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Assumptions & Methodology
AssumptionValueWhy
Growth rate7% nominal, compounded monthlyCommon long-run planning assumption. Your results will differ. Not a guarantee.
Target amount80% income ÷ 4% withdrawal = 20× incomeStandard income-replacement and safe withdrawal rate convention.
Inflation2.5%/yr applied to needed amountConsistent with nominal growth rate above.
Social SecurityExcluded entirelyPlan like it's a bonus. Whatever you collect is upside.
2026 catch-up limits401(k): +$8,000 (50+), +$11,250 (60–63) · IRA: +$1,100 (50+)IRS Notice 2025-67, IR-2025-111, Rev. Proc. 2025-19. Verified June 2026.
4% rule scopeAssumes ~30-year retirementBengen 1994 / Trinity Study 1998. Retiring 65–68 keeps this defensible.