Use the Fidelity Investments retirement calculator to model how your current savings, contribution rates, and market returns could shape your future income.
This guide walks you through interpreting the results, linking each input to realistic retirement outcomes.
| Input Category | Key Variable | Description | Impact on Projected Income |
|---|---|---|---|
| Current Savings | Account Balance Today | Total value of your retirement accounts as of today | Higher balances generally support higher sustainable withdrawal levels |
| Contributions | Annual Contribution Rate | Planned yearly additions from your salary or other sources | Consistent, increased contributions can significantly extend portfolio longevity |
| Investment Returns | Expected Annual Return | Long-term average return assumption for your portfolio mix | Small changes in expected returns large affect projected income and longevity |
| Lifestyle & Timing | Target Retirement Age | Age at which you plan to stop full-time work | Earlier retirement typically requires larger savings or lower initial spending |
How the Fidelity Retirement Calculator Models Your Future Income
The Fidelity Investments retirement calculator applies time-value-of-money principles to show how your assets might evolve under different contribution and return scenarios.
By entering variables such as current balance, contribution amount, and target retirement age, the tool projects potential outcomes for portfolio value and estimated monthly income in retirement.
Adjusting Contribution Rates and Savings Behavior
The calculator helps you compare the long-term impact of increasing your contribution rate by even a small percentage each year.
Higher contributions today often lead to greater flexibility later, enabling you to maintain spending closer to your pre-retirement level while reducing sequence-of-returns risk.
Understanding Market Return Assumptions and Risk Levels
Choosing different expected return assumptions, such as 5 percent, 7 percent, or 9 percent, dramatically changes projected retirement income and portfolio longevity.
The tool can model conservative, moderate, and aggressive allocations so you can see how shifting between equities and fixed income affects both growth potential and downside risk.
Planning for Sequence of Returns and Withdrawal Rates
Sequence of returns risk becomes visible when you simulate poor market performance in the first years of retirement and observe how it affects withdrawal sustainability.
You can test different withdrawal rates, such as 3 percent or 4 percent of initial portfolio value, to understand how sensitive your plan is to market downturns early in retirement.
Refining Your Retirement Strategy with Fidelity Tools
- Start with your current balance and contributions, then iterate with different return and withdrawal assumptions.
- Use the output to decide whether to increase savings now, delay retirement, or adjust your asset allocation.
- Re-run the calculator annually or after major life events to keep your plan aligned with your goals.
- Treat the results as a guide rather than a prediction, and consider discussing outcomes with a financial professional.
FAQ
Reader questions
How accurate are the results from the Fidelity Investments retirement calculator?
The calculator provides scenario-based estimates, not guarantees, because actual returns, inflation, and personal circumstances can differ significantly from assumptions.
What happens if I enter an earlier target retirement age than my planned career end date?
The model will typically show a lower projected retirement income and a higher risk of outliving savings, because your assets must last longer while new contributions may stop earlier.
Can I factor in expected Social Security benefits into the projection?
Yes, many versions of the calculator allow you to input expected Social Security start ages and benefit amounts, which can substantially change your sustainable spending in retirement.
Should I run the calculator with multiple return assumptions to stress-test my plan?
Running scenarios with conservative, moderate, and optimistic return assumptions helps you understand the range of possible outcomes and decide how much cushion you truly need.