Retirement Plan 2 - if the user follows this plan, the retirement funds immediately start to deplete, but they will not run out. Notice at retirement the invested funds immediately start to deplete as indicated by the red bars. At retirement (age 65), start withdrawing $25,000 annually with a 2.5% inflation adjustment, you'll not have a comfortable retirement for your entire life expectancy. Start at age 35 and save 5% of a $50,000 annual income with a 3% income increase every year. Retirement Plan 1 - not a comfortable retirement illustration. The point is to show three slightly different sets of inputs and how generally small changes can have a significant impact on the results. If you want to reach a particular income aside from what may come from other sources, leave other sources set to zero.Ĭlick on the below plans, and the calculator's data will change, and the chart will be updated. Or stated another way, both the chart and the retirement schedule consider only your investment plan and income before Social Security and pensions. If you enter income from other sources such as Social Security or pensions, that income will be deducted from the desired income when making the investment calculations. Therefore, desired income is the total annual income you want when you retire. Desired retirement incomeĪ note about "Desired retirement income": When users are thinking about retirement and the income they want, they usually think about their total income, and not the individual components of the income. Additionally, your life expectancy will be updated so that the difference between the two will equal the number of years you want the funds to last. Notice after the calculation, your retirement age will be known. If you want your retirement income from investments to last 20 years (21 withdrawals), you, therefore, enter 86 for "your life expectancy." Or if you want it to last 25 years, you enter 91 and 0 (zero) for "Your age at retirement." When you enter your life expectancy, the calculator calculates the number of years you want your savings to last from the default date. So how do we know this?īehind the scenes, the calculator has a default retirement age. But this calculator does not ask you that question. To make this calculation, we have to know how long you want your retirement income to last. If you want to know at what age you can retire given your expected savings plan and income desired, this calculator will tell you as noted above. The result is the age at which the depletion of your retirement savings occurs.Ĭlick on the calculator's "Help" button for more details about each input.Set "Desired retirement income" to the total income you want including other income.After calculating, see "Savings at retirement" in the chart.If calculated age equals your current age, then you have enough to retire now.Hover mouse over gold contribution line in the chart to see annual retirement contribution.Set "Percent of income invested" to "0.0%".Below are questions that can be answered based on your assumptions using the values you provide. As with other financial calculators on this site, this retirement planning calculator can solve for multiple unknowns. Retirement planning involves many variables. You may leave any or all of them set to "0":Įxamples Creating Your Retirement Schedule & Chart Enter "0" (zero) for one of the four and a value for each of the other three: The calculator will calculate any one of four unknowns. ROI for retirement savings - return-on-investment.The calculator has 13 inputs, 4 of them are required: It considers historical and future inflation. Related: Use this Inflation Calculator to help you determine an appropriate "Annual Inflation Rate" for you.
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