Retirement Planning Basics
Core concepts for retirement savings — compound growth, contribution strategies, and how to project your nest egg.
7 min read · Last updated: July 13, 2026
Start as early as possible
Compound interest rewards time. Even small contributions in your 20s can outgrow larger contributions started in your 40s. Employer 401(k) matches are immediate 50–100% returns — always contribute enough to capture the full match.
How much should you save?
Common rules: save 15% of gross income for retirement, or aim for 25× your annual expenses by retirement age. These are starting points — your needs depend on lifestyle, Social Security, pensions, and health costs.
Account types
401(k) and 403(b) offer tax-deferred growth with employer matching. Traditional IRA deductions may reduce taxable income. Roth IRA grows tax-free. Each has contribution limits and withdrawal rules — consult a financial advisor for your situation.
Project your growth
Use the CalcVo Compound Interest Calculator with your current balance, monthly contributions, expected return (6–7% for diversified portfolios), and years to retirement. Adjust assumptions conservatively and revisit annually.
Important note
This guide is educational, not financial advice. Past returns don't guarantee future performance. Consult a certified financial planner for personalized retirement planning.