This simple retirement calculator figures out how long until you reach your...show more instructions
Retirement Savings Calculator Tips
Nobody wants to “retire”.
Instead, you want the freedom to do whatever you want, whenever you want, and with whomever you want… without the need to work for money.
That's why the best time to start thinking about retirement is long before your planned retirement date. Early preparation gives you more time to plan options that will make your retirement years more comfortable.
Related: 5 Financial Planning Mistakes That Cost You Big-Time (and what to do instead!) Explained in 5 Free Video Lessons
Use this retirement savings calculator to determine how much you need to save each month to be able to retire by a specified date so that you can live with the freedom you desire.
The Best Time To Retire
If you're not sure when is the right time to retire, you're not alone.
For some people, the progression toward retirement is natural. Your retirement date is predetermined and there is no question when you will stop working.
For others, thinking about retirement gives you an edgy feeling and the decision is fraught with emotional difficulty. The decision can be made more difficult because there so many personal and financial factors involved. The following symptoms provide simple signposts letting you know when your retirement date is near:
- You've reached retirement eligibility age: Simply retiring just because you reach age 60 can be a costly mistake if you haven’t prepared for it. You must consider pension eligibility requirements, medical insurance terms, and more. Make sure you've mapped out the dates for these essential financial issues by age 50 so that you have plenty of time to prepare your savings for the date.
- Watch your need for part-time income. If your pension and retirement savings are insufficient, it might be wise to hang on to your existing job a little longer to increase those savings before retiring. If you are healthy, try to keep your job until you reach 70 (as long as your company allows you). That will also help maximize your monthly Social Security payments further reducing income concerns.
- Family agreement: Retirement affects the whole family. A strategic time to consider the transition is in your 50s and 60s when your salary is at its peak, your children have finished college, your mortgage is paid off, and you’re still healthy enough to travel or do other work that you love to do. Each of these financial events are symptoms that it may be time to retire.
If you're not clear on your vision for retirement, gain clarity on it with our step-by-step course which teaches you how to engineer an actionable wealth plan specific to your financial needs and goals.
Preparing For Retirement
Will your retirement transition be exciting or painful?
The answer to that question depends on your preparation. Sure, you know about saving for retirement and other financial issues, but have you considered the life planning questions?
- What will you do to enjoy your golden years?
- What passions have remained dormant because you never had the time?
- What hobbies would you like to begin?
- How will you meet your social and community needs now that work-related interaction has ended?
- What will make your remaining time fulfilling and meaningful?
Retirement can be a wonderful stage in your life if you prepare for it emotionally and financially. To fully enjoy your retirement years, start thinking about when and how you want to retire.
Calculate how much savings you need, find additional ways to save for your future, and start investing. This simple retirement saving calculator will teach you the easiest way to find out how much you need to save each month to reach your retirement goal.
Maximizing retirement income requires navigating complex decisions about Social Security, 401(k), and IRA withdrawals. Plus, your investment strategy will likely need to change as you approach and enter retirement.
If you have any doubt in your knowledge of financial management and investing, this is the time to consider working with a professional financial advisor.
Finding a financial advisor can be intimidating, but this tool makes it easy to get matched with highly-vetted local fiduciary advisors.
How Much Do I Need For My Retirement?
Financial security in retirement doesn’t just happen. It takes planning and commitment and, most importantly, money. Knowing how much you should save for retirement is important.
Some financial experts suggest saving at least 15% of your income, but the truth is the percentage of income required is a function of how long you will be saving and how early you started.
Start small and try to increase the amount you save each month. The sooner you start saving, the more time your money has to grow. Make it a priority to save for your retirement. Remember, it's never too early or too late to start saving.
Retirement Savings Terms and Definitions
- Retirement – cessation of work as your primary life activity so you can live according to your own priorities.
- Retirement Age – the age at which people can receive full benefits upon job retirement.
- Retirement Fund – the amount of money saved to fund lifestyle expenses during retirement.
- Current Savings – total savings including both retirement (tax deferred) and taxable.
- Savings Goal – the amount of money you want to accumulate by some future date.
- Annual Interest Rate – the rate of return on your invested capital.
Related Retirement Calculators:
- Ultimate Retirement Calculator: It's called the ultimate retirement calculator because it does everything the others do and a whole lot more.
- Retirement Withdrawal Calculator: How much can I afford to withdraw each month given the retirement savings I have accumulated – both before and after inflation?
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- Millionaire Calculator – How To Retire A Millionaire: So you wanna be a millionaire? This fun calculator will tell you when it will happen and what a million dollars will be worth by then after adjusting for inflation.
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- 401k Calculator: If I deposit a certain amount in my 401k each month what will it grow to by any future point in time?
- 401(k) Early Withdrawal Calculator: What is the financial cost of taking a distribution from my 401(k) or IRA versus rolling it over into another tax deferred account?
- Taxable vs. Tax Deferred Investment Growth Calculator: How will my future value and investment return differ between taxable and tax deferred investing?
- Interest Calculator – Simple & Compound Interest: Compares simple monthly interest income to long term compound growth for surprising results.
- Roth IRA Calculator: What is the after tax impact of switching from a traditional IRA to a Roth IRA?
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