401(k) / Workplace Savings Calculator
Your Retirement Savings Outlook
Balance at Retirement
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Sustainable Annual Income
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Income Shortfall / Surplus
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The Most Important Rule of Investing: The "Free Money" of Employer Matching
Financial experts argue endlessly about the best investment strategies, but there is one thing they all agree on: if your employer offers a retirement contribution match, you should *always* contribute enough to get the full amount. Not doing so is like turning down a 100% guaranteed return on your money—an opportunity you will never find anywhere else.
Imagine your employer offers to match 50% of your contributions up to 6% of your salary. This means if you contribute 6% of your salary, your employer adds another 3% for free. It's an instant 50% return on your investment before it has even had a chance to grow. Over a 30-year career, this "free money" can account for hundreds of thousands, or even crores, of your final retirement balance due to the power of compounding.
Many young professionals make the mistake of not contributing, thinking they'll start later. But they miss out on the most powerful growth years. The surprising lesson is that your employer's matching contribution is often more valuable than any "perfect" stock pick you could ever make. This calculator helps you visualize just how significant that matching amount can be over your career.
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Frequently Asked Questions (FAQ)
What is a 401(k)? How does it relate to EPF or NPS in India?
A 401(k) is a popular employer-sponsored retirement savings plan in the United States. This calculator uses principles that are directly applicable to similar plans in India, like the Employee Provident Fund (EPF) and the National Pension System (NPS), where both the employee and employer contribute to a retirement fund that grows over time.
What is "Employer Match" and why is it important?
Employer match is a program where your employer contributes a certain amount to your retirement account based on your own contributions. For example, they might match 50% of what you contribute, up to 6% of your salary. It's essentially free money and a powerful way to accelerate your savings. You should always contribute at least enough to get the full employer match.
What is a realistic rate of return to assume?
For long-term pre-retirement planning (10+ years), a rate of 10-12% is a common assumption for an equity-heavy portfolio. For post-retirement, when capital preservation is more important, a more conservative rate of 6-8% from a balanced portfolio of debt and equity is often used.