Can I Retire?

Can I Retire?

Retirement Projection Calculator

Your current age in years

The age you'll stop working and start drawing from savings

Total current savings and investments (in pounds)

Your expected annual expenses in retirement (in pounds)

Annual investment return percentage (5-7% is typical for balanced portfolios)

Expected annual inflation (2-3% is a common long-term assumption)

Age to plan for (UK life expectancy is around 81, but planning to 90+ is prudent)

Advanced Options

Expand sections below to add detailed inputs for more accurate projections.

Assumptions

Return Assumption

Portfolio returns are assumed to be 5% annually, compounded yearly. This does not account for market volatility or sequence of returns risk.

Inflation Assumption

Spending increases by 2.5% annually to account for inflation. Actual inflation may vary significantly over time.

Spending Model

Annual spending is assumed to be constant in real terms, adjusted only for inflation. This does not account for changes in spending patterns, major expenses, or healthcare costs in retirement.

What Is Not Included

  • Taxes on investment returns or withdrawals
  • Market volatility and sequence of returns risk
  • Healthcare costs or long-term care expenses
  • Social Security or pension income
  • Inheritance or windfall events
  • Changes in government policy or tax regimes

Important Disclaimer

This calculator provides projections based on the inputs and assumptions provided. It is not financial advice and should not be used as the sole basis for financial decisions. Consult with a qualified financial advisor before making retirement decisions.

Frequently Asked Questions

How do I calculate if I can retire?

To calculate if you can retire, you need to know your current savings, expected annual spending in retirement, planned retirement age, expected investment returns, inflation rate, and life expectancy. This calculator projects your portfolio balance over time to show when your savings might run out.

What is a safe withdrawal rate in retirement?

The traditional safe withdrawal rate is 4% annually, known as the 4% rule. However, this depends on your portfolio composition, time horizon, and market conditions. This calculator uses your specific inputs to project your actual withdrawal sustainability rather than applying a generic rule.

How much do I need to retire?

The amount you need to retire depends on your annual spending, expected investment returns, inflation, and how long you'll live. A common rule of thumb is 25x your annual expenses, but this calculator provides a personalized projection based on your specific situation.

What return rate should I use for retirement planning?

For retirement planning, a return rate of 5-7% is typical for a balanced portfolio. Conservative planners might use 4-5%, while more aggressive investors might use 7-8%. This calculator lets you adjust the return rate to see different scenarios.

About This Calculator

This free retirement calculator helps you determine when you can retire by projecting your portfolio balance over time. It calculates how long your savings will last based on your current age, planned retirement age, savings, annual spending, expected investment returns, inflation, and life expectancy.

Unlike simple pension calculators, this tool models portfolio depletion year by year, showing you exactly when your savings might run out. It's useful for retirement planning, FIRE (Financial Independence, Retire Early) calculations, and understanding how different variables like withdrawal rates and investment returns impact your retirement timeline.

The calculator is designed for UK residents but works globally. It uses pounds sterling (£) for currency, but the retirement planning principles apply regardless of where you live.

Read our methodology to understand how the calculations work and the assumptions made.