Will your savings be enough? This free retirement savings calculator projects your balance at retirement from your current savings, monthly contributions, employer match, investment returns and inflation. It compares the result with the income you want, including a pension or Social Security. You then see your surplus or shortfall in today’s money and the extra monthly saving you need.
How to use:
- Enter your current age, retirement age and the age you plan to live to.
- Add your savings, monthly contributions and any employer contribution.
- Set expected returns and inflation, then the monthly income you want.
- Click Calculate to see your projected balance, the amount needed and the growth chart.
Q: How much do I need to retire?
A: It depends on the income you want, your other income and how long retirement lasts. This calculator works out the amount needed in today’s money and compares it with your projected savings.
Q: What return rate should I use?
A: Many people use about 5% to 7% before retirement and a lower rate during retirement, because savings are usually moved into safer investments. Returns are never guaranteed, so try a few different numbers.
Q: Why does inflation matter?
A: Prices rise over time, so a large balance in the future buys less than it does today. The calculator shows your results in today’s money so they are easier to judge.
Q: What does the “extra per month” figure mean?
A: If your projected savings fall short of your goal, it is the additional monthly amount you would need to save from today to close the gap.
Q: Is this financial advice?
A: No. It is an estimate based on steady returns and the numbers you enter. A qualified financial adviser can give you personal advice.
