Retirement Savings Calculator
Enter the target retirement amount, years, expected annual return, and inflation to estimate the monthly saving needed and its real purchasing power today.
Input Data
Results
At a glance:The monthly saving is the contribution that grows to the nominal target; the real value discounts that target by cumulative inflation.
Formula
monthlySaving = targetAmount × r / ((1+r)^n − 1) (r = annualReturn/12, n = years×12)
realValueToday = targetAmount / (1 + inflation%)^years
How to Use
- Enter the nominal target and years to retirement.
- Enter the expected return and inflation.
- Review the monthly saving and real value today.
FAQ
How is this related to the MPF?
The MPF is Hong Kong's mandatory retirement scheme — employee and employer each contribute 5%, but the replacement rate is often insufficient to maintain pre-retirement living standards. This calculator works out the extra voluntary saving you need beyond the MPF; deduct your expected MPF accumulation from the target amount.
What annual return is reasonable?
A stock-heavy portfolio has historically returned about 6%–8% long term, a bond-heavy one about 2%–4%, and conservative time deposits less. Higher return means lower required monthly saving, but more volatility and risk. Plan with a conservative figure (e.g. 4%–5%) and leave a buffer.
Why calculate 'today's purchasing power'?
Inflation erodes money's purchasing power. HK$3 million in 30 years is worth only about HK$1.65 million today at 2% inflation. Seeing this avoids overestimating your retirement readiness; raise the nominal target if needed.
Does the annuity timing (beginning vs end of month) matter much?
Contributing at the start (rather than end) of each month earns one extra month of interest, so the required contribution is about 0.3%–0.5% lower — a small effect. This tool uses the end-of-month annuity approximation, giving a slightly conservative (safer-side) result.
Is the return guaranteed?
No. Investments carry risk and returns fluctuate, with loss years possible. The result is a hypothetical estimate, not a guarantee. As retirement nears, gradually lower the share of risky assets.
I already have savings or investments — can I deduct them?
Yes: grow your existing assets to retirement value at the same return, deduct from the target, then compute the monthly contribution. This tool models 'starting from zero each month'; if you already have a base, reduce the amount or use a more advanced planner.
Content review: Calculatorism Science Team. Results are for reference only; please refer to the relevant authorities for the official figures.