Retirement Savings Calculator

How Much Do You Need to Retire?

A widely used guideline is the 25× rule: save about 25 times the yearly amount you expect to spend from your savings. It comes from the "4% rule", based on research suggesting that withdrawing 4% of a diversified portfolio in the first year, and adjusting for inflation after that, has historically had a good chance of lasting 30 years. If you want €20,000 a year from your savings, the target is about €500,000.

That can sound like a lot, but this calculator turns it into a concrete monthly saving figure based on your age, current savings, time horizon and expected return. The earlier you start, the smaller that monthly figure becomes.

How This Calculator Works

Enter your current age and the age at which you plan to retire. Add your current retirement savings, such as funds, shares or a pension insurance set aside for retirement. Set your target amount and the annual return you expect. The calculator projects how much your existing savings will grow to, works out the remaining gap and calculates the fixed monthly saving needed to close it by your retirement date.

Why Starting Early Makes Such a Difference

Time is the strongest variable in retirement planning. A 25-year-old who saves €300 a month at 7% has about €787,000 at 65. A 35-year-old saving the same amount has about €366,000, less than half, despite saving for only ten years fewer. The first ten years of saving produce decades of extra growth.

In practice, starting small early almost always beats starting big later. If €100 a month is what you can afford now, start with that and raise it when your income grows.

Statutory Pension and Other Income

Your savings target only needs to cover the part of your spending that other income will not. In Finland, the earnings-related pension (työeläke) is based on your career earnings; you can check your accrued pension at tyoelake.fi, and Kela pays the national pension and guarantee pension if the earnings-related pension is small. In Sweden, you can see your expected public and occupational pension at minpension.se. Subtract your expected pension and other income from your planned yearly spending before you set your savings target.

Choosing a Realistic Return

The return you enter changes the result a great deal. As a rough guide: a bank savings account pays whatever the current deposit rate is, a mostly bond portfolio has historically returned about 3–5% a year, a balanced fund portfolio about 5–6%, and a global equity portfolio about 7–8% before inflation, with much larger swings from year to year.

For cautious planning, use 5–6%. To stress-test your plan, try 4% and see how much the monthly saving rises. Calculating with several rates shows you the range of possible outcomes rather than one uncertain figure.

Frequently Asked Questions

Should I adjust for inflation?

Yes. To work in today's money, subtract expected inflation, typically about 2%, from your return before entering it: instead of 7%, enter 5%. The monthly saving will be higher, but the target then keeps its real purchasing power.

What if the required monthly saving is too high?

Consider retiring a few years later, which both adds years of saving and shortens the time your money has to last. Look for ways to reduce your planned spending in retirement, or start with what you can afford and raise the amount whenever your income rises. Any amount saved now is better than waiting.

Should I pay off debt or save for retirement first?

Expensive debt, such as credit cards or consumer loans with high interest, usually costs more than investments can be expected to earn, so paying it off first is often the better choice. Low-interest mortgage debt is a closer call and depends on your expected return and your need for security. If your employer offers to match contributions to a voluntary pension scheme, take the full match.

How often should I review the plan?

At least once a year, and after any major change in your life, such as a new job, a higher salary, children or a change in expenses. Updating the figures every year keeps the plan on course while there is still time to adjust.

Practical Steps

Automate your saving so that it happens before you see the money. Use the tax-advantaged accounts available in your country, such as the equity savings account (osakesäästötili) in Finland or the investment savings account (ISK) in Sweden, and keep costs low by preferring low-fee index funds. As retirement approaches, gradually reduce risk by moving part of the portfolio from shares to safer investments.