Retirement Calculator: Military, 403(b), 457 & Monte Carlo

Retirement Calculator

Planning for retirement starts with one simple step—knowing how much money you will need and whether your current savings are enough. This retirement calculator helps you estimate future savings, plan contributions, and compare different retirement scenarios including 403(b), 457, military benefits, and early retirement ages. You can also use our
Investment Growth Calculator for a deeper look into long-term compounding.

retirement calculator chart

Retirement Projection Calculator (Estimate Your Future Savings)

A retirement projection calculator forecasts the value of your investments over time. It considers your expected return rate, current savings, monthly contributions, inflation, and retirement timeline. For accurate projections, compare your assumptions with market averages using our
Stocks, Bonds & ETFs 2025 Guide.

Input your current balance
Enter monthly/annual contributions
Choose an expected return rate (5–8% typical)
Set retirement age and inflation

This tool helps you determine:
Will your money last?
Are your contributions enough?
Should you invest more aggressively?
To build a diversified portfolio that supports long-term retirement growth, check our detailed Vanguard Investment Guide.

Retirement Military Calculator

The military retirement calculator estimates benefits based on service years, base pay, disability ratings, and retirement system (High-3 or BRS).

Key factors:

Years of active service
High-3 average basic pay
Multiplier (2.0% BRS or 2.5% legacy)
TSP contributions & matching

For service members building TSP + investment portfolios, tools like the
Best Investing Apps 2025 list can help optimize where your contributions grow.

Retirement Monte Carlo Simulation (Advanced Forecasting)

A Monte Carlo retirement simulation tests your retirement plan through thousands of market scenarios. Instead of using a single return rate, it runs multiple simulations with variable returns.

Why it matters:

Simulates both bull and bear markets
Shows the probability of running out of money
Estimates confidence levels (80%+ recommended)

For real-world inputs, try running the simulation alongside our
Vanguard Investment Guide 2025.

Retirement 4% Rule Explained

The 4% rule states that you can safely withdraw 4% of your investment portfolio during the first year of retirement, adjusted for inflation each year thereafter.

Example:
If you retire with $1,000,000 → safe withdrawal ≈ $40,000/year.

The rule works best for diversified portfolios. For safer cash buckets outside the market, consider options from our
Best High-Yield Savings Accounts 2025.

Retirement Savings Contribution Credit (Saver’s Credit)

The Retirement Savings Contribution Credit—also known as the Saver’s Credit—offers tax benefits to low and middle-income earners who contribute to retirement accounts such as 401(k), 403(b), IRA, or 457(b). This credit can reduce your tax bill by 10%–50% of your contributions, depending on income and filing status.

Available for IRA, 403(b), and 457 contributions
Helps boost savings for early retirement goals
Great for individuals earning under IRS income thresholds

How Much You Need to Retire

Retirement needs vary based on lifestyle, spending, location, investment return, and longevity. Below are common retirement targets.

Retiring With $3 Million

A $3M portfolio can typically generate $90,000–$120,000 per year using the 4% rule. If you are still building wealth, our guide on
Best Ways to Invest $100 is great for beginners.

Retiring at 55

Retiring at 55 requires enough savings to last 35–40 years. Health insurance and inflation are major risks. Conservative investors should explore
Investing in Bonds 2025.

Retiring at 60

Retiring at 60 reduces the gap before Social Security (62–67). Many retirees target $1M–$2M depending on lifestyle.

Retiring at 67

Age 67 is the full retirement age for Social Security, requiring less savings due to fewer retirement years.

Retirement Accounts

403(b) Retirement Plan

A 403(b) plan is a tax-advantaged retirement account for teachers, nonprofit employees, and public-sector workers.
Investments typically include Vanguard index funds—compare your options using our
Vanguard Investment Guide.

Tax-deferred growth
Traditional or Roth options
Higher contribution limits for older workers

457 & 457(b) Plan Explained

A 457(b) plan is for state and local government employees.
It offers unique benefits:

No early withdrawal penalties before 59½
High contribution limits
Tax-deferred growth

Some workers can contribute to both a 457 and 403(b)—doubling retirement savings.
Asset selection includes index funds found in our
Stocks, Bonds & ETFs Guide.

FAQs About Retirement Calculators

How accurate are retirement calculators?

They provide estimates, not guarantees. Accuracy improves when inputs include inflation, taxes, and market fluctuations.

What return rate should I use?

Most experts recommend using 5–7% long-term returns for balanced portfolios. Compare real expectations with our
Vanguard investing analysis.

Should I include Social Security?

Yes—adding Social Security benefits gives a more accurate projection.

Internal Resources

mf.faisalmohammed@gmail.com

Mohamed Faisal writes about money management, investing, and personal finance tools that help people grow their wealth.