Your current plan is not on track to meet your retirement income goal. The core reason: accumulation is far behind what's needed. With 12 years until retirement, you are projected to accumulate $182,839.89 from a starting nest egg of $50,000, $36,000 in total contributions ($250 x 144 months), and growth from an 8% average annual return. However, even this growth cannot bridge the gap to your $100,000 target.

Using the 4% safe withdrawal rule, that $182,839.89 generates only $7,313.60 per year — about 7.3% of what you need. To sustain $100,000 annually, you would need a portfolio of roughly $2.5 million ($100,000 ÷ 0.04). Your projected savings are less than 8% of that target. The shortfall is severe, but not hopeless. By increasing your contributions, delaying retirement, or adjusting your income expectations, you can significantly improve your chances.

Compare your current plan to a more aggressive scenario: if you were to increase your monthly contribution to $1,500 (still less than $20,000 per year), your retirement savings at age 62 would grow to approximately $388,000 (assuming the same 8% return). That would provide a sustainable income of about $15,520 per year — still far from $100,000, but more than double your current $7,314. To reach the $2.5 million target, you would need to save roughly $10,000 per month over 12 years, which is unrealistic for most. Alternatively, delaying retirement to age 70 (18 more years) with the same $250/month would grow your savings to about $314,000 — a sustainable income of $12,560. Still a major shortfall, but buying more time helps.

Another alternative: reduce your desired income to a more achievable figure. Suppose you aim for $40,000 per year (a lean retirement). With the same $182,839 portfolio, the 4% withdrawal provides $7,314 — only 18% of that goal. You would still need to increase savings. The comparison underscores the need for drastic action, whether through higher savings, later retirement, or downsizing expectations. No single change will close the gap; a combination is essential.

1. Increase monthly savings dramatically. Aim to save at least 20–30% of your income. For example, if you can contribute $1,500/month instead of $250, you could accumulate roughly $388,000 (with 8% return) – still not enough, but a major improvement.
2. Consider delaying retirement. Working just 3 more years (to age 65) would give you 15 years of growth. With $250/month, you’d have about $221,000 – sustainable income of $8,840. Still far off, but buying time helps your savings grow more.
3. Reduce your desired income. Realistically assess what you need. Cutting your target to $50,000/year would require a portfolio of $1.25 million. That is still a big goal, but more attainable with higher savings and later retirement.
4. Boost your investment returns carefully. While you assume 8%, consider a more aggressive allocation (e.g., 90% equities) for the growth phase, but remember higher risk. Alternatively, use tax-advantaged accounts like a 401(k) or IRA to maximize growth.
5. Create a side income stream in retirement. Plan to work part-time or generate passive income. Even earning $20,000/year in retirement significantly reduces the burden on your savings.