Retirement Investment Calculator
This retirement calculator figures how much investment is required each month to reach your savings goal by a given date. It solves for monthly investment required and leaves time fixed.
If you would prefer to solve for time try the Retirement Savings Calculator (also available on this website). Each calculator shows you a different way to reach your goal - by increasing time or by increasing savings.
And if this free calculator helped you then please give a like, tweet, or +1 to support our educational efforts. Thanks for helping out.
Retirement Investment Calculator Tips
When should you start investing for retirement?
There is actually no best or worst time to begin retirement savings – the earlier the better.
It is like the ancient saying, “When is the best time to plant a tree?” 20 years ago is best, but if you didn’t do it back then, starting now is second best. The problem is life conspires to keep you from building your retirement fund:
The reality is retirement is something you should continually be saving for – the earlier the better. And this retirement investment calculator will help you see how much you need to save each month to reach your planned investment goal regardless of when you start.
How Much Do I Need To Invest For Retirement?
How much you need to invest for retirement depends on when you start saving and how big your retirement budget will be.
If you make some rough assumptions including that your retirement budget will be 80 percent of your pre-retirement, pre-tax income, that you’ll live roughly 30 years in retirement, start with zero savings, and get average historical investment returns, then below are some rough guidelines to match those rough assumptions.
Please recognize, however, that these guidelines are REALLY rough:
Two conclusions are obvious – the earlier you start saving the easier the goal is to attain, and the earlier you retire the harder the goal is to attain. Using this retirement investment calculator allows you to fix your time period and easily calculate how much you need to save. It makes the math easy for you.
Why Do I Need A Retirement Fund?
Unless you plan on being indigent or dependent on charity, there really is no choice.
You must build your retirement savings now to support your lifestyle needs when you are no longer employable (due to old age) or lack the energy to earn a living. Sad but true.
Additionally, nobody want to be a burden to their family when they get old. It represents a loss of dignity and shows everyone that you were not responsible in planning for your financial future. Building a nest egg is the only reliable solution.
The alternative of relying on a government pension system (like Social Security) is no plan at all. The income from these pension funds is designed for subsistence only and does not allow for comforts, travels, or medical emergencies.
The reality is you either plan for your retirement by saving now, or you are planning (by default) to lose your freedom and independence when you become elderly.
The choices are straightforward. Would you rather have a hefty tax deduction today by funding your retirement accounts and building your financial security for tomorrow, or would you prefer to spend a little more today and risk losing your dignity and freedom tomorrow?
Start investing for your retirement as early as possible. Follow the formula and adjust your living expenses around it. Saving for your retirement is an important step that you should take to secure your lifestyle when your active income ceases.
Like death and taxes, retirement will happen with certainty. You must prepare for it.
Retirement Fund Calculator Terms And Definitions:
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