Retirement savings: turning monthly contributions into a future pot
Retirement planning starts with a simple question: will the money I save today be enough tomorrow? A pension calculator projects how your current savings and yearly contributions grow with compound interest until retirement, and how much annual income that pot can safely provide afterwards. It turns vague intentions into concrete numbers you can act on, regardless of whether you rely on a public pension, a private fund, or both.
TL;DR
- The calculator grows the current pension pot and annual contributions at the chosen return rate until the retirement age, using annual compounding
- Formula: Pot[n+1] = Pot[n] × (1 + r) + Contribution | Annual Income = Final Pot × 4%
- Example 1: €50,000 pot at 35, contributing €3,000/year until 67
How it works
The calculator grows the current pension pot and annual contributions at the chosen return rate until the retirement age, using annual compounding. It then converts the final pot into an annuity income using the 4% rule, withdrawing 4% of the capital per year in retirement preserves the principal for decades. The projection separates what you control (savings rate, retirement age) from what you do not (market returns, inflation).
The math
Each year, the pot grows by the return rate, and the yearly contribution is added. Repeating this until retirement produces the final capital. The sustainable withdrawal is then 4% of that capital per year, giving the annual retirement income from private savings. The total retirement income combines this with the state pension estimate.
The 4% rule is a widely cited safe withdrawal rate based on historical US market data from the Trinity Study.
Practical Pension Calculation Examples
Example 1: €50,000 pot at 35, contributing €3,000/year until 67
- 32 years of growth at 5%
- Projected pot: roughly €464,000
- Sustainable withdrawal at 4%: €18,560/year
- Plus the public pension, the total retirement income takes shape
Example 2: Delaying retirement by 5 years
- 5 extra years of contributions and growth
- Pot grows by roughly €145,000 more
- Annual income increases by about €5,800
- Working longer visibly boosts the pension income
When to use it
✦ Personal Retirement Planning
Savers project what their future pension fund and monthly contributions will be worth at retirement age, testing different contribution levels.
✦ Choosing Between Options
Workers compare increasing contributions, changing retirement age, or adjusting investment risk by seeing the effect on final income.
⚠ Common mistakes
- Overestimating Returns: Assumed returns of 8%+ ignore market volatility; prudent projections use 4-6% real returns.
- Forgetting Inflation: The projected income is in today euros only if inflation is subtracted from the return rate.
- Ignoring Fees: Annual fund fees of 1-2% silently reduce the final pot by tens of thousands over decades.
FAQ (6)
How much should I save for retirement?
A common guideline is saving 15% of gross income including employer contributions, but the right number depends on your target income.
What is the 4% rule?
Withdrawing 4% of your retirement pot per year is designed to make the money last 30+ years based on historical market returns.
If I type my salary or prices here, do you store them?
No — and that's deliberate. Everything runs locally in your browser, nothing leaves your device. We don't see your net salary, your margins, or the VAT numbers you test. For a finance tool that matters: you can run a quick check on a payslip or an invoice while on public Wi-Fi and close the tab knowing no trace is kept server-side.
Can I use it on the train without signal to check an invoice?
Yes. Load the page once, then it works offline. VAT, discount and mortgage math are all pure JavaScript — no API call. I often test it in airplane mode: open the mortgage page, type 250,000 at 4.5% for 25 years, you get the schedule instantly, even in a tunnel.
Can I file taxes with these results?
Use it as a fast sanity check, not as the final filing. Formulas are standard (e.g. Net = Gross / 1+VAT) and verified against official sources listed at the bottom, but rates and thresholds change — Italy's 22% vs Germany's 19%, or IRPEF brackets. For the actual declaration, double-check with your accountant or Agenzia delle Entrate / HMRC / IRS.
How do I send a calculation to my accountant?
Hit 'Share Link' under the results. It encodes the inputs in the URL — e.g. ?price=1200&vat=22 — so your accountant opens the exact same view, no screenshot needed. You can also copy the result with one tap and paste it into an email.
Sources & References
⚠ Financial Disclaimer
This tool provides estimates for informational purposes only and does not constitute financial, tax, or legal advice. Results may vary based on local regulations, rates, and individual circumstances. Always consult a qualified professional before making financial decisions.