How much retirement income may my 401(k) provide?

It may surprise you how significant your retirement accumulation may become simply by saving a small percentage of your salary each month in your 401(k) plan. Further, it may be useful to estimate your future monthly income generated by these savings and what that means in today's dollars.

Common Assumptions

Years until retirement ?

How many years from now you plan to retire.

Current annual income ?

$

Your gross annual income today, used to size contributions and employer match.

Advanced options 1

Annual salary increases ?

%

Assumed yearly raise applied to your income between now and retirement.

10 Year Historic Inflation Rate. 10-year U.S. inflation average 2.9% 2015 0.1%, 2016 1.3%, 2017 2.1%, 2018 2.4%, 2019 1.8%, 2020 1.2%, 2021 4.7%, 2022 8.0%, 2023 4.1%, 2024 2.9% Source U.S. Department of Labor

Contribution Information

Current 401(k) balance ?

$

The amount already saved in your 401(k) today.

Current 401(k) plan contribution ?

%

The share of your gross pay you contribute to the plan each period.

Plan Information

Employer match (% of gross income) ?

%

The percentage of your gross income your employer contributes as a match.

Advanced options 4

Pay period frequency ?

How often you're paid, which sets how often contributions are added and compounded.

Annual before-tax return: conservative ?

%

Assumed annual investment return while saving, in the conservative scenario.

Table of Historic Rates of Return. Inflation 2.9%, U.S. Treasury Bills 3.3%, Long-term Government Bonds 5.0%, U.S. Large-Company Stocks 10.4%, and U.S. Small-Company Stocks 11.8%. Past performance is no guarantee of future results. Source: Ibbotson SBBI 1926-2024

Annual before-tax return: moderate ?

%

Assumed annual investment return while saving, in the moderate scenario.

Table of Historic Rates of Return. Inflation 2.9%, U.S. Treasury Bills 3.3%, Long-term Government Bonds 5.0%, U.S. Large-Company Stocks 10.4%, and U.S. Small-Company Stocks 11.8%. Past performance is no guarantee of future results. Source: Ibbotson SBBI 1926-2024

Annual before-tax return: aggressive ?

%

Assumed annual investment return while saving, in the aggressive scenario.

Table of Historic Rates of Return. Inflation 2.9%, U.S. Treasury Bills 3.3%, Long-term Government Bonds 5.0%, U.S. Large-Company Stocks 10.4%, and U.S. Small-Company Stocks 11.8%. Past performance is no guarantee of future results. Source: Ibbotson SBBI 1926-2024

Withdrawal Information

Years during retirement ?

How many years the balance needs to provide income once you stop working.

Advanced options 2

Return during retirement ?

%

Assumed annual investment return on the balance after you retire and begin withdrawals.

Table of Historic Rates of Return. Inflation 2.9%, U.S. Treasury Bills 3.3%, Long-term Government Bonds 5.0%, U.S. Large-Company Stocks 10.4%, and U.S. Small-Company Stocks 11.8%. Past performance is no guarantee of future results. Source: Ibbotson SBBI 1926-2024

Estimated inflation ?

%

Assumed annual inflation rate, used to express future income in today's dollars.

10 Year Historic Inflation Rate. 10-year U.S. inflation average 2.9% 2015 0.1%, 2016 1.3%, 2017 2.1%, 2018 2.4%, 2019 1.8%, 2020 1.2%, 2021 4.7%, 2022 8.0%, 2023 4.1%, 2024 2.9% Source U.S. Department of Labor

Enter your values and select Calculate.

The three cards above show a range, not a prediction: the same savings plan projected under a conservative, moderate, and aggressive assumed rate of return. The annual retirement income figure in each card is what that scenario's projected balance could pay out each year over your chosen withdrawal period; the present-value figure restates that income in today's purchasing power after inflation. There is no single right answer among the three - they exist to show how sensitive the outcome is to what the market does.

Two inputs move these results the most: your current contribution rate and the assumed rate of return before retirement. A small change in either one, run over decades until retirement, compounds into a large difference in the projected balance and income. Years until retirement and years of withdrawal also matter a great deal - more years to save, or fewer years to draw down, both raise the numbers.

This projection leaves out taxes on withdrawals, plan fees, changes in employer match policy, and any real-world swings in the market from year to year - actual returns are never a smooth constant. It also assumes you keep contributing at the same rate and that your income grows steadily at the assumed rate, which may not match how your career actually unfolds.

Treat this as a starting point to revisit, not a fixed target. It's worth rerunning after a raise, a change in contribution rate, a new job with a different match, or simply once a year to see how the picture has shifted. Bringing these numbers to a financial advisor alongside your other savings can help turn a range into a plan - and having run the numbers at all puts you ahead of where most people start.

This information may help you analyze your financial needs. It is based on information and assumptions provided by you regarding your goals, expectations and financial situation. The calculations do not infer that the company assumes any fiduciary duties. The calculations provided should not be construed as financial, legal or tax advice. In addition, such information should not be relied upon as the only source of information. This information is supplied from sources we believe to be reliable but we cannot guarantee its accuracy. Hypothetical illustrations may provide historical or current performance information. Past performance does not guarantee nor indicate future results.