Plan your financial future with our Retirement Calculator. Estimate your savings, expenses, and whether you’re on track for a secure retirement.
| Savings at Retirement | $0.00 |
|---|---|
| Required Savings | $0.00 |
| Shortfall/Surplus | $0.00 |
| Years Funded | 0 years |
| Monthly Withdrawal | $0.00 |
| Year | Age | Savings | Contributions | Interest | Withdrawals |
|---|
Retirement planning involves estimating your financial needs after you stop working and creating a strategy to meet those needs. It includes saving, investing, and budgeting to ensure you can maintain your desired lifestyle during retirement. A retirement calculator helps you project savings and expenses, factoring in investment returns and inflation.
Retirement savings are calculated using compound interest and growing contributions:
Savings: A = P (1 + r/n)^(nt)
Contributions: FV = C * [((1 + r/n)^(nt) - 1) / (r/n)]
Where:
Required savings are calculated as the present value of inflation-adjusted expenses over retirement years. For example, a 30-year-old saving $833/month with $50,000 initial savings, 7% return, 2% inflation, and $40,000 annual expenses until age 85 may have $1.2M at age 65, against $1.5M required, indicating a shortfall.
Retirement planning ensures financial security, allowing you to cover expenses, maintain your lifestyle, and handle unexpected costs. Without planning, you risk outliving your savings or relying on limited income sources like Social Security. Early planning leverages compound interest, significantly growing your savings over time.
Several factors influence retirement savings:
Explore related tools like our Compound Interest Calculator to understand savings growth.
To enhance your retirement savings: