What could a retirement balance become with regular contributions?
A retirement projection compounds an existing balance and a stream of future contributions over a long horizon. Because the term is long, small changes in rate or contribution can create large differences.
Combining today’s balance with future deposits
Years of saving are retirement age minus current age. Current savings and fixed monthly contributions are then grown using a monthly rate derived from the entered annual return.
The illustrative monthly income applies a 4% annual withdrawal rate to the projected pot and divides it by 12. The model assumes constant returns and contributions and does not account for inflation, tax, fees or contribution timing changes.
Contributed capital versus modelled growth
Read the final balance together with total contributions. The gap between them is modelled growth, which is highly sensitive to rate and time assumptions.
Two compounding streams across the horizon
Years = Retirement age − Current agei = Annual return ÷ 100 ÷ 12, n = Years × 12Future = Saved × (1 + i)ⁿ + Monthly × [((1 + i)ⁿ − 1) ÷ i]Monthly income shown uses a 4% annual withdrawal rate.A long-term contribution projection
The default case grows current savings and repeated contributions for the entered number of years, then separates contributed money from projected growth.
Inflation and income questions outside the balance
A nominal ending balance does not show future purchasing power or sustainable retirement income. Inflation and withdrawal planning require separate calculations.
- The return and contribution remain constant for the full term.
- Contributions follow the timing shown in the formula.
- Inflation, tax, fees, salary changes and withdrawals are excluded.
Calculations related to retirement savings
The following tools examine neighbouring parts of the same calculation without changing the inputs or assumptions used above.
Quick answers
Frequently asked questions
What does the 4% monthly income figure mean?
It is the projected balance multiplied by 4% per year and divided by 12; it is not a guaranteed sustainable income.
Are retirement results adjusted for inflation?
No. The displayed future value is nominal under the entered return rate.
What happens if retirement age is below current age?
There is no positive saving period, so a meaningful forward projection cannot be produced.
Educational content only. This guide is not financial advice.