Family Multi-Goal Savings Calculator
Most families need to fund two large goals at the same time: retirement and college. This calculator projects both simultaneously and tells you which goal is further behind — so you know where to put the next dollar.
Retirement first — always
The standard planning principle holds: retirement savings take priority over college savings. Three reasons:
- You can borrow for college; you cannot borrow for retirement. Federal student loans, PLUS loans, and private loans exist for a reason. There are no "retirement loans."
- Employer match is free money. A 50% match on 6% of salary is a guaranteed 50% return before any investment gain. No college savings vehicle competes with that.
- Tax-advantaged space is use-it-or-lose-it. You can't go back and contribute to a prior year's Roth IRA. Unused 401(k) space is gone forever. College contributions can be made at any time.
That doesn't mean college savings are unimportant — it means the priority stack matters. See our 401(k) vs. 529 prioritization calculator for the step-by-step decision framework.
Fidelity retirement benchmarks by age
Fidelity's salary-multiple targets — the most widely cited benchmark for household retirement readiness — are built on a 15% savings rate, retirement at 67, and a planning horizon through 93.1
| Age | Fidelity target | Example: $275K household income |
|---|---|---|
| 30 | 1× salary | $275,000 |
| 35 | 2× salary | $550,000 |
| 40 | 3× salary | $825,000 |
| 45 | 4× salary | $1,100,000 |
| 50 | 6× salary | $1,650,000 |
| 55 | 7× salary | $1,925,000 |
| 60 | 8× salary | $2,200,000 |
| 67 | 10× salary | $2,750,000 |
Values are for combined household income, not per-earner. The benchmark is more demanding for early retirees — plan for 12× if retiring at 60.
College costs: today vs. projected
College Board 2025-26 average all-in annual costs (tuition, fees, room and board):2
| School type | Today/year | In 8 years (4% inflation) | In 14 years |
|---|---|---|---|
| In-state public | $30,990 | ~$42,400 | ~$53,700 |
| Out-of-state public | $50,920 | ~$69,700 | ~$88,200 |
| Private nonprofit | $65,470 | ~$89,600 | ~$113,400 |
4% annual tuition inflation on College Board 2025-26 base costs. A child starting in 8 years faces the "In 8 years" column in Year 1, with each subsequent year 4% higher still.
How to allocate in practice
Once you know the gap in each goal, the allocation decision follows a priority stack:
- Capture the full 401(k) employer match — this is mandatory before anything else.
- Max your HSA ($8,750 family limit for 2026) — triple tax advantage, can invest for retirement.
- Max Roth IRAs for both spouses ($7,500/person in 2026 if under 50) — tax-free retirement growth.
- Max 401(k)s to the IRS limit ($24,500 in 2026, $32,500 if 50+) — for both earners if possible.
- Fund 529s to close the college gap — after step 4, direct remaining savings here.
- Extra retirement savings in taxable — only after steps 1–5 are complete.
Many families in the $150K–$400K income range can complete steps 1–3 and partially complete step 4. Steps 5 and 6 use what remains. A fee-only advisor models this against your specific income, tax bracket, mortgage, and timeline — see our Roth vs. Traditional 401(k) guide for the bracket math or the emergency fund calculator to make sure you have the right cash buffer before maxing accounts.
The 4% rule and college overlap years
The calculator uses the 4% rule (Bengen 1994) to translate a lump-sum retirement balance into annual income: a portfolio theoretically sustains 30+ years of 4% annual withdrawals with high historical probability.3 It's a planning benchmark, not a guarantee. For families with significant Social Security income, the required portfolio may be lower. For early retirees, a 3.5% rate is more conservative.
The "college overlap years" — when tuition payments and retirement contributions collide in your mid-50s — are the most cash-intensive period in a family's financial life. Starting 529 contributions early, even at modest amounts, dramatically reduces the monthly burden during those years. Our college savings benchmarks by age show the monthly savings targets by your child's current age for all three school types.
Related tools and guides
- 401(k) vs. 529 Prioritization Calculator — step-by-step decision framework
- College Cost & 529 Savings Calculator — per-child monthly target
- 529 College Savings Benchmarks by Age — on-track balances for ages 0–16
- Roth vs. Traditional 401(k) Calculator — two-income household comparison
- FAFSA Financial Aid Estimator — see how your assets affect aid eligibility
- Family Financial Planning Guide — complete household framework
- 529 Funding Strategy — state plan selection, superfunding, and benchmarks
- Match with a fee-only family financial advisor
Frequently asked questions
Retirement comes first — always. Capture your full employer 401(k) match, then max your HSA, then fund Roth IRAs, before adding to 529 plans. You can borrow for college; you cannot borrow for retirement. Once tax-advantaged retirement accounts are maxed, then increase 529 contributions aggressively.
A common starting point once retirement accounts are on track is 80% retirement / 20% college from discretionary savings. The right ratio depends on your ages, how much is already saved, how many kids you have, and your target school type. This calculator identifies the gap in each goal so you can decide where additional dollars do the most good.
Fidelity recommends saving 1× your salary by age 30, 3× by 40, 6× by 50, 8× by 60, and 10× by 67. These benchmarks assume a 15% savings rate, a 67 retirement age, and a planning horizon through age 93. For dual-income households, apply the multiple to combined household income.
According to College Board 2025–26 Trends in College Pricing, average all-in annual costs (tuition, fees, room, board) are approximately $30,990 for in-state public, $50,920 for out-of-state public, and $65,470 for private nonprofit. With 4% annual tuition inflation, a child starting college in 10 years faces first-year costs roughly 48% higher than today.
You can withdraw Roth IRA contributions (not earnings) at any time tax- and penalty-free. Qualified education expenses are one of the exceptions that allow penalty-free (but not tax-free) withdrawal of earnings. However, using your Roth IRA for college depletes tax-free retirement savings that cannot be replaced for prior years. Most planners recommend exhausting 529s and other savings first before tapping the Roth. See our 529 vs. Roth IRA for college savings guide for the full comparison.
Unused 529 funds have several tax-efficient options. Under SECURE 2.0, you can roll up to $35,000 (lifetime) into a Roth IRA for the beneficiary, provided the account is at least 15 years old and annual rollovers don't exceed the IRA contribution limit ($7,500 in 2026). You can also change the beneficiary to a sibling, cousin, or yourself. Or withdraw for non-qualified expenses — you'll owe income tax plus a 10% penalty only on the earnings portion, not on principal. See our 529 withdrawal strategy guide for details.
Get both goals modeled by an advisor
A fee-only family advisor builds the integrated household model: retirement gap, college funding shortfall, insurance coverage, estate documents, and tax optimization — all in one plan. No AUM minimums for many. No commission on products.
Sources
- Fidelity — Retirement Savings Guidelines. Salary-multiple benchmarks: 1× at 30, 3× at 40, 6× at 50, 8× at 60, 10× at 67. Based on 15% savings rate, retirement at 67, planning horizon through 93.
- College Board — Trends in College Pricing 2025 Highlights. Annual all-in costs (tuition, fees, room, board) for 2025-26: in-state public $30,990; out-of-state $50,920; private nonprofit $65,470. Used as base costs in the calculator with 4% inflation projection.
- Kitces — The 4% Safe Withdrawal Rate in Retirement. Bengen (1994) Trinity Study basis for the 4% planning benchmark. Note: early retirees should consider a 3.5% rate for longer horizons.
- IRS — 401(k) Contribution Limits 2026. Employee deferral limit $24,500; catch-up at 50+ adds $8,000 (total $32,500); super catch-up at 60-63 adds $11,250 (total $35,750 per IRS Notice 2025-67).
College cost data from College Board 2025-26. Retirement benchmarks from Fidelity research. Calculator uses simplified annual compounding — no state taxes, no financial aid adjustment, no intra-college drawdown modeling. All results are planning estimates only, not financial advice.