Retirement Age Calculator
Determine the age you can retire, based on your current savings, future investments, and expected rate of return.
How to use the Retirement Age Calculator
This calculator will help you answer the question, “At what age can I retire considering the current value of my retirement fund and my future investments?”
Here are the inputs you’ll need to enter:
- Your current age
- The total of your current retirement savings
- The amount of your monthly investment contribution
- The average rate of return you expect on your investments
- Your target retirement savings goal
Once you’ve entered all required inputs, just click the Calc button at the bottom of the calculator.
This tool will help you determine the following details:
- Retirement age: The age you can retire based on your inputs.
- Contributions (#): How many monthly investment contributions you’ll need to make in order to retire on time.
- Total amount invested: The total of your monthly investments.
- Interest earned: The total interested earned on your investments.
- Est. Final Value: The total of your investments plus interest earned by the time you reach your targeted retirement age.
- Last Deposit Date: The date of your last monthly investment contribution before you retire.
For additional explanation, click the Help button.
Additional options:
- Click the $ sign at the bottom of the calculator to change the currency
- Click mm/dd/yyyy to change the date format
- Click the + or – to increase or decrease the size of the calculator
- Click Print to print a screenshot of the calculator with your inputs and their results
- Click Schedule to see a detailed loan payment schedule based on your inputs
- Click Charts to see three graphs that visually represent your loan payments over time
How much do you need to save for retirement?
Determining how much to save for retirement is a financial planning step that varies from person to person based on individual goals, lifestyle expectations, and financial circumstances. To arrive at an appropriate retirement savings target, consider these steps:
1. Set Clear Retirement Goals: Begin by envisioning your retirement lifestyle. Consider factors such as where you want to live, the activities you’d like to pursue, and the kind of retirement you desire. Setting specific goals will help you estimate your retirement expenses more accurately. Remember to account for potential healthcare costs, leisure activities, housing, and any travel plans. Keep in mind that your goals may evolve over time, so revisit and adjust them periodically.
2. Calculate Your Retirement Expenses: Once you have a clear picture of your retirement goals, estimate your future expenses. Factor in inflation, which can significantly affect the purchasing power of your savings over time. A common rule of thumb is to aim for replacing 70% to 80% of your pre-retirement income to maintain a comfortable retirement lifestyle. However, your actual expenses may vary, so it’s essential to create a detailed budget that includes all anticipated costs.
3. Assess Your Current Savings and Investment Strategy: Evaluate your current retirement savings, including any contributions to employer-sponsored plans (like a 401(k)) and personal retirement accounts (like an IRA). Use retirement calculators or consult with a financial advisor to determine if your current savings trajectory aligns with your retirement goals. Consider your investment strategy as well; the right mix of assets in your retirement portfolio can significantly impact your savings’ growth. Adjust your contributions and investments as needed to reach your retirement savings target.
Saving for retirement is a dynamic process, and it’s essential to regularly review and adjust your plans as circumstances change. Seek guidance from financial professionals when needed to ensure you are on the right track toward a financially secure retirement.
How to build your retirement fund as a late saver
Starting to save for retirement later in life may require some adjustments and focused effort, but it’s never too late to begin securing your financial future. Here are five steps to help you get started:
- Assess your current financial situation: Begin by taking a close look at your current financial situation. Calculate your assets, including savings, investments, and any retirement accounts you may already have. Evaluate your monthly expenses and income. Understanding your financial standing is crucial for setting realistic retirement savings goals.
- Adjust your budget: Make adjustments to your current spending plan that prioritizes retirement savings. Identify areas where you can cut unnecessary expenses and allocate those funds towards retirement savings. Be disciplined about sticking to your budget, and consider automating contributions to retirement accounts to ensure consistent savings.
- Maximize retirement account contributions: Take advantage of tax-advantaged retirement accounts, such as 401(k)s, IRAs, or similar plans available in your country. Contribute as much as you can afford, and if you’re 50 or older, make use of catch-up contributions, which allow you to contribute more than the standard annual limits.
- Increase your income: Making more money can be a huge boost to accelerating your retirement savings. With higher earnings, you’ll have greater flexibility to reduce debt and allocate more funds towards investments. Consider finding a side hustle or starting a small business to create more income streams.
- Seek professional advice: Consider consulting with a financial advisor or retirement planner. They can help you create a tailored retirement savings strategy based on your specific circumstances. They can also help you make informed investment decisions that align with your goals and time horizon.
While starting to save for retirement later in life may require more aggressive saving and potentially some lifestyle adjustments, it’s still possible to build a secure financial future. The key is to take action now and remain committed to your retirement savings goals.