Short answer: Saving $150,00 a month from age 30 to 65, with a sample return of 5.0% and inflation of 3.0%, you would build up about $99.610,83 in today’s purchasing power. That would let you withdraw about $500,37 a month for 20 years. To reach $600.00 a month (your target minus the pension you entered) you would need to contribute about $183,13 a month.
The preloaded values are an example: replace them with your own figures.
Estimated capital at retirement (in today’s money)
With these figures, saving $150,00 a month from age 30 to 65, with a sample return of 5.0% and inflation of 3.0%, you would build up about $99.610,83 in today’s purchasing power. That would let you withdraw about $500,37 a month for 20 years. To reach $600.00 a month (your target minus the pension you entered) you would need to contribute about $183,13 a month.
Savings growth (in today’s money)
| Age | Estimated balance |
|---|---|
| 35 years | $14.944,01 |
| 40 years | $25.891,68 |
| 45 years | $37.944,31 |
| 50 years | $51.213,44 |
| 55 years | $65.821,85 |
| 60 years | $81.904,71 |
| 65 years | $99.610,83 |
Results are for reference only and are not actual figures. Values depend on the country, the financial institution, taxes and current laws, and must be validated with an authorized financial institution. Banco.guru is an educational guide to what can be achieved; it does not offer products or personalized financial advice.
Tips for using this result
- Starting 5 years earlier can change the result more than increasing the contribution a lot.
- Use prudent returns: no investment guarantees a return.
- Check your work history and pension requirements with the official agency in your country.
- Recalculate every year or when your income changes.
How does this tool calculate?
It works in today’s money: it discounts inflation from the return to get a real return = (1 + return) ÷ (1 + inflation) − 1. With it, it projects your current savings and monthly contributions up to retirement age.
It then calculates what monthly withdrawal you could make over the years entered until the capital runs out, assuming the money keeps earning the same real return. If you enter a pension, it subtracts it from your target and calculates the required monthly contribution to cover the difference.
Does it include the IESS pension or other social security?
No, unless you enter it. Pensions depend on each country’s laws, your years of contributions and your earnings. In Ecuador, check your work history and requirements through the official IESS channels; in other countries, with their social security agency. This calculator is a tool for complementary personal savings.
Important assumptions
- Constant return and inflation (in reality they vary).
- No taxes or investment fees.
- Contributions at the end of each month.
That is why the result is an educational estimate. For investment decisions, consult a licensed advisor.
Frequently asked questions
Why is the result “in today’s money”?
So you can compare it with your current expenses. A million in 30 years won’t buy what it buys today.
What return should I enter?
A prudent one that fits your profile. No return is guaranteed; try several scenarios.
How much should I save to retire?
It depends on your age, your target and your pension. This tool gives you a reference figure for your situation.
Does it work for any country?
Yes, because it works with your figures. Change the currency above. Pension rules, however, depend on each country.
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