How to Calculate Retirement
What is Retirement?
Retirement calculators help plan for financial independence: projecting pension pot growth, calculating safe withdrawal rates, estimating state pension entitlement, and finding your FIRE number.
Formula
Step-by-Step Guide
- 1Target pot = Annual retirement income × 25 (4% rule)
- 2Project with: FV = PV×(1+r)ⁿ + PMT×[(1+r)ⁿ−1]/r
- 3State pension (UK 2024/25): £11,502.40/yr (full new state pension)
- 4USA full retirement benefit at age 67 (born after 1960)
Worked Examples
Frequently Asked Questions
What is Retirement?
Retirement calculators help plan for financial independence: projecting pension pot growth, calculating safe withdrawal rates, estimating state pension entitlement, and finding your FIRE number. Use this calculator for accurate, instant results.
How accurate is the Retirement calculator?
The calculator uses the standard published formula for retirement. Results are accurate to the precision of the inputs you provide. For financial, medical, or legal decisions, always verify with a qualified professional.
What units does the Retirement calculator use?
This calculator works with inches, British pounds, percentages. You can enter values in the units shown — the calculator handles all conversions internally.
What formula does the Retirement calculator use?
The core formula is: Target pot = Annual retirement income × 25 (4% rule). Each step in the calculation is shown so you can verify the result manually.