About this tool
Why use this tool
The retirement simulator provides a simplified estimate of the pension income you can expect. It helps you assess whether Social Security alone will cover your desired lifestyle or if additional savings (401(k), IRA, taxable brokerage) are needed. Planning early makes an enormous difference thanks to compound growth.
How it works
The tool applies a Social Security replacement rate roughly aligned with SSA's PIA formula: about 40% of pre-retirement income for average earners, higher for lower earners, lower for higher earners. Full Retirement Age (FRA) is 67 for those born in 1960 or later; claiming at 62 reduces the benefit by roughly 30%, delaying to 70 increases it by roughly 24%.
Real example
A worker with average lifetime earnings of $60,000 per year retiring at FRA (67) can expect a Social Security benefit of roughly $24,000 per year, or $2,000/month. To maintain an 80% pre-retirement income target ($48,000), the retiree would need to draw an additional $24,000/year from 401(k)/IRA savings — implying a nest egg of $600,000 using the classic 4% withdrawal rule.
Practical tips
Check your SSA statement annually at ssa.gov. Max out employer 401(k) match first ("free money"), then a Roth IRA ($7,500 limit in 2026, $8,600 if 50+), then aim to save 15% of gross income for retirement. Consider Roth conversions in low-income years. Delay Social Security to 70 if you're healthy and can afford to — the 8%/year delayed retirement credits are hard to beat. Don't forget healthcare: Medicare starts at 65 but doesn't cover everything.
Disclaimer
This simulation is indicative and does not model employer pensions, 401(k) balances, IRA holdings, spousal benefits, WEP/GPO offsets or state pensions. Social Security rules and benefit formulas change over time. For a precise figure, use the SSA Retirement Estimator at ssa.gov/myaccount or consult a CFP fiduciary financial planner.