Retirement Nestegg Calculator
Secure retirement is a concern for us all. Plan ahead by using this calculator to determine how much you need to be saving for your retirement.
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Definitions
- Current age
- Your current age.
- Age of retirement
- Enter the age you wish to retire. Calculation will be based on the assumption that your last contribution was made the year before you retired and all contributions are made at the end of the calendar year.
- Household income
- Enter the total household income including your spouse if applicable.
- Current retirement savings
- Enter the dollar amount you currently have saved, including all sources of savings such as IRAs, Annuities, and/or 401(k)s.
- Rate of return before retirement
- This is the annual rate of return you expect from your investments after taxes. The actual rate of return is largely dependant on the type of investments you select. From January 1970 to December 2006, the average compounded rate of return for the S&P 500, including reinvestment of dividends, was approximately 11.5% per year (source: www.standardandpoors.com). During this period, the highest 12-month return was 61%, and the lowest was -39%. Savings accounts at a bank pay as little as 1% or less.
It is important to remember that future rates of return can't be predicted with certainty and that investments that pay higher rates of return are subject to higher risk and volatility. The actual rate of return on investments can vary widely over time, especially for long-term investments. This includes the potential loss of principal on your investment. It is not possible to invest directly in an index and the compounded rate of return noted above does not reflect additional sales charges and fees that funds may charge.
- Rate of return during retirement
- Estimated rate of return you can expect from your savings/investment after taxes during your retirement.The actual rate of return is largely dependant on the type of investments you select.
- Years of retirement income
- Number of years your retirement income can be expected to last
- Percent of income at retirement
- Estimated percent based on your last working year's income you think you will need to have available during retirement. Percentage may range from 80% to 120%.
- Expected salary increase
- Estimated annual percent increase in your household income for the remaining years before retirement.
- Expected rate of inflation
- Estimated average long-term inflation rate which has been around 3% annually for the last eight decades.
- If you are married checkbox
- Check this box if you are married
- To include Social Security checkbox
- Check this box if you wish to include social security benefits in your retirement planning.
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