Savings Rate to Retire at 67 with Conservative 5% Return
Using a conservative 5% expected return, calculate the savings rate needed to retire at 67 for a 40-year-old earning $75,000.
How to use this tool
- Enter your current age and the age you want to retire.
- Add your current retirement savings and your annual income.
- Set the share of income you want to replace and an expected return.
- Read the required savings rate and annual savings to hit your target.
Conservative return assumptions require higher savings rates; this scenario uses 5% to reflect a bond-heavy or cautious investment allocation.
Frequently asked questions
- How much of my income should I save for retirement?
- It depends on your age, current savings, and goal. This calculator solves for the exact rate; a common rule of thumb is 15% of income, but starting later requires considerably more.
- Why does the required rate rise so fast if I start late?
- Compounding rewards time. With fewer years to grow, contributions do less of the work, so a much larger share of income is needed to reach the same target.
- What does a rate above 100% mean?
- It means the target is not reachable from income alone in the years remaining. You would need to retire later, lower the replacement goal, or rely on other income such as Social Security.
- Should I include Social Security?
- This tool counts only your own savings. If you expect Social Security or a pension, lower your replacement target to reflect the income those will provide.