"How much do I need to save to retire comfortably?" — everyone asks this question. The answer depends on three core variables. Let's break them down one by one.
The Three Core Variables of Retirement Planning
- Monthly retirement spending: estimate your average monthly cost of living after retirement
- Years in retirement: life expectancy minus retirement age
- Investment return: the annualized return your money earns before and during retirement
The 4% Rule
The internationally recognized "4% rule": withdraw 4% of your total assets in the first retirement year, then adjust annually for inflation. This implies:
Retirement nest egg = annual spending × 25
Example: if you plan to spend ¥8,000/month → ¥96,000/year → you need about ¥2.4 million saved.
Plan with a Calculator
Use the retirement calculator with your real data:
- Current age and target retirement age
- Current savings and monthly contribution
- Expected annualized return
The calculator automatically works out: total assets at retirement, monthly withdrawal available, and whether a gap exists.
What If There's a Gap?
- Use the compound interest calculator to simulate a higher monthly contribution
- Use the salary calculator to optimize your take-home income
- Consider delaying retirement 2–3 years, which dramatically increases your retirement fund
The earlier you start retirement planning, the easier it gets. Try the retirement calculator now and give yourself a clear picture of the future.