Quick Analysis Assumptions

The quick analysis makes the assumptions listed below. To find out more about the assumptions, click on the assumption or scroll down. If you want to use your own estimates instead, run the detailed version of the calculator.


Retirement Age

The calculator assumes that retirement begins when you become eligible for full Social Security benefits. If you are older than full retirement age and still working, run the detailed version of the calculator. If you are married, the calculator assumes that retirement begins when the older spouse reaches full retirement age.

If you plan to retire earlier or later than your spouse, consider running the detailed version of the calculator separately for each spouse and indicating “Single.”

The following table shows the full retirement age for retired workers and spouses.The calculator rounds the full retirement age up to the nearest whole year.

Year of Birth

Full Retirement Age

1937 and before



65 and 2 months


65 and 4 months


65 and 6 months


65 and 8 months


65 and 10 months




66 and 2 months


66 and 4 months


66 and 6 months


66 and 8 months


66 and 10 months

1960 and after


       Source: Social Security Administration. If you were born on January 1, consider the previous year as your year of birth.
     * Full retirement age information for widows and widowers is slightly different.

Number of Years in Retirement

The calculator assumes that you will live 20 years in retirement. On average, a 67-year-old will spend about 20 years in retirement.

Desired Annual Income in Retirement

The calculator assumes that you will need 80% of your final year’s salary each year in retirement. Your needs could be higher or lower, but 80% is a common estimate used by financial professionals. The calculator will adjust the desired income to account for inflation and raises.

Federal Tax Bracket

The calculator applies a tax rate based on tax brackets for those filing as single or married filing jointly, as seen in the table below. If you file as head of household or as married filing separately, run the detailed version of the calculator and specify the tax rate. The calculator does not take state and local taxes into account. The calculator applies the federal tax rate to earnings on taxable investments. Tax rates may change in the future.

Federal income tax brackets for 2022*

Tax rate

Married, filing jointly
or qualified widow(er)


Head of household

Married, filing separately
































$647,851 and over

$539,901 and over

$539,901 and over

$323,926 and over


*This information is subject to change by the IRS.

Estimated Annual Social Security Benefit

The calculator estimates annual Social Security benefits as 40% of your salary in your final year of work (current salary adjusted for raises) up to the 2022 annual maximum of $40,140 per person. The calculator assumes that the spouse earning less receives 40% of his or her salary or half of the higher earning spouse’s Social Security benefit, whichever is greater.

The amount of Social Security benefits depends on a worker’s salary, the length of time spent contributing to Social Security and the age at which Social Security benefits begin. More accurate estimates are available from the U.S. Social Security Administration. You may have an estimate on your Social Security statement.

Years to Contribute

The calculator assumes that you will make estimated future annual contributions every year until retirement.

Hypothetical Growth Rate of Investments Before and After Retirement

The calculator assumes that the growth rate of your investments is 8% per year before retirement and 6% per year after retirement. Many financial professionals suggest planning for a lower growth rate in retirement because you may want to switch to a more conservative investing style as you grow older. The calculator does not account for post-retirement income taxes, which may apply to certain investments. Hypothetical growth rates are not intended to reflect actual results; your results may vary.


The calculator assumes an annual inflation rate of 4%. Over the past 50 years, the Consumer Price Index, a common measure of inflation, averaged about 4% a year.

Salary Raises

The calculator assumes a salary increase of 3% per year until retirement. The 3% increase is applied to the previous year’s salary.

Investments are not FDIC-insured, nor are they deposits of or guaranteed by a bank or any other entity, so they may lose value.

Investors should carefully consider investment objectives, risks, charges and expenses. This and other important information is contained in the fund prospectuses and summary prospectuses, which can be obtained from a financial professional and should be read carefully before investing.

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American Funds Distributors, Inc., member FINRA.

This content, developed by Capital Group, home of American Funds, should not be used as a primary basis for investment decisions and is not intended to serve as impartial investment or fiduciary advice.