This simple retirement calculator will help you see if you are on track to have enough money when you reach your desired retirement age, or if you need to save a bit more each month.
Your financial plan should focus on eliminating your debt and fully funding your nest egg. Financial security is worth its weight in gold, and your retirement plan should take into consideration your current age as well as the age you want to retire.
Time is not always on our side if we have allowed our retirement savings to take a back seat for an extended period. Also, who knows if social security will still be around when we get older.
Retirement Calculator Savings Plan
My calculator gives you a simple look at how much you may need to save to meet your retirement goal. The calculator factors in the following information:
- Your Current Age
- Your Desired Retirement Age
- Current Retirement Savings Balance
- Expected Investment Return
- Financial Needs In Retirement (Total Monthly Amount)
- Include Social Security Benefits
- Any Guaranteed Pension Benefits
With this information, the calculator factors in the monthly amount you need to contribute to your retirement savings each month to reach your retirement goal based on age and desired monthly income.
How Much Should I Save For Retirement?
The amount someone should save for retirement is different for every individual. The first area you should focus on is determining how much money you want to live off of each month. What monthly income do you want to have available to you?
Keep in mind, your current annual income is probably paying for more things than it would in retirement. For instance, by retirement age, you may no longer have a mortgage, kids to put through college or other outstanding debts. Retired individuals often need less money to live off of than younger working people.
With this number in mind, you can better prepare to meet this goal by figuring out how many working years you have left and how much you should invest each month. Keep in mind, today’s dollars will be worth less in the future due to the inflation rate. To ensure your money does not lose value, it needs to be making at least 2% – 3% per year to keep up with inflation.
This tool is the best retirement calculator I have found that keeps it simple enough to understand. To double-check the calculations, you can use my simple compound interest calculator to see the lump sum you will have when you retire.
Wrapping It Up
While this free tool will give you insight on how your individual retirement account may be doing based on your savings, pension, and social security income, you should always consult with a financial advisor before making any significant changes.
Retirement income needs to last your entire life so meet with a financial advisor that specializes in retirement planning to create a plan based on your individual needs.