Retirement Savings Calculator

Step-Up SIP means increasing your investment amount annually (usually with salary hikes). Instead of fixed $1,000/month forever, you increase by 10% each year. Impact: $1,000/month fixed at 10% for 30 years = $2.2M. $1,000/month with 10% annual step-up = $4.7M. That's more than double! The magic: You don't feel the increase because your salary grows too. A 10% raise → 10% higher investment means same lifestyle, massive wealth difference.

Employer match is free money added to your retirement. Common structures: 50% match up to 6%: If you contribute 6% of salary, employer adds 3%. 100% match up to 4%: If you contribute 4%, employer matches 4%. Dollar-for-dollar up to 6%: Most generous—6% + 6% = 12% total. Example: $8,000 salary, 6% contribution = $480/month. With 50% match = extra $240/month = $2,880/year free money. Over 30 years at 10%: $525,000 extra in your corpus!

Depends on time horizon and risk tolerance: Conservative (bonds/fixed): 5-6%. Moderate (60/40 mix): 7-8%. Growth (80/20 stocks): 9-10%. Aggressive (all stocks): 10-12%. For 30+ year horizons, 8-10% is reasonable based on historical S&P 500 returns. For 10-20 years, use 7-8% to be safer. Never assume 12%+ for serious planning—you'll likely fall short.

The 4% rule (Trinity Study) says you can withdraw 4% of your retirement corpus annually and not run out for 30 years. $1,000,000 corpus × 4% = $40,000/year = $3,333/month. Inverse calculation: Need $5,000/month? × 12 = $60,000/year ÷ 4% = $1,500,000 needed. Some experts now suggest 3.5% is safer with current bond yields. Our calculator shows both nominal and inflation-adjusted income.

Match your salary growth—typically 5-10%: Conservative: 5% (below average raises). Moderate: 7-8% (typical career growth). Aggressive: 10-15% (fast-track careers). The key: You won't feel the increase if it matches your raise. Getting 8% raise? Increase SIP by 8%. Same percentage of income, massive wealth difference. Over 30 years, 10% step-up creates 100%+ more wealth than flat SIP.

It grows significantly—make sure it stays affordable! Example: $1,000/month with 10% annual step-up. Year 10: $2,359/month. Year 20: $6,116/month. Year 30: $15,863/month. This sounds scary, but: Your income grew by 10% annually too! At year 30, your salary is 17x higher. The percentage of income stays same. If it becomes unaffordable, reduce step-up rate or use salary percentage mode.

Yes! Employer match is the best investment—100% instant return. Order of priority: (1) Contribute enough to get full employer match (free money). (2) Pay off high-interest debt (credit cards). (3) Build emergency fund (3-6 months). (4) Max out tax-advantaged accounts (401k, IRA, HSA). (5) Taxable investments. Never leave employer match on the table—it's 50-100% instant return before market even moves.

Inflation erodes purchasing power. $1M in 30 years at 3% inflation = $412K in today's dollars. Two approaches: (1) Plan in real terms: Use real return (nominal rate - inflation). 10% nominal - 3% inflation = 7% real return. (2) Inflate your target: If you need $50K/year today, you'll need ~$120K/year in 30 years. Our calculator shows both nominal and inflation-adjusted values to help you plan realistically.

It's never too late, but strategy differs: (1) Higher savings rate matters more than return rate at this stage. (2) Use catch-up contributions ($7,500 extra in 401k if 50+). (3) Consider working longer—each year adds contributions AND delays withdrawals. (4) Be aggressive with step-up (10-15% annually while income allows). (5) Focus on employer match—maximum free money. Starting at 45 vs 25 means saving 3-4x more monthly for same result. But it's absolutely achievable.

Early savings have more time to compound—they matter enormously. Example at 10% for 30 years: $50K today → $872K (17x growth). $500/month for 30 years → $1.1M (but you contributed $180K). The $50K head start created $872K with no additional effort. This is why: Start early, even with small amounts. Don't cash out 401k when changing jobs. Lump sums (bonuses, inheritances) should be invested immediately.