Retirement Calculator
Note: This calculator provides a simplified estimate and does not account for taxes, fees, or other factors. Consult a financial advisor for personalized advice.
How to Use the Retirement Calculator
This retirement calculator is designed to help you estimate your future savings and determine how much you can withdraw annually during retirement, adjusted for inflation. It’s a straightforward tool to give you a quick glimpse of your retirement readiness based on a few key details.
Step 1: Enter Your Information
Provide the following details in the calculator’s input fields:
- Current Age: Your age today (e.g., 30).
- Retirement Age: The age you plan to stop working (e.g., 65).
- Expected Years in Retirement: How long you expect to need retirement funds (e.g., 20 years).
- Current Retirement Savings: The amount you’ve already saved (e.g., $50,000).
- Monthly Contribution: How much you save each month (e.g., $500).
- Expected Annual Return Rate Before Retirement (%): Your anticipated investment return before retiring. We recommend the average Index return of 7%.
- Expected Annual Return Rate During Retirement (%): Your expected return after retiring. We recommend using a lower value to take into consideration less risk (e.g., 5%).
- Expected Annual Inflation Rate (%): The average inflation rate you expect. 2.5% is currently a good estimate if you go by federal numbers. ).
Step 2: Click “Calculate”
After entering your information, hit the “Calculate” button. The calculator will use your inputs to estimate:
- Projected Retirement Savings: The total amount you’ll have saved by the time you retire.
- Estimated Annual Withdrawal: The amount you can take out each year in retirement, adjusted for inflation.
Step 3: Review Your Results
- Projected Retirement Savings: This shows your total savings at retirement, in future dollars, based on your contributions and expected returns.
- Estimated Annual Withdrawal: This is the yearly amount you can withdraw, shown in today’s dollars, assuming it increases with inflation over time.
Important Notes
- The calculator assumes steady contributions and returns using compound interest.
- It doesn’t factor in taxes, fees, or market ups and downs, so treat the results as estimates.
- For a tailored retirement plan, consult a financial advisor.