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Retirement Calculator
Please enter desired parameters into the calculator, then press "calculate".
*note: please do not enter decimal points in currency fields
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Pre-retirement saving |
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Post-retirement withdrawal |
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Retirement shortage |
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- Prior Savings- What funds will you contribute
at the inception of your retirement savings?
- Desired Income- How much would you like to
draw from this account each year when you retire?
- Retirement Age- When do you want to retire?
- % Inflation- Is a persistent increase in the
level of consumer prices or a persistent decline in the purchasing power of money.
Historically it has been 3.0%.
- % Contrib. Growth- The percentage by which
you plan to increase your annual contributions
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- Annual Contrib.- How much do you plan to contribute
to your retirement savings each year?
- Current Age- This is the age at which you will
begin this retirement plan.
- Life Expectancy- How long do you plan to live
in retirement?
- % Investment Return- What do you anticipate
your average yearly return will be?
- % Retire. Return- What do you anticipate your
average yearly return after you retire will be?
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NOTES:
- This retirement calculator uses half the investment return
rate to approximate the fact that contributions are applied throughout the year.
- Future (adjusted) values are also added to give an idea
of how the future amounts compare to today's dollars.
- When you save the money, you need to adjust that amount
for inflation in future years. (For example, if you put in $9000 this year and
anticipate inflation of 5% per year, you need to save $9,450 next year.)
- Desired retirement income is annual income, in today's
dollars, that you want to have available at retirement from your investments.
As a rule of thumb, it should be at least 75% of your current income. However,
this calculator doesn't take into account social security income (which hopefully
will still be around when you retire) or employer contributions, so if you expect
income from those sources, reduce this figure accordingly.
- Retirement age usually 65
- An estimate for the inflation rate historically about
3%
- An estimate for the investment return historically up
to 10% if you invest longterm in the stock market
- When you run this applet, the balance in your retirement
account (in current dollars) is displayed in the graph and the scrolling table.
Disclaimer:This applet is for demonstration purposes only, as many factors such
as market rates, inflation, etc. are unpredictable. Don't rely on this applet
for your retirement strategy! |
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