What the AARP Retirement Calculator does

The AARP Retirement Calculator is a free online tool that estimates how much money you will need in retirement and whether your current savings and income sources will cover it. You enter your age, current savings, expected Social Security amount, pension income if you have it, and how long you expect to live. The calculator then projects your spending year by year and shows you whether you run out of money at any point.

It is not a prediction of what will happen. It is a starting point for thinking about whether your retirement plan has gaps, and if so, how large they are. The tool works best when you have already gathered rough numbers—your current balance in retirement accounts, an estimate of what Social Security will pay you, and a sense of how much you spend now.

Key Takeaways

  • The calculator shows a year-by-year projection of your money, not a may provide of what will happen.
  • You will need to know your current retirement savings balance, expected Social Security amount, and annual spending to get a useful result.
  • The tool lets you change assumptions—like retirement age or spending level—to see how each choice affects your money over time.
  • Results that show you running out of money in your 80s or 90s are a signal to talk to a financial planner, not a final answer.

What information you need before you start

Gather these numbers before you open the calculator. The more accurate they are, the more useful the result will be.

You will need your current age and the age you plan to retire. You will need the total balance in all retirement accounts—401(k)s, IRAs, Roth IRAs, and any other tax-deferred savings. If you have a pension from an employer, you will need the annual amount it will pay you and the age at which payments start. You will need an estimate of your annual Social Security benefit; you can find this on your Social Security statement at ssa.gov, or create a my Social Security account to see your personalized estimate.

You will also need a realistic picture of how much you spend per year now, or how much you expect to spend in retirement if that will be different. The calculator asks you to separate essential expenses (housing, food, utilities, insurance) from discretionary spending (travel, hobbies, dining out), because many people spend less on discretionary items as they age.

How to use the calculator step by step

Start at aarp.org and search for "retirement calculator." The tool opens in your browser—you do not need to create an account or read anything.

Enter your current age and the age you want to retire. The calculator will ask for your current retirement savings total. If you have money in multiple accounts, add them together. Next, enter your expected annual Social Security benefit and the age you plan to claim it. If you have a pension, enter the annual amount and the age payments begin.

The calculator then asks about spending. Enter your current annual spending or your expected retirement spending. You can break this into essential and discretionary categories, or enter a single total. The tool will ask how long you expect to live—this is a guess, but life expectancy tables suggest most people should plan to at least 90 or 95.

Once you submit, the calculator shows a year-by-year chart of your projected balance. If the line stays above zero through your expected lifespan, the projection suggests your money will last. If it dips below zero, it shows the year that happens.

What the results actually mean

A result showing money lasting to age 95 does not mean you are safe. It means that under the assumptions you entered—your spending stays the same, Social Security does not change, you earn a certain return on investments—your money would last that long. Real life is different. You might spend more some years, less in others. Healthcare costs might spike. The stock market might drop the year you retire.

The calculator is most useful for spotting large gaps. If the projection shows you running out of money at 82, that is a real problem worth solving. If it shows money lasting to 95 with a comfortable cushion, you have room to absorb some surprises. If it shows money lasting to 92 but you are anxious about it, that is worth discussing with a financial planner.

The tool also helps you test "what if" questions. What if you work two more years? What if you spend 20 percent less? What if you claim Social Security at 70 instead of 62? You can change one number at a time and see how it shifts your outcome.

Limitations of the calculator

The calculator assumes you will spend the same amount every year, adjusted for inflation. Most people do not. Spending often drops in the early retirement years (no commute, fewer work clothes) and rises later (healthcare, in-home care). The tool does not account for major one-time expenses like a new roof or a car, or for long-term care costs, which can be very large.

It also assumes a fixed rate of return on your investments. Markets go up and down. A bad market year early in retirement can have a larger impact on your long-term outcome than a bad year later. The calculator does not model this sequence-of-returns risk.

The tool does not include state or local taxes, which vary widely. It does not account for changes to Social Security rules or benefit amounts. It does not know about your specific situation—whether you own your home outright, whether you have debt, whether you have a disabled child who depends on you, or whether you plan to leave money to heirs.

When to use this calculator and when to talk to someone else

Use the AARP calculator as a first check. It takes 10 to 15 minutes and gives you a rough picture. If the result shows a comfortable cushion, you have a baseline to work from. If it shows a gap, that is useful information.

Talk to a financial planner if your situation is complex—if you have a pension, a business, significant real estate, or if you are married and one spouse is much younger. Talk to a planner if the calculator shows you running out of money, or if you are close to retirement and want to stress-test your plan against different market scenarios. Talk to a tax professional if you have questions about when to claim Social Security or how to structure withdrawals from different account types.

You do not need to pay for a full financial plan to get one conversation. Many planners offer a single consultation for a flat fee, which can be worth it if you have specific questions the calculator raised.

Frequently Asked Questions

What if I do not know my Social Security benefit amount yet?

Create a my Social Security account at ssa.gov to see your personalized estimate. It takes about 10 minutes and shows your projected benefit at ages 62, 67, and 70. If you do not want to create an account, you can use a rough estimate—the average Social Security benefit is around $1,800 per month, but yours will be different based on your earnings history.

Should I use the calculator if I am still working and not retiring for 10 years?

Yes, but your result will be less reliable because so much can change. Use it to get a sense of whether you are on track, then run it again every few years as you get closer to retirement. The closer you are to retiring, the more accurate your numbers become.

What if the calculator shows I will run out of money?

That is a signal to explore options, not a prediction. You might work longer, spend less, claim Social Security later, or downsize your home. A financial planner can help you model which combination makes sense for your situation. Some people find that small changes—working two more years, or reducing discretionary spending—close the gap entirely.

Can I use this calculator if I am married?

The calculator works for one person at a time. If you are married, run it for each spouse separately, using each person's own Social Security benefit and retirement savings. Then think about how your combined income and spending work together. A planner can help with questions about spousal benefits or survivor benefits, which the calculator does not address.

How often should I update my numbers?

Run the calculator once a year, or whenever something major changes—a raise, a job loss, a big withdrawal from savings, or a change in your retirement date. Annual updates help you catch drift early. If your projection shifts significantly, that is worth understanding why.