The Retirement Calculator is a powerful tool that helps individuals plan for their retirement. By inputting essential financial information such as current savings, annual income, and desired retirement age, users can get a clear understanding of their retirement goals. The calculator takes into account factors like inflation, investment returns, and retirement expenses to provide accurate projections. With this information, individuals can make informed decisions about their retirement savings and make adjustments if necessary. Start using the Retirement Calculator today to secure a financially stable future.
The calculator is designed to estimate whether your retirement savings will last for your entire life based on various financial inputs. Here’s a breakdown of the key components:
- Pre-retirement Phase (Before Retirement Age):
- Your current age, retirement age, and life expectancy are input parameters.
- Annual pre-tax income, current retirement savings, monthly contribution, and pre-retirement rate of return are considered.
- The loop runs from the current age to the retirement age, adjusting the retirement savings based on income, contributions, and the pre-retirement rate of return.
- Post-retirement Phase (After Retirement Age):
- Post-retirement rate of return, monthly budget in retirement, inflation rate, and other income are taken into account.
- The loop continues from the retirement age onward, adjusting retirement savings considering the post-retirement rate of return, monthly budget, and inflation rate.
- Results:
- The calculator then checks whether your retirement savings will last your entire life or if you might run out of savings after a certain number of years in retirement.