This retirement calculator can or will help you find how much you may need to save for your retirement. This post contains affiliate links/ads. See disclosure policy.
We all have our own definition of retirement. Some think of it as international travel. Some consider it as not working at all.
But do you know how much you need for retirement? Do you know when you can retire given the money you have or will have? Do you have enough saved for retirement?
These are some of the retirement question that you need to answer now so you can figure out what you need in the future. Retirement may be far but it's getting closer day after day.
Use this retirement calculator to figure out how you will need to save for retirement. This retirement calculator calculates how much you are expected to spend over the course of your retirement.
So, what does this mean? It means that when you use this retirement calculator, you will be able to estimate how much income you need in the future based on your lifestyle preference and the number of your retirement you will be on retirement.
Once the retirement calculator has figured out your total need, it analyzes existing resources to help you assist in achieving such need.
What does this mean again? It means that the retirement calculator will factor in your retirement income from Social Security, current savings, 401(k), pensions, and other retirement vehicles.
The retirement calculator also factors in tax impacts on these retirement accounts.
At the end, this retirement calculator will calculate the amount of money you will need at retirement, which is based on lifestyle preference, needs, and resources.
Retirement Calculator FAQs
1. How much do I need for retirement?
The answer is it DEPENDS. The retirement calculator is here to help you gauge the amount of money that you need to save for your retirement.
When you want to determine how much you need at retirement, you need to factor in your lifestyle in future as well as needs.
Some people say that it's good if you plan to replace almost 70-80% of your yearly pre-retirement income via savings and other security/retirement plans. For instance, if you are earning $70,000 per year, you will need a minimum of $58,000 per year for your retirement.
Of course, different people have different needs and requirements. To figure out how much you need, you can use our retirement calculator.
2. When is the best time to save for retirement?
NOW is the best time to save for retirement.
The earlier you start to save, the more your money gets time to grow. How's that possible? It is possible because of the compounding interest concept.
Compounding interest concept in simple terms is when your principal earns interest and both your principal and interest earn interest on top of interest and so on.
Let's say you decide to save for your retirement at age 28, put $3,000 as initial investment and start putting aside around $3,000 per year in your retirement account for the next 30 years. After 30 years, your investment of $90,000 would have grown to $370,038 at 8% interest per year. At 10%, your money would have grown $545,830.
3. Where I can get information about retirement plans, savings, rates etc.?
Finding the right retirement plan can be tough but asking for detailed information from banks and other companies about how their retirement accounts work is going to be really helpful.
On the other hand, you can always go over the internet to find the best rates, best companies that meet your retirement needs, etc. This will allow you to gather data about the different plans that are available and you can decide which one is better for you.
Our suggestion is to use our retirement calculator.
You can now calculate your retirement savings (that is how much you should save for retirement according to your income and age) through our retirement calculator.