What will your retirement look like?
Are you on the right path?
Give your investment strategy a checkup with the American Funds Retirement RoadmapSM.
Retirement is probably the most expensive thing you’ll ever pay for. Because of that, it may be difficult to put the amount you may need to save into perspective.
- How much would you be able to withdraw each year?
- Will you have saved enough money?
- How long will your savings last?
How much would you be able to withdraw each year?
Let’s assume:
- You’re ready to retire today and plan to have your retirement savings last 25 years.
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You’ve moved your savings into more conservative investments that you believe are appropriate for investing in retirement.
If you saved this amount...
...here’s how much you could withdraw annually for 25 years
$100,000 $7,823 $200,000 $14,645 $300,000 $23,468 $400,000 $31,291 $500,000 $39,113 $600,000 $46,936 $700,000 $54,759 $800,000 $62,581 $900,000 $70,404 $1,000,000 $78,227 Assumes a 6% annual rate of return in retirement and equal annual withdrawals at the end of each year. This example is for illustrative purposes and does not portray actual investment results.
Keep in mind that this example doesn’t account for inflation, which can have a big impact on your purchasing power. For example, if inflation were 4% a year, a withdrawal of $31,291 would only be worth $11,738 in today’s dollars 25 years from now.
Will you have saved enough money?
Many experts estimate that you’ll need 80% or more of your final annual salary each year in retirement. Social Security may only provide around 40% of what you need. And don’t forget that retirees typically have different types of expenses compared to people still in the workforce, such as increased health care and travel costs. Use our retirement planning calculator to estimate how much you’ll need.
How long will your savings last?
Enter your current (or expected) savings below and then adjust the withdrawal rate and rate of return to see how long your savings might last.
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The results of this calculator are for illustrative purposes and do not portray actual investment results. Your experience may differ. This illustration assumes the lump-sum, annual withdrawal amount is constant (final year may be less) and based on the original value of the account at retirement.
Return to topInvestors should carefully consider the investment objectives, risks, charges and expenses of the American Funds. This and other important information is contained in each fund’s prospectus and/or summary prospectus, which can be obtained from your plan’s financial professional or downloaded and should be read carefully before investing.