Easy-To-Use Retirement Calculator
Retirement Calculator
This is a free and simple retirement calculator you can use to get an estimate of how much you’ll need to save and invest for a comfortable future.
Federal Tax Brackets
Below is a list of federal tax rates based on income and filing status.
Single
- 10%: $0 to $11,000. 10% of taxable income.
- 12%: $11,001 to $44,725. $1,100 plus 12% of the amount over $11,000.
- 22%: $44,726 to $95,375. $5,147 plus 22% of the amount over $44,725.
- 24%: $95,376 to $182,100. $16,290 plus 24% of the amount over $95,375.
- 32%: $182,101 to $231,250. $37,104 plus 32% of the amount over $182,100.
- 35%: $231,251 to $578,125. $52,832 plus 35% of the amount over $231,250.
- 37%: $578,126 or more. $52,832 plus 35% of the amount over $231,250.
Married Filing Jointly
- 10%: $0 to $22,000. 10% of taxable income.
- 12%: $22,001 to $89,450. $2,200 plus 12% of the amount over $22,000.
- 22%: $89,451 to $190,750. $10,294 plus 22% of the amount over $89,450.
- 24%: $190,751 to $364,200. $32,580 plus 24% of the amount over $190,750.
- 32%: $364,201 to $462,500. $74,208 plus 32% of the amount over $364,200.
- 35%: $462,501 to $693,750. $105,664 plus 35% of the amount over $462,500.
- 37%: $693,751 or more. $186,601.50 + 37% of the amount over $693,750.
Taxes by State
Below is a list of taxes for each state, last updated June 2023
| State | Tax Rate (Average) | Standard Deduction - Single | Standard Deduction - Couple |
|---|---|---|---|
| Alabama | 2% - 5% | $3,000.00 | $8,500.00 |
| Alaska | 0.00% | $0.00 | $0.00 |
| Arizona | 2.50% | $13,850.00 | $27,700.00 |
| Arkansas | 0.9% - 6.9% | $2,270.00 | $4,540.00 |
| California | 1% - 13.3% | $5,202.00 | $10,404.00 |
| Colorado | 4.40% | $13,850.00 | $27,700.00 |
| Connecticut | 3% - 6.99% | $0.00 | $0.00 |
| Delaware | 2.2% - 6.6% | $3,250.00 | $6,500.00 |
| Florida | 0.00% | $0.00 | $0.00 |
| Georgia | 1% - 5.75% | $5,400.00 | $7,100.00 |
| Hawaii | 1.4% - 11% | $2,200.00 | $4,400.00 |
| Idaho | 5.80% | $13,850.00 | $27,700.00 |
| Illinois | 4.95% | $0.00 | $0.00 |
| Indiana | 3.15% | $0.00 | $0.00 |
| Iowa | 0.33% - 8.53% | $0.00 | $0.00 |
| Kansas | 3.1% - 5.7% | $3,500.00 | $8,000.00 |
| Kentucky | 4.50% | $2,770.00 | $5,540.00 |
| Louisiana | 2% - 6% | $0.00 | $0.00 |
| Maine | 5.8% - 7.15% | $13,850.00 | $27,700.00 |
| Maryland | 2% - 5.75% | $2,400.00 | $4,850.00 |
| Massachusetts | 5.00% | $0.00 | $0.00 |
| Michigan | 4.25% | $0.00 | $0.00 |
| Minnesota | 5.35% - 9.85% | $13,825.00 | $27,650.00 |
| Mississippi | 5.00% | $2,300.00 | $4,600.00 |
| Missouri | 1.5% - 5.4% | $13,850.00 | $27,700.00 |
| Montana | 1% - 6.9% | $5,540.00 | $11,080.00 |
| Nebraska | 2.46% - 6.84% | $7,900.00 | $15,800.00 |
| Nevada | 0.00% | $0.00 | $0.00 |
| New Hampshire | 0.00% | $0.00 | $0.00 |
| New Jersey | 1.4% - 10.75% | $0.00 | $0.00 |
| New Mexico | 1.7% - 4.9% | $13,850.00 | $27,700.00 |
| New York | 4% - 8.82% | $8,000.00 | $16,050.00 |
| North Carolina | 4.75% | $12,750.00 | $25,500.00 |
| North Dakota | 1.1% - 2.9% | $13,850.00 | $27,700.00 |
| Ohio | 0% - 4.797% | $0.00 | $0.00 |
| Oklahoma | 0.5% - 5% | $6,350.00 | $12,700.00 |
| Oregon | 5% - 9.9% | $2,605.00 | $5,210.00 |
| Pennsylvania | 3.07% | $0.00 | $0.00 |
| Rhode Island | 3.75% - 5.99% | $10,000.00 | $20,050.00 |
| South Carolina | 0% - 7% | $13,850.00 | $27,700.00 |
| South Dakota | 0.00% | $0.00 | $0.00 |
| Tennessee | 0.00% | $0.00 | $0.00 |
| Texas | 0.00% | $0.00 | $0.00 |
| Utah | 4.85% | $15,095.00 | $30,190.00 |
| Vermont | 3.35% - 8.75% | $6,500.00 | $13,050.00 |
| Virginia | 2% - 5.75% | $8,000.00 | $16,000.00 |
| Washington | 0.00% | $250,000.00 | $250,000.00 |
| West Virginia | 3% - 6.5% | $0.00 | $0.00 |
| Wisconsin | 4% - 7.65% | $12,760.00 | $23,620.00 |
| Wyoming | 0.00% | $0.00 | $0.00 |
Tips You’ll Need To Remember When Planning For Retirement
Retirement might feel like a distant reality for some of us, but the financial decisions we make today significantly influence our level of comfort when we decide to take a step back from the 9-to-5 grind. Planning for retirement can either be exciting or stressful depending on how prepared you are, but financial stability is possible. All you have to do is create a plan and get started with acting on it.
Part 1: The Basics of Retirement Planning
Retirement planning starts with understanding the basic principles. It's the process of defining your retirement income goals and making decisions on the actions and investment choices necessary to achieve the lifestyle you want when you’re older.
Why's Retirement Planning Important?
Retirement planning is important as it provides a plan you can follow so that you have enough funds when you’re older. With life expectancy on the rise, your retirement years could potentially span decades, making financial planning for this phase of your life something you can’t ignore.
And The Good News Is—It’s Never Too Late (or Early) to Start Saving for Retirement
Regardless of your current age, saving for retirement should be a priority. The power of compounding means that even small, regular contributions to your retirement fund can grow significantly over time. If you're starting late, don't worry. There are still strategies and catch-up contributions that can help boost your retirement savings.
Part 2: The Right Target For Your Retirement Savings
Knowing how much to save for retirement can be complex. It involves understanding your projected retirement expenses, assessing the impact of inflation, and estimating the return on your investments.
What is the Average Retirement Savings?
According to a report by The Hill, the average retirement savings for families currently sits above $100,000. This isn't enough for someone to live 1–2 years after their retirement age. So if you don’t want to end up in this situation in your 60s, you want to start working on building your retirement fund as soon as possible.
How Much Money is Needed for a Comfortable Retirement?
The amount needed for a comfortable retirement can be subjective, as it largely depends on your lifestyle, location, health, and other personal factors. However, many financial experts recommend aiming to replace about 70% - 80% of your pre-retirement income each year during retirement.
Part 3: Key Investment Vehicles for Retirement
Investment accounts such as a 401k or Roth IRA play a big role in your retirement savings. They offer tax advantages that can significantly boost your retirement fund.
The 401k: Free Money from Your Employer
A 401k is an employer-sponsored retirement plan that lets you save and invest a part of your paycheck before taxes are taken out. Taxes aren't paid until the money is withdrawn from the account.
What is the Maximum 401k Contribution Amount?
For 2023, the maximum amount of funds that you can contribute to a 401(k) is $22,500. These limits are occasionally adjusted for inflation.
What is an IRA?
An Individual Retirement Account (IRA) is a type of retirement account with tax benefits that people create because of the tax benefits. The two primary forms of IRAs are Traditional and Roth.
Traditional IRA: Tax-Deferred Savings
With a Traditional IRA, anything you contribute to this account may be tax-deductible, depending on your income and whether you or your spouse have a workplace retirement plan.
Roth IRA: Tax-Free Growth and Withdrawals
Unlike a Traditional IRA, Roth IRA contributions are made with after-tax dollars. This means you won't get a tax deduction for your contributions. However, the money grows tax-free, and qualified withdrawals in retirement are also tax-free.
Part 4: How To Use These Accounts
Having a clear understanding of where your money goes is also an important aspect of financial planning. It guarantees you can save for retirement.
“Where's My Money Going?”
Track your income and expenses to understand your spending habits. This practice not only helps you identify areas where you can cut back but also makes you aware of potential saving opportunities.
Automate Your Finances
Setting up automatic contributions to your retirement account ensures consistent savings. It also reduces the temptation to spend the money elsewhere.
Part 5: How to Increase Your Salary
Increasing your salary can significantly boost your retirement savings. It provides you with additional income to contribute towards your retirement plan, thereby accelerating the growth of your retirement fund.
Basic Negotiation Tactics for Asking for a Raise
Asking for a raise can be an intimidating prospect, but with the right preparation and strategy, you can improve your chances of success. Here are some basic negotiating tactics to consider:
- Do Your Research: Before approaching your employer for a raise, arm yourself with data. Use online tools to understand what others in your role and industry are making.
- Show Your Value: Be ready to present a clear case of the value you bring to your organization.
- Practice Your Pitch: Negotiating a raise isn’t the time to wing it. Write out what you plan to say and practice it.
- Be Prepared for Different Outcomes: Understand that a raise may not always be possible at the given time.
Part 6: What to Do If You Come Up Short in Your Retirement Savings
If you find yourself falling short in your retirement savings, don't panic. You can adjust your retirement plans, such as delaying retirement or reducing your retirement lifestyle expectations.
Creating Additional Income Streams
There are several ways to supplement your income as you approach or even after you enter your retirement years:
- Leverage Your Skills: Use your years of experience and skills to create an income source.
- Part-time Employment: Consider taking a part-time job that aligns with your interests or hobbies.
- Rent Out Property: If you have a spare room, consider renting it out.
- Invest in Dividend-Paying Stocks: Though this involves some risk, investing a portion of your savings in dividend-paying stocks can provide you with a regular income stream.
Part 7: Navigating De-Accumulation in Retirement
As you transition into retirement, your financial focus shifts from saving and investing to spending wisely. This period often referred to as the de-accumulation phase, involves strategically withdrawing from your retirement funds to ensure they last throughout your retirement years.
Understanding De-Accumulation
De-accumulation is the process of gradually spending down the retirement savings you've built up over your working years.
Developing a De-Accumulation Strategy
Your de-accumulation strategy will depend on various factors, including the amount of savings you have, your life expectancy, and your living expenses.
Part 8: Next Steps and Tools
Planning for retirement is an ongoing process that requires regular check-ins and adjustments as your life circumstances change.
Use Our Handy Tools
Leverage online tools such as our retirement planner calculator to estimate how much you need to save.
Remember, it's never too late to start planning for retirement. The important thing is to start now, regardless of your age or financial situation.