Have you ever wondered how much money you’ll need when you’ll retire? Perhaps retirement (I hate that word) is far off or it could be coming at you like a freight train.
How much money will you need? I’ve collected and reviewed 10 different calculators. 5 Stars is the best. I suggest that you try several as you’ll notice differences.
- You’ll need at least 70% of your current income in retirement, if you want to have fun you’ll need more.
- Determine what age you and your spouse will leave the work force.
- Estimate you Social Security benefits if you can’t find your paperwork.
- Conservative return rates are 5-8%, Agressive are 8-12%.
- Standard inflation rate is 4%
- Try multiple calculators and return every 3-5 years to see if you’re on track with your goals.
10 Retirement Calculators
AARP- Easy to use and gets the job done. Also factors in SS and estimates how much you’ll need each year. 5 Stars
Bloomberg- A bit too simple and doesn’t factor Social Security. I expected better Michael. 1 Star.
Charles Schwab- I really like this one Chuck! I especially like the interactive graph at the end. Very useful. 5 stars
CNN- Simple to use and it gives a projection if you’re on the right track. It does factor in Social Security. 4 Stars.
FINRA- Basic graphics, yet it gives you instructions and nice chart at the end. 4 Stars.
ING- Just a cute little tool to find out how much you’ll need to save. Only provides a piece of the puzzle. 2 stars.
John Hancock- Honestly this one seems a bit complex and I couldn’t get it working. I always imputed something wrong. There is no guide and I quit after 5 minutes. Next… 1 Star
Office of the Secretary of Defense (for Military Retirement)- Straight forward and much needed. 5 Stars
T. Rowe Price- Good tool and nice slide show at the end. 4 Stars.
Vanguard- One of the best calculators I used and only 1 page. Uses slide bars that change the outcome automatically. The only drawback is you have to figure your SS by yourself, but they provide a link. 5 stars.
4 Factors to Consider:
- Are you factoring in Social Security benefits? Will they be around when you retire? Better plan for the worst if you are young.
- What will the tax and inflation rate be? Again, youngsters (anyone under 40) should plan for higher taxes and inflation in the future.
- What state will you live in when you retire? Some states don’t have income taxes.
- Will you be out of debt? I hope so! Get on the ball and let’s get this done. Contact me if you need a financial coach.