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Retirement Savings by Starting Age
The age you begin saving matters more than most people expect. Each extra year is a year of growth on every dollar already saved. This page lets you change the starting age and keep everything else the same.
The starting figures are age 28, $450 a month, a retirement age of 65 and a 6.5 percent return.
How the balance is worked out
The calculation runs month by month. The yearly return of 6.5 percent becomes a monthly rate of 0.5417 percent. Each month the balance grows by that rate and then the deposit of $450 is added. Every deposit keeps growing for the rest of the 37 years.
Worked example
Save $450 a month from 28 to 65. That is 444 deposits and $199,800 in total. At 6.5 percent the balance reaches $831,331.
Growth contributes $631,531. That is 76 percent of the balance.
Questions about this calculator
What if returns averaged 5 percent instead of 6.5 percent for $450 a month from age 28 to 65?
The $450 a month would reach $576,226 by age 65. That is $255,105 less than the $831,331 shown at 6.5 percent.
What is $831,331 worth after 37 years of inflation?
At 2.5 percent a year prices rise by a factor of 2.49. The $831,331 would then buy about as much as $333,419 does at the start.
What if you retired 3 years earlier, at 62, when saving $450 a month from age 28 to 65 at 6.5 percent?
The balance would be $669,726 instead of $831,331. That is $161,605 less.
What if you worked 3 years longer, to 68, when saving $450 a month from age 28 to 65 at 6.5 percent?
The balance would reach $1,027,629 instead of $831,331. That is $196,297 more.
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This page is for education only and is not financial or tax advice.