arcitools / v0.1
§ 33 · live tool

Retirement Number

The honest answer to "how much do I need to retire?" — your future expenses inflation-adjusted, minus SSS, divided by a safe withdrawal rate, with the monthly contribution you'd need to close the gap.

Your retirement number
₱36,987,545

Save ₱35,292 per month to close the gap

Future monthly expenses
Inflation-adjusted 25 years from now
₱133,292
Required nest egg at retirement
Annual gap ÷ withdrawal rate
₱36,987,545
Projected savings at retirement₱3,424,238
Shortfall to close₱33,563,307

Tool reviewed 2026-06-14

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§ 02

How it works

Inflate your expenses. Today's ₱50K/month is roughly ₱130K/month after 25 years at 4% inflation. We compound your current monthly expenses to your retirement year.

Subtract passive income. SSS pension, rental income, GSIS pension — anything coming in passively reduces the gap your nest egg has to cover.

Apply the withdrawal rate. Nest egg = annual gap ÷ withdrawal rate. At 4%, a ₱1M annual gap needs ₱25M invested. Lower withdrawal = larger nest egg = safer.

Compound your current savings. We grow what you already have at your pre-retirement return. The shortfall is what you still need to accumulate.

Solve for monthly contribution. Future-value annuity formula: how much per month, compounding monthly, to hit the shortfall by retirement age.

Pure browser-side math. Sanity check, not a financial plan. Use it to know roughly how much you need to save — then adjust your savings rate or expectations.

§ 03

Frequently asked questions

What is the 'retirement number'?

It's the lump-sum nest egg you need invested at retirement so you can withdraw a safe percentage each year (typically 4%) and have it cover your inflation-adjusted living expenses for the rest of your life — without running out of money.

Where does the 4% safe withdrawal rate come from?

It comes from the Trinity Study (1998) and subsequent research, which simulated US stock/bond portfolios over rolling 30-year retirements and found 4% as a withdrawal rate that survived nearly every scenario. For longer retirements (40+ years) or more conservative portfolios, 3.3% is safer. For shorter horizons or part-time income, 4.5–5% works.

Does PH inflation make 4% too aggressive?

The rule is real-return based (return after inflation), so high inflation isn't fatal as long as your investments outpace it. PH inflation averages 3–4%; if your portfolio earns 8–10%, your real return is 4–7%, which sustains a 4% withdrawal. Keep your portfolio equity-weighted enough to outpace inflation.

Should I include SSS pension in the calculation?

Yes — it directly reduces the gap your nest egg has to cover. Pull your projected pension from My.SSS (under Pension Inquiry) if you have an account, or estimate ₱5K–₱10K/mo for average contributors, ₱20K–₱25K/mo for high contributors. Note: PHIC and Pag-IBIG are not pensions; they're health and provident funds.

What's a realistic investment return assumption?

Long-term PSEi has returned ~7–9% nominal over rolling 20-year windows. Equity-heavy portfolios (FMETF, equity UITF): 7–10%. Balanced (60/40 stocks/bonds): 5–7%. Conservative (mostly bonds, MP2): 4–6%. Use a number that matches your actual portfolio, not what you wish.

Should I count my house as part of my retirement savings?

No — you live in it. Unless you plan to sell and downsize, your primary residence isn't liquid investment capital. Same for emergency funds, current accounts, or money earmarked for kids' tuition. Only count long-term invested money.

What if I want to retire earlier — say 50?

Set retirement age to 50, set yearsInRetirement higher (use 3.3% withdrawal rate for a 35-year retirement). The required monthly contribution will jump significantly — early retirement requires either a much higher savings rate, much higher returns, or much lower expenses. There's no free lunch.

Is this tool a financial-planning substitute?

No. It's a sanity check to know roughly how big the gap is. A real plan also accounts for taxes (PERA gets tax benefits), insurance (life + health), estate planning, and your specific situation. Use this to gut-check whether you're on the right order of magnitude.

Does this save or transmit my data?

No. Pure browser-side math. We don't store, log, or transmit any of your inputs.

§ refs

Sources & references

From official issuer, regulator, and data-provider sites. Verify any figure against the primary source before acting on it.