Our online tool helps you figure out how much money you really need to retire.
Our exclusive Retirement Savings Calculator will help you estimate the future value of your retirement savings and determine how much more you need to save each month to reach your retirement goal. Actual results will depend on how much you contribute to your retirement accounts, the rate-of-return on your investments, and how long you live. (The calculator does not take taxes on your retirement income into account so your actual spendable income will be less.)
Source: Henry "Bud" Hebeler of AnalyzeNow.com
1. How Much Income Will You Need In Retirement?
(Spouse) Current gross income:
$ $ Years until you begin retirement:
Assumes both spouses retire at the same time 15 5 10 15 20 25 30 Percentage of current income you want to replace:
80% is a good ballpark estimate—more if you expect to pay for your own health insurance in retirement 80% 50% 55% 60% 65% 70% 75% 80% 85% 90% 95% 100% 105% 110%
2. How Much Retirement Income Will You Receive from Social Security and Pensions?
(Spouse) Monthly Social Security income:
Consult the annual statement available from the Social Security Administration or calculate your benefit at www.ssa.gov in today’s dollars. $ $ (Spouse) Monthly retirement pension income:
Ask your benefits department for an estimate in today’s dollars. $ $ (Spouse) Will your pension include annual cost of living adjustments (COLA)?
Most government pensions do; most private pensions do not.) Yes No Yes No
3. How Much Retirement Savings Have You Already Accumulated?
(Spouse) Current value of 401(k)s, IRAs and other retirement accounts: $ $ Estimated average return on investments between now and retirement: 6% 8% 10%
(6% = Conservative; 10% = Aggressive)
4. How Much Will You Draw From Home Equity?
If you plan to sell your home in retirement and move elsewhere, answer the following questions. If not, skip to Step 5.
Current market value of your home: $ Remaining mortgage at retirement: $ Cash you expect to use from home sale to buy a new house: $
5. How Big of a Nest Egg Do You Need?
Years you expect to live in retirement:
Assume you will live until at least 90. 20 20 25 30 35 How much of your portfolio will be invested in stocks during your retirement? 35% 50% 65%
(35% = Conservative; 65% = Aggressive) Any additional assets expected at retirement:
Include any other significant assets you expect to have at retirement such as an inheritance or the sale of a business. $