Most retirement calculators use conservative assumptions — high inflation, no Social Security, aggressive savings targets — that can make your retirement number look far scarier than it needs to be. A calmer approach starts with just three inputs, shows a realistic range instead of a single scary number, and explains every assumption in plain English. You don't need $2 million. You need a plan that makes sense for your life.
If you've ever plugged your numbers into a retirement calculator and immediately wanted to close the tab, you're in good company. You're not imagining it — and you're not bad with money.
According to the Employee Benefit Research Institute's 2025 Retirement Confidence Survey, 1 in 3 American workers are not confident they'll have enough money for a comfortable retirement. A separate Bankrate survey from October 2025 found that 58% of workers say their retirement savings are behind where they should be, including 37% who describe themselves as significantly behind.
Those numbers are real, and the retirement planning anxiety behind them is rational. But here's where it gets interesting: the gap between what your calculator says you need and what you actually need can be enormous — 44% to 52% smaller once you adjust three assumptions most calculators don't explain clearly. Let's walk through why these tools can feel so discouraging, what the assumptions actually mean, and how to think about retirement planning without the panic.
Why retirement calculators make you feel terrible — and what to do instead
The problem starts with complexity — and the result can feel genuinely depressing. Only 52% of workers have even estimated how much monthly income they'd need in retirement, according to the EBRI. Most people never finish the exercise, and if you've ever felt too stressed to plan for retirement because of what a calculator showed you, you're responding normally to a tool that prioritizes thoroughness over usability. As of February 2026, major retirement calculators require 15 to 25 separate inputs: Fidelity asks for 16 fields, Empower walks you through 20 or more screens, and NerdWallet starts at 12 minimum. Each unfilled field is another reason to quit.
Here's what the research says about why that matters.
Behavioral finance research explains why this matters. Professor Shlomo Benartzi at UCLA Anderson and economist Richard Thaler demonstrated through the Save More Tomorrow program that tool design dramatically affects financial behavior — enrollment in one employer's retirement plan jumped from 25% to 88% simply by changing how choices were presented. Simpler tools produce better outcomes. Yet most retirement calculators do the opposite: they ask for dozens of inputs, produce a single large number, and leave you staring at a figure that feels impossible.
Here's the thing: that large number often reflects conservative assumptions rather than your actual situation. These calculators tend to err on the side of caution — which is understandable from a liability perspective, but can create unnecessary anxiety. Fidelity Wealth Services charges a gross advisory fee of 0.50% to 1.50% AUM with a $500,000 minimum, so there's also a natural connection between a tool that surfaces a big gap and advisory services that help close it. That connection isn't inherently wrong — advisory services genuinely help many people — but it's worth understanding as you evaluate your results.
That doesn't mean the people at these firms are acting in bad faith — and advisory services deliver real, measurable value for many households. Good financial advice can deliver measurable benefits: behavioral coaching alone may be worth ~1.5% annually according to Vanguard's Advisor's Alpha research. The key is separating the calculator's assumptions from the advisory question — and evaluating each on its own merits.
Try the Calm Retirement Planner — 3 inputs, a realistic range, and every assumption explained. See where you stand on Truthifi.
The Calm Retirement Planner
What if a retirement calculator started with just three questions: your age, your current savings, and how much you're saving each month?
That's the idea behind Truthifi's Calm Retirement Planner. Instead of demanding 15 to 25 inputs upfront, it starts with three — then lets you add detail only if you want to. Instead of producing a single scary number, it shows a range of three scenarios (conservative, moderate, optimistic) with every assumption explained in plain English. And instead of ending with a single next step, it ends with your numbers — so you can decide whether you need professional guidance, a deeper dive, or just reassurance that you're closer than you thought.
And here's a number most calculators leave out entirely.
The average monthly Social Security retirement benefit as of January 2026 is $2,071, following a 2.8% cost-of-living increase. The maximum benefit at full retirement age is $4,152 per month — and $5,181 at age 70. Any calculator that ignores Social Security is ignoring income that 94% of retirees actually receive, according to EBRI and the SSA. The Calm Retirement Planner includes it by default, because leaving it out inflates your target by $600,000 or more.
Your free financial health score goes further — running diagnostics across your full financial picture, not just retirement savings in isolation.
Why calculator results feel impossible: debunking the assumptions
Same person. Same life. Two calculators. Two wildly different answers. The difference is three assumptions.
Consider a household earning the median income of $83,730 (Census Bureau, 2024). Here's what two different approaches produce:
What changed | "Scary" calculator | "Realistic" calculator |
|---|---|---|
Income replacement target | 80% of income = $66,984/yr | |
Social Security income | $0 (excluded) | $24,852/yr (average benefit) |
Net savings withdrawal needed | $66,984/yr | $36,580/yr |
Withdrawal rate | 4.0% | 3.9% (Morningstar, Dec 2025) |
Total savings "needed" | $1,674,600 | $937,949 |
With spending decline pattern | N/A | ~$800,000–$850,000 |
So what does this actually mean for your retirement number?
The scary number is 44% to 52% higher than reality. The difference isn't your fault — it's the calculator's assumptions. The number that scared you might be based on inflated assumptions — here's why those "scary" numbers might not apply to you and what to use instead.
Let's break down the three assumptions that change everything.
Assumption 1: How much you'll spend. The Bureau of Labor Statistics reports that average annual spending for households headed by someone 65 or older was $61,432 in 2024, compared to $78,535 for all consumer units — a 22% decline. Most calculators assume you'll need 80% to 100% of your pre-retirement income. Research shows it's closer to 78%, and spending follows a "smile" pattern: higher early in retirement, declining through the middle years, and potentially rising late for healthcare.
Assumption 2: Whether Social Security counts. According to the SSA, 94% of retirees receive Social Security benefits, with 66% calling it a "major" income source. Any calculator that excludes Social Security is excluding an average of $24,852 per year — which, at a 4% withdrawal rate, is equivalent to $621,300 in savings you don't actually need.
Assumption 3: What inflation rate the calculator uses. Many calculators assume 4% or higher inflation. The Social Security Administration's own COLA data shows an average of approximately 3.1% over the past decade, and the long-term 30-year historical CPI average sits around 2.5% to 3.0%. If your calculator used 4%, it was working with a number meaningfully higher than the decade-long average.
And here's where Fidelity's own numbers add useful context.
Fidelity's widely cited 10x-income rule says the median earner needs about $837,300. But Fidelity's own methodology targets only 45% income replacement from savings — Social Security covers the rest. When you apply Fidelity's own 45% target and subtract estimated Social Security, the actual savings need for a median earner is approximately $320,000 to $520,000 — 38% to 62% of the headline number. The 10x rule isn't wrong, exactly. It's just a shortcut that can feel alarming without the important context — that Fidelity's own methodology assumes Social Security covers a significant portion of retirement income.
Morningstar's December 2025 research by Amy Arnott, Christine Benz, and Jason Kephart offers an additional insight: while the safe starting withdrawal rate for 2026 is 3.9% (90% success, 30-year horizon), flexible withdrawal strategies push that rate to nearly 6%. As Benz has noted, retirees who are willing to adjust spending in down markets can safely spend significantly more than the rigid 4% rule suggests.
See how your numbers compare — and why they're different from what other calculators told you. Try the Calm Retirement Planner.
Most retirement calculators use conservative assumptions — high inflation, no Social Security, aggressive savings targets — that can make your retirement number look far scarier than it needs to be. A calmer approach starts with just three inputs, shows a realistic range instead of a single scary number, and explains every assumption in plain English. You don't need $2 million. You need a plan that makes sense for your life.
If you've ever plugged your numbers into a retirement calculator and immediately wanted to close the tab, you're in good company. You're not imagining it — and you're not bad with money.
According to the Employee Benefit Research Institute's 2025 Retirement Confidence Survey, 1 in 3 American workers are not confident they'll have enough money for a comfortable retirement. A separate Bankrate survey from October 2025 found that 58% of workers say their retirement savings are behind where they should be, including 37% who describe themselves as significantly behind.
Those numbers are real, and the retirement planning anxiety behind them is rational. But here's where it gets interesting: the gap between what your calculator says you need and what you actually need can be enormous — 44% to 52% smaller once you adjust three assumptions most calculators don't explain clearly. Let's walk through why these tools can feel so discouraging, what the assumptions actually mean, and how to think about retirement planning without the panic.
Why retirement calculators make you feel terrible — and what to do instead
The problem starts with complexity — and the result can feel genuinely depressing. Only 52% of workers have even estimated how much monthly income they'd need in retirement, according to the EBRI. Most people never finish the exercise, and if you've ever felt too stressed to plan for retirement because of what a calculator showed you, you're responding normally to a tool that prioritizes thoroughness over usability. As of February 2026, major retirement calculators require 15 to 25 separate inputs: Fidelity asks for 16 fields, Empower walks you through 20 or more screens, and NerdWallet starts at 12 minimum. Each unfilled field is another reason to quit.
Here's what the research says about why that matters.
Behavioral finance research explains why this matters. Professor Shlomo Benartzi at UCLA Anderson and economist Richard Thaler demonstrated through the Save More Tomorrow program that tool design dramatically affects financial behavior — enrollment in one employer's retirement plan jumped from 25% to 88% simply by changing how choices were presented. Simpler tools produce better outcomes. Yet most retirement calculators do the opposite: they ask for dozens of inputs, produce a single large number, and leave you staring at a figure that feels impossible.
Here's the thing: that large number often reflects conservative assumptions rather than your actual situation. These calculators tend to err on the side of caution — which is understandable from a liability perspective, but can create unnecessary anxiety. Fidelity Wealth Services charges a gross advisory fee of 0.50% to 1.50% AUM with a $500,000 minimum, so there's also a natural connection between a tool that surfaces a big gap and advisory services that help close it. That connection isn't inherently wrong — advisory services genuinely help many people — but it's worth understanding as you evaluate your results.
That doesn't mean the people at these firms are acting in bad faith — and advisory services deliver real, measurable value for many households. Good financial advice can deliver measurable benefits: behavioral coaching alone may be worth ~1.5% annually according to Vanguard's Advisor's Alpha research. The key is separating the calculator's assumptions from the advisory question — and evaluating each on its own merits.
Try the Calm Retirement Planner — 3 inputs, a realistic range, and every assumption explained. See where you stand on Truthifi.
The Calm Retirement Planner
What if a retirement calculator started with just three questions: your age, your current savings, and how much you're saving each month?
That's the idea behind Truthifi's Calm Retirement Planner. Instead of demanding 15 to 25 inputs upfront, it starts with three — then lets you add detail only if you want to. Instead of producing a single scary number, it shows a range of three scenarios (conservative, moderate, optimistic) with every assumption explained in plain English. And instead of ending with a single next step, it ends with your numbers — so you can decide whether you need professional guidance, a deeper dive, or just reassurance that you're closer than you thought.
And here's a number most calculators leave out entirely.
The average monthly Social Security retirement benefit as of January 2026 is $2,071, following a 2.8% cost-of-living increase. The maximum benefit at full retirement age is $4,152 per month — and $5,181 at age 70. Any calculator that ignores Social Security is ignoring income that 94% of retirees actually receive, according to EBRI and the SSA. The Calm Retirement Planner includes it by default, because leaving it out inflates your target by $600,000 or more.
Your free financial health score goes further — running diagnostics across your full financial picture, not just retirement savings in isolation.
Why calculator results feel impossible: debunking the assumptions
Same person. Same life. Two calculators. Two wildly different answers. The difference is three assumptions.
Consider a household earning the median income of $83,730 (Census Bureau, 2024). Here's what two different approaches produce:
What changed | "Scary" calculator | "Realistic" calculator |
|---|---|---|
Income replacement target | 80% of income = $66,984/yr | |
Social Security income | $0 (excluded) | $24,852/yr (average benefit) |
Net savings withdrawal needed | $66,984/yr | $36,580/yr |
Withdrawal rate | 4.0% | 3.9% (Morningstar, Dec 2025) |
Total savings "needed" | $1,674,600 | $937,949 |
With spending decline pattern | N/A | ~$800,000–$850,000 |
So what does this actually mean for your retirement number?
The scary number is 44% to 52% higher than reality. The difference isn't your fault — it's the calculator's assumptions. The number that scared you might be based on inflated assumptions — here's why those "scary" numbers might not apply to you and what to use instead.
Let's break down the three assumptions that change everything.
Assumption 1: How much you'll spend. The Bureau of Labor Statistics reports that average annual spending for households headed by someone 65 or older was $61,432 in 2024, compared to $78,535 for all consumer units — a 22% decline. Most calculators assume you'll need 80% to 100% of your pre-retirement income. Research shows it's closer to 78%, and spending follows a "smile" pattern: higher early in retirement, declining through the middle years, and potentially rising late for healthcare.
Assumption 2: Whether Social Security counts. According to the SSA, 94% of retirees receive Social Security benefits, with 66% calling it a "major" income source. Any calculator that excludes Social Security is excluding an average of $24,852 per year — which, at a 4% withdrawal rate, is equivalent to $621,300 in savings you don't actually need.
Assumption 3: What inflation rate the calculator uses. Many calculators assume 4% or higher inflation. The Social Security Administration's own COLA data shows an average of approximately 3.1% over the past decade, and the long-term 30-year historical CPI average sits around 2.5% to 3.0%. If your calculator used 4%, it was working with a number meaningfully higher than the decade-long average.
And here's where Fidelity's own numbers add useful context.
Fidelity's widely cited 10x-income rule says the median earner needs about $837,300. But Fidelity's own methodology targets only 45% income replacement from savings — Social Security covers the rest. When you apply Fidelity's own 45% target and subtract estimated Social Security, the actual savings need for a median earner is approximately $320,000 to $520,000 — 38% to 62% of the headline number. The 10x rule isn't wrong, exactly. It's just a shortcut that can feel alarming without the important context — that Fidelity's own methodology assumes Social Security covers a significant portion of retirement income.
Morningstar's December 2025 research by Amy Arnott, Christine Benz, and Jason Kephart offers an additional insight: while the safe starting withdrawal rate for 2026 is 3.9% (90% success, 30-year horizon), flexible withdrawal strategies push that rate to nearly 6%. As Benz has noted, retirees who are willing to adjust spending in down markets can safely spend significantly more than the rigid 4% rule suggests.
See how your numbers compare — and why they're different from what other calculators told you. Try the Calm Retirement Planner.
The smartest money move you can make? Run a wellness check.
Truthifi® tests your finances for 100+ risks and opportunities—automatically. Unlock plain-English insights that drive smarter financial decisions today.
The smartest money move you can make? Run a wellness check.
Truthifi® tests your finances for 100+ risks and opportunities—automatically. Unlock plain-English insights that drive smarter financial decisions today.
The smartest money move you can make? Run a wellness check.
Truthifi® tests your finances for 100+ risks and opportunities—automatically.
Which calculator should you trust? Honest tool reviews
Every major free retirement calculator has a business model — and understanding that model actually helps you get more value from these tools, whether you choose advisory services or not.
Here's the important context: financial advice can be genuinely worth the cost. Vanguard's research estimates that comprehensive financial advice adds approximately 3% in net value annually — meaning a $500,000 portfolio could gain roughly $15,000 per year in advisory value. So when a calculator connects to advisory services charging $2,500 to $4,450 per year, the math can work in your favor. Over 20 years, a user with a $500,000 portfolio would pay an estimated $50,000 at Fidelity (0.50% AUM) or $89,000 at Empower (0.89% AUM) — but if the advice delivers even half of Vanguard's estimated value, the net benefit is substantial. The question is whether you're making that choice with full visibility into both sides of the equation.
Here's what the business model looks like behind each platform.
Fidelity offers a well-built calculator with its 10x-income benchmark. The calculator connects to Fidelity Wealth Services, which charges 0.50% to 1.50% AUM with a $500,000 minimum. On a $500,000 portfolio, that's $2,500 to $7,500 per year — $50,000 to $150,000 over 20 years. Fidelity's advisory services bundle portfolio management, tax-smart strategies, and dedicated planning support — and for investors with complex financial lives, that bundled relationship can deliver value that significantly exceeds the fee.
Empower provides a comprehensive free dashboard that evolved from the Personal Capital acquisition. Empower Personal Wealth surpassed $100 billion in assets under advisement by August 2025, with 1,500+ financial advisors. Their Personal Strategy advisory fee starts at 0.89% AUM with a $100,000 minimum. The free tools are paired with optional access to guidance and advice from experienced financial advisors — a model that works well for investors who want both self-service tools and professional support.
NerdWallet earned $183.8 million in total revenue in 2024, up 37% year-over-year, primarily from referral partnerships with financial product providers. NerdWallet discloses this clearly on its site. Their content is editorially independent, but understanding the referral model helps you evaluate recommendations in context.
SmartAsset operates an Advisor Marketing Platform (AMP) that delivers 120 to 540 referrals per year to subscribing advisors, at an estimated effective cost of approximately $200 or more per lead, according to industry analysis.
Truthifi charges a flat subscription — no AUM fees, no commissions, no referral revenue. Total cost over 20 years: approximately $2,400 to $4,800. Truthifi can't manage your money — but it can show you what the numbers mean. That's the core difference in the model: Truthifi earns the same amount whether you invest $50,000 or $5 million, which means its analysis isn't influenced by your portfolio size.
Good advisors welcome transparency — and many actively encourage their clients to understand fee structures and use independent tools. Whether you work with an advisor or plan independently, understanding how each platform's model works helps you make better decisions. If you want an independent starting point, try a retirement readiness assessment that shows your numbers without a sales conversation. Or see exactly what you're paying in fee with Truthifi's Fee X-Ray — a tool many advisors recommend to their own clients.
What you actually need to know (and can ignore)
Here's what matters more than a single scary number.
Your actual spending is the foundation. Not your income. Not a rule of thumb. Your real annual expenses, minus what disappears in retirement (commuting, work clothes, payroll taxes, retirement contributions). For most people, this produces a number meaningfully lower than the 80% to 100% replacement ratio calculators assume.
Median retirement savings are more relevant than averages. The Federal Reserve's 2022 Survey of Consumer Finances shows the median (typical) retirement savings for ages 65 to 74 is $200,000 — while the average is $609,230. The average is inflated by a small number of very wealthy households. Which number feels closer to your reality?
Age group | Median retirement savings |
|---|---|
Under 35 | ~$18,880 |
35–44 | ~$45,000 |
45–54 | ~$115,000 |
55–64 | ~$185,000 |
65–74 | ~$200,000 |
Let's put that gap in daily terms.
The gap is smaller than you think — and manageable per day. For a 40-year-old with median savings of $115,000, closing the gap to a reasonable $500,000 target requires roughly $370 to $650 more per month than they're currently saving — or about $12 to $22 per day. That's a latte and a lunch, not a lifestyle overhaul. Starting earlier makes it cheaper: a 30-year-old needs about $420 more per month for the same target.
What you can safely spend less energy on: the exact inflation rate 30 years from now, precise market return projections, and whether you need exactly $1,247,000 or $1,253,000. Those numbers create false precision. Focus on the inputs you can control — your savings rate, your spending, and whether you're capturing your employer match (if you have one).
For a deeper look at whether your savings will carry you through retirement, find out how long your savings will actually last. And when you're ready for professional guidance, a one-time fee-only consultation ($200–$500) can provide a professional plan without ongoing fees. Get your free financial health score to see where you stand today.
Get your free Truthifi Score — it takes 2 minutes and nobody will call you afterward. See where you stand.
FAQ: Retirement calculators
Why do retirement calculators give different answers?
Different calculators use different assumptions about inflation, investment returns, Social Security, and how long you'll live. Change any one of those inputs and the output changes dramatically. The three biggest variables are whether the calculator includes Social Security, what income replacement percentage it assumes (45% vs. 80% vs. 100%), and what inflation rate it uses (2.5% vs. 4%).
Why does my retirement calculator say I need $2 million?
It's likely using the 10x-income rule, ignoring Social Security, and assuming you'll spend 80% to 100% of your current income in retirement. But Bureau of Labor Statistics data shows most retirees spend about 78% of pre-retirement levels, 94% receive Social Security averaging $2,071 per month, and Fidelity's own methodology targets only 45% replacement from savings. The realistic number is often 40% to 55% lower.
Are retirement calculators accurate?
They're as accurate as their assumptions — and most use conservative assumptions that produce a larger number than you may actually need. A calculator that ignores Social Security, assumes 4% inflation, and targets 100% income replacement will always produce a scary result. That's not a flaw — it's a conservative methodology. Look for calculators that show you a range and explain every assumption.
What is the simplest retirement calculator?
The best simple calculators need just 3 to 5 inputs (age, savings, monthly contribution), show a range of outcomes rather than one number, and explain every assumption in plain English. Calculators that require 15 or more inputs may be gathering data for more than just your retirement projection — worth knowing, even if the advisory services they connect to are genuinely valuable.
Do I need a financial advisor or just a retirement calculator?
Many investors with portfolios under $500,000 find that a good calculator and basic financial literacy meet their planning needs. But for many others, working with an advisor is one of the best financial decisions they'll make. Advisors add clear value for complex situations — multiple income sources, business ownership, estate planning, or tax optimization — and the behavioral coaching component alone keeps investors from making costly emotional decisions during market downturns. Research from Vanguard suggests good financial advice can add approximately 3% in net returns through behavioral coaching, tax management, and rebalancing — which can more than offset the advisory fee for many households. A one-time fee-only consultation ($200 to $500) provides a professional plan without locking into ongoing AUM fees of 0.50% to 1.50%.
What is a Monte Carlo simulation in retirement planning?
A Monte Carlo simulation runs your retirement plan through thousands of random market scenarios — some with crashes, some with booms, most somewhere in between — to calculate the probability your money lasts. A "90% success rate" means 9 out of 10 simulated futures didn't run out of money. It's more realistic than a single fixed projection.
Is the 4% rule still valid?
Broadly yes, with adjustments. William Bengen's 1994 research established the 4% rule as a conservative floor for 30-year retirements. Morningstar's 2025 analysis suggests 3.9% as a safe starting rate for 2026, with flexible strategies pushing it to nearly 6%. Most retirees can safely spend more if they're willing to adjust in down markets.
What assumptions do retirement calculators use?
Most calculators use five core assumptions: inflation rate (typically 2.5% to 4%), investment return (5% to 8% nominal), life expectancy (85 to 95), income replacement ratio (45% to 100% of pre-retirement income), and whether Social Security is included. Changing any single assumption can shift the output by hundreds of thousands of dollars.
What does "retirement calculator says I can never retire" actually mean?
It means the calculator's assumptions are too aggressive for your situation — not that you're doomed. If it assumed 100% income replacement, 4% inflation, no Social Security, and retirement at 62, any middle-income earner would "fail." Try adjusting to actual spending levels, including Social Security, and using a more realistic inflation rate. The answer usually changes dramatically.
How do I start retirement planning if I feel overwhelmed?
Many financial educators suggest starting with one number: your current savings. Then one question: how much are you saving monthly? Everything else can wait. From there, the most important next step is understanding whether your employer offers a match (free money) and whether you're contributing enough to get it. A 3-input calculator can show you a realistic range in under two minutes.
Is Fidelity's retirement calculator reliable?
Fidelity's calculator is well-built and uses its 10x-income benchmark, which assumes 45% income replacement from savings. The headline number can feel alarming without that context. The calculator also connects users to Fidelity Wealth Services advisory (0.50% to 1.50% AUM, $500,000 minimum) — which, for investors with complex needs, can be a strong option. Fidelity's advisory services have earned strong client satisfaction ratings and deliver comprehensive planning. The main thing to know is that the calculator's conservative assumptions don't mean you're in trouble — they mean you should look at the assumptions before drawing conclusions.
What is a realistic retirement number?
It depends on your spending, not your income. The most reliable method: multiply your expected annual retirement spending by 25 (based on the 4% rule). If you expect to spend $50,000 per year and Social Security covers $25,000, you need $625,000 in savings ($25,000 gap × 25). That's often far less than the "10x income" headlines suggest.
Read next from the Truthifi blog
Will my retirement savings last? — Find out how long your savings will actually last
Am I behind on retirement savings? — Why those "scary" benchmarks might not apply to you
Retirement Readiness Score — An independent retirement readiness assessment
This article is for educational purposes only and does not constitute financial advice. Retirement planning involves individual circumstances that no article or calculator can fully address. Consult a qualified financial professional before making retirement decisions. All statistics are sourced and current as of February 2026; sources are linked throughout. Truthifi is a financial monitoring platform — it does not provide investment advice, manage money, or sell financial products.
Which calculator should you trust? Honest tool reviews
Every major free retirement calculator has a business model — and understanding that model actually helps you get more value from these tools, whether you choose advisory services or not.
Here's the important context: financial advice can be genuinely worth the cost. Vanguard's research estimates that comprehensive financial advice adds approximately 3% in net value annually — meaning a $500,000 portfolio could gain roughly $15,000 per year in advisory value. So when a calculator connects to advisory services charging $2,500 to $4,450 per year, the math can work in your favor. Over 20 years, a user with a $500,000 portfolio would pay an estimated $50,000 at Fidelity (0.50% AUM) or $89,000 at Empower (0.89% AUM) — but if the advice delivers even half of Vanguard's estimated value, the net benefit is substantial. The question is whether you're making that choice with full visibility into both sides of the equation.
Here's what the business model looks like behind each platform.
Fidelity offers a well-built calculator with its 10x-income benchmark. The calculator connects to Fidelity Wealth Services, which charges 0.50% to 1.50% AUM with a $500,000 minimum. On a $500,000 portfolio, that's $2,500 to $7,500 per year — $50,000 to $150,000 over 20 years. Fidelity's advisory services bundle portfolio management, tax-smart strategies, and dedicated planning support — and for investors with complex financial lives, that bundled relationship can deliver value that significantly exceeds the fee.
Empower provides a comprehensive free dashboard that evolved from the Personal Capital acquisition. Empower Personal Wealth surpassed $100 billion in assets under advisement by August 2025, with 1,500+ financial advisors. Their Personal Strategy advisory fee starts at 0.89% AUM with a $100,000 minimum. The free tools are paired with optional access to guidance and advice from experienced financial advisors — a model that works well for investors who want both self-service tools and professional support.
NerdWallet earned $183.8 million in total revenue in 2024, up 37% year-over-year, primarily from referral partnerships with financial product providers. NerdWallet discloses this clearly on its site. Their content is editorially independent, but understanding the referral model helps you evaluate recommendations in context.
SmartAsset operates an Advisor Marketing Platform (AMP) that delivers 120 to 540 referrals per year to subscribing advisors, at an estimated effective cost of approximately $200 or more per lead, according to industry analysis.
Truthifi charges a flat subscription — no AUM fees, no commissions, no referral revenue. Total cost over 20 years: approximately $2,400 to $4,800. Truthifi can't manage your money — but it can show you what the numbers mean. That's the core difference in the model: Truthifi earns the same amount whether you invest $50,000 or $5 million, which means its analysis isn't influenced by your portfolio size.
Good advisors welcome transparency — and many actively encourage their clients to understand fee structures and use independent tools. Whether you work with an advisor or plan independently, understanding how each platform's model works helps you make better decisions. If you want an independent starting point, try a retirement readiness assessment that shows your numbers without a sales conversation. Or see exactly what you're paying in fee with Truthifi's Fee X-Ray — a tool many advisors recommend to their own clients.
What you actually need to know (and can ignore)
Here's what matters more than a single scary number.
Your actual spending is the foundation. Not your income. Not a rule of thumb. Your real annual expenses, minus what disappears in retirement (commuting, work clothes, payroll taxes, retirement contributions). For most people, this produces a number meaningfully lower than the 80% to 100% replacement ratio calculators assume.
Median retirement savings are more relevant than averages. The Federal Reserve's 2022 Survey of Consumer Finances shows the median (typical) retirement savings for ages 65 to 74 is $200,000 — while the average is $609,230. The average is inflated by a small number of very wealthy households. Which number feels closer to your reality?
Age group | Median retirement savings |
|---|---|
Under 35 | ~$18,880 |
35–44 | ~$45,000 |
45–54 | ~$115,000 |
55–64 | ~$185,000 |
65–74 | ~$200,000 |
Let's put that gap in daily terms.
The gap is smaller than you think — and manageable per day. For a 40-year-old with median savings of $115,000, closing the gap to a reasonable $500,000 target requires roughly $370 to $650 more per month than they're currently saving — or about $12 to $22 per day. That's a latte and a lunch, not a lifestyle overhaul. Starting earlier makes it cheaper: a 30-year-old needs about $420 more per month for the same target.
What you can safely spend less energy on: the exact inflation rate 30 years from now, precise market return projections, and whether you need exactly $1,247,000 or $1,253,000. Those numbers create false precision. Focus on the inputs you can control — your savings rate, your spending, and whether you're capturing your employer match (if you have one).
For a deeper look at whether your savings will carry you through retirement, find out how long your savings will actually last. And when you're ready for professional guidance, a one-time fee-only consultation ($200–$500) can provide a professional plan without ongoing fees. Get your free financial health score to see where you stand today.
Get your free Truthifi Score — it takes 2 minutes and nobody will call you afterward. See where you stand.
FAQ: Retirement calculators
Why do retirement calculators give different answers?
Different calculators use different assumptions about inflation, investment returns, Social Security, and how long you'll live. Change any one of those inputs and the output changes dramatically. The three biggest variables are whether the calculator includes Social Security, what income replacement percentage it assumes (45% vs. 80% vs. 100%), and what inflation rate it uses (2.5% vs. 4%).
Why does my retirement calculator say I need $2 million?
It's likely using the 10x-income rule, ignoring Social Security, and assuming you'll spend 80% to 100% of your current income in retirement. But Bureau of Labor Statistics data shows most retirees spend about 78% of pre-retirement levels, 94% receive Social Security averaging $2,071 per month, and Fidelity's own methodology targets only 45% replacement from savings. The realistic number is often 40% to 55% lower.
Are retirement calculators accurate?
They're as accurate as their assumptions — and most use conservative assumptions that produce a larger number than you may actually need. A calculator that ignores Social Security, assumes 4% inflation, and targets 100% income replacement will always produce a scary result. That's not a flaw — it's a conservative methodology. Look for calculators that show you a range and explain every assumption.
What is the simplest retirement calculator?
The best simple calculators need just 3 to 5 inputs (age, savings, monthly contribution), show a range of outcomes rather than one number, and explain every assumption in plain English. Calculators that require 15 or more inputs may be gathering data for more than just your retirement projection — worth knowing, even if the advisory services they connect to are genuinely valuable.
Do I need a financial advisor or just a retirement calculator?
Many investors with portfolios under $500,000 find that a good calculator and basic financial literacy meet their planning needs. But for many others, working with an advisor is one of the best financial decisions they'll make. Advisors add clear value for complex situations — multiple income sources, business ownership, estate planning, or tax optimization — and the behavioral coaching component alone keeps investors from making costly emotional decisions during market downturns. Research from Vanguard suggests good financial advice can add approximately 3% in net returns through behavioral coaching, tax management, and rebalancing — which can more than offset the advisory fee for many households. A one-time fee-only consultation ($200 to $500) provides a professional plan without locking into ongoing AUM fees of 0.50% to 1.50%.
What is a Monte Carlo simulation in retirement planning?
A Monte Carlo simulation runs your retirement plan through thousands of random market scenarios — some with crashes, some with booms, most somewhere in between — to calculate the probability your money lasts. A "90% success rate" means 9 out of 10 simulated futures didn't run out of money. It's more realistic than a single fixed projection.
Is the 4% rule still valid?
Broadly yes, with adjustments. William Bengen's 1994 research established the 4% rule as a conservative floor for 30-year retirements. Morningstar's 2025 analysis suggests 3.9% as a safe starting rate for 2026, with flexible strategies pushing it to nearly 6%. Most retirees can safely spend more if they're willing to adjust in down markets.
What assumptions do retirement calculators use?
Most calculators use five core assumptions: inflation rate (typically 2.5% to 4%), investment return (5% to 8% nominal), life expectancy (85 to 95), income replacement ratio (45% to 100% of pre-retirement income), and whether Social Security is included. Changing any single assumption can shift the output by hundreds of thousands of dollars.
What does "retirement calculator says I can never retire" actually mean?
It means the calculator's assumptions are too aggressive for your situation — not that you're doomed. If it assumed 100% income replacement, 4% inflation, no Social Security, and retirement at 62, any middle-income earner would "fail." Try adjusting to actual spending levels, including Social Security, and using a more realistic inflation rate. The answer usually changes dramatically.
How do I start retirement planning if I feel overwhelmed?
Many financial educators suggest starting with one number: your current savings. Then one question: how much are you saving monthly? Everything else can wait. From there, the most important next step is understanding whether your employer offers a match (free money) and whether you're contributing enough to get it. A 3-input calculator can show you a realistic range in under two minutes.
Is Fidelity's retirement calculator reliable?
Fidelity's calculator is well-built and uses its 10x-income benchmark, which assumes 45% income replacement from savings. The headline number can feel alarming without that context. The calculator also connects users to Fidelity Wealth Services advisory (0.50% to 1.50% AUM, $500,000 minimum) — which, for investors with complex needs, can be a strong option. Fidelity's advisory services have earned strong client satisfaction ratings and deliver comprehensive planning. The main thing to know is that the calculator's conservative assumptions don't mean you're in trouble — they mean you should look at the assumptions before drawing conclusions.
What is a realistic retirement number?
It depends on your spending, not your income. The most reliable method: multiply your expected annual retirement spending by 25 (based on the 4% rule). If you expect to spend $50,000 per year and Social Security covers $25,000, you need $625,000 in savings ($25,000 gap × 25). That's often far less than the "10x income" headlines suggest.
Read next from the Truthifi blog
Will my retirement savings last? — Find out how long your savings will actually last
Am I behind on retirement savings? — Why those "scary" benchmarks might not apply to you
Retirement Readiness Score — An independent retirement readiness assessment
This article is for educational purposes only and does not constitute financial advice. Retirement planning involves individual circumstances that no article or calculator can fully address. Consult a qualified financial professional before making retirement decisions. All statistics are sourced and current as of February 2026; sources are linked throughout. Truthifi is a financial monitoring platform — it does not provide investment advice, manage money, or sell financial products.
Disclaimer: This article is for informational purposes only and does not constitute financial advice. Always consult with a qualified financial advisor before making investment decisions.
Disclaimer: This article is for informational purposes only and does not constitute financial advice. Always consult with a qualified financial advisor before making investment decisions.
Disclaimer: This article is for informational purposes only and does not constitute financial advice. Always consult with a qualified financial advisor before making investment decisions.
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