longer, the benefit is 16% higher for life and there are fewer years to fund.
• Claim Social Security at 70 instead of 67: spending changes to $49,731 a year. The benefit is 24% higher for life, but savings must cover the years from 67 to 70.
• Use catch-up contributions from 50: an extra $8,000 a year in 2026, or $11,250 at ages 60 to 63 (IRS).
• Spend less, or move somewhere with lower taxes and living costs.

How long will your money last? The 4% rule

The 4% rule comes from William Bengen's 1994 study: withdrawing 4% of savings in the first year, then the same amount adjusted for inflation, lasted at least 30 years in every historical period he tested. Morningstar's 2026 estimate of a safe starting rate is 3.9% (Morningstar). Our calculator works differently: it finds the level spending that uses up your savings at your planning age at a steady return. Real returns aren't steady, so we also show what happens if your first five years in retirement lose 2% a year after inflation. A bad start hurts most because you're selling while prices are low.

What this calculator doesn't cover

• Required minimum distributions from pre-tax accounts (from 73, or 75 if born in 1960 or later), which can force larger taxable withdrawals.
• Medicare premiums and the income-based surcharges (IRMAA), and long-term care costs.
• Pensions, annuities, home equity and inheritances. To include a pension, lower your spending goal by its after-tax amount.
• Full retirement ages under 67 for people born before 1960, and the earnings test in detail: we start Social Security no earlier than your retirement age.
• Spousal and survivor Social Security rules beyond the spouse's benefit you enter, and investment fees.

Common questions

How much do I need to retire?

About 25 times the yearly spending your savings must cover after Social Security, based on a withdrawal rate near 4%. The calculator works it out with taxes included.

How much should I have saved for retirement by age 40?

Fidelity's milestone is three times your salary by 40; T. Rowe Price suggests 1.5 to 2.5 times. Your own target depends on when you retire and what you'll spend.

Is $1 million enough to retire?

At a 4% withdrawal rate, $1,000,000 supports about $40,000 a year before tax, on top of Social Security. Whether that's enough depends on your spending and taxes.

How much Social Security will I get?

It depends on your highest 35 years of earnings and when you claim. The calculator estimates it from your pay; your SSA statement is more accurate.

What's the best age to claim Social Security?

Waiting raises your benefit 8% a year from 67 to 70, which pays off if you live past your early 80s. Claiming early can make sense if you need the money or your health is poor.

Is Social Security going to run out?

The trust fund is projected to run out in late 2032, after which about 78% of benefits could still be paid from payroll taxes unless Congress acts.

Are 401(k) withdrawals taxed?

Pre-tax 401(k) and traditional IRA withdrawals are taxed as ordinary income; qualified Roth withdrawals aren't. Some states don't tax them.

What return should I assume?

Many planners use 4% to 5% a year after inflation for a stock-heavy portfolio while working and less in retirement. Lower assumptions are safer.

Sources

1. Primary insurance amount formula — Social Security Administration. Accessed October 15, 2026.
2. Benefit formula bend points — Social Security Administration. Accessed October 15, 2026.
3. Early or late retirement? — Social Security Administration. Accessed October 15, 2026.
4. Delayed retirement credits — Social Security Administration. Accessed October 15, 2026.
5. Contribution and benefit base — Social Security Administration. Accessed October 15, 2026.
6. 2026 Trustees Report: conclusion — Social Security Administration. Accessed October 15, 2026.
7. Quick Calculator — Social Security Administration. Accessed October 15, 2026.
8. Publication 915, Social Security and Equivalent Railroad Retirement Benefits — Internal Revenue Service. Accessed October 15, 2026.
9. 401(k) limit increases to $24,500 for 2026, IRA limit increases to $7,500 — Internal Revenue Service. Accessed October 15, 2026.
10. What's a safe retirement withdrawal rate for 2026? — Morningstar. Accessed October 15, 2026.
11. How much do I need to retire? — Fidelity. Accessed October 15, 2026.
12. How much should I save for retirement? — Fidelity. Accessed October 15, 2026.
13. You're age 35, 50 or 60: how much should you have by now? — T. Rowe Price. Accessed October 15, 2026.
14. Period life table (used in the 2026 Trustees Report) — Social Security Administration. Accessed October 15, 2026.
15. 2026 Medicare Parts A & B premiums and deductibles — Centers for Medicare & Medicaid Services. Accessed October 15, 2026.

Estimates in today's dollars under 2026 rules. We're not financial advisers. Research checked October 15, 2026.