How Much Do I Need to Retire – Retirement Savings Calculator

Did you know that nearly 45% of Americans who retired last year did so because of health problems, to care for a family member, or because they were forced to retire? 64% of working Americans are not on track to retire comfortably. This number is even higher in minorities. Do you have money saved if you were forced to retire involuntarily? Are you making these 5 mistakes that are putting your retirement in jeopardy? Use my retirement savings calculator to find out.

I get it! You are nowhere close to retiring from work yet. I am not, either. But you need to have a plan before you even think of retiring. Do you know how much you need to save before retiring? Use our retirement savings calculator to find out. Also, use this retirement calculator to learn how much you could potentially save based on how much you contribute towards retirement each month. While it’s impossible to predict how much you need to save, and a lot of it is based on a few assumptions, this retirement savings calculator will help you get a rough estimate and give you a general sense of where you need to be.

Saving For Retirement Savings Calculator

Enter Estimates Below

Current Age
Estimated Retirement Age
Estimated Age at Death
Current Annual Income
Retirement income requirement as a % of pre-retirement income
Estimated Rate of Return of Retirement Assets
Desired Legacy
Calculate how much I need to retire

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Retirement Calculator Results

Projected Snapshot of your retirement savings

Savings Needed
$ 400
Time to retire
30 years
Time in Retirement
30 years
$ 400

Are you ready to save for retirement?

Yay! I am so excited for you. You’ve nailed the second step to investing!
It’s great that you think you can build a retirement portfolio. Let’s see how you can get there and fast.
I understand this can be hard. Especially, if you are new to the world of personal finance. But YOU can do this! You have taken the first step of self-awareness. Let me show you how you can achieve your retirement goal.

Let’s go step by step.

Let’s first determine your annual income requirement post-retirement. Typically, people have their mortgage paid off by the time they retire. So, you may think you need less than your pre-retirement income.

However, don’t forget to consider these three important factors for retirement –

In retirement, you won’t be working, and with all that spare time, you may want to travel or take up hobbies. And guess what that means?

A greater income requirement.

Second, your children may be out of school, and you may want to support their future education or business, and that warrants some income.

Finally, as you age, you may incur medical expenses. And this, by far, is the biggest factor to consider. I don’t need to tell you, but quality healthcare in the United States is very expensive, and you want to make sure that you have enough saved to pay for insurance and any unexpected bills. Plus, long-term care can run into 6 figures a year for just one person.

Depending on your situation, your annual retirement income requirement could be between 60 to 120% of your pre-retirement income. It’s always better to err on the side of caution.

The next step is determining your mortality. Like it or not, YOLO is drivel. You don’t live once. You die once. You do live, hopefully, a long, healthy, happy life.

With the evolution of medicine, people are living longer than their ancestors. The average life expectancy for a regular individual is between 75 and 80 years.

So if you plan to retire at 60, expect to live about 15 to 20 years, on average, in retirement. And that’s just the average. You may even live to 100, so be prepared to live about 40 years in retirement. And if you plan to retire early, in your 40s or 50s, you could spend a lot many years in retirement.

You don’t want to run out of money before you die, and you also don’t want to be sad to live longer just because you are broke.

How to use this retirement savings calculator

Enter the following inputs.

  • Current age
  • Retirement age
  • Estimated longevity
  • Current annual income
  • Retirement income you need as a percentage of annual income
  • Annual inflation rate
  • Estimated return your retirement assets can generate
  • Amount you wish you leave as your legacy
  • Click Calculate to get your retirement amount

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