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.
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 |
1938 |
65 and 2 months |
1939 |
65 and 4 months |
1940 |
65 and 6 months |
1941 |
65 and 8 months |
1942 |
65 and 10 months |
1943–54 |
66 |
1955 |
66 and 2 months |
1956 |
66 and 4 months |
1957 |
66 and 6 months |
1958 |
66 and 8 months |
1959 |
66 and 10 months |
1960 and after |
67 |
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.
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.
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.
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.
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.