Retirement Savings Calculator
Determine how much you need to save every month in order to achieve your retirement savings goal.
How to use the Retirement Savings Calculator
This calculator allows you to determine how much you need to save every month in order to reach your retirement savings goal.
With this tool, you can estimate (based on your inputs) your monthly retirement fund investment, and the number of months you’ll need to save. The calculator will also tell you the total amount of savings you invested, the total interest you earned (based on your input rate), and the final value at the date of retirement.
Once you’ve entered all required inputs, just click the Calc button at the bottom of the calculator.
For an explanation of the inputs and outputs, 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 investment schedule based on your inputs
- Click Charts to see three graphs that visually represent your investments over time
How to increase your retirement readiness
Increasing retirement readiness is a vital financial goal that involves careful planning and disciplined saving. Here are seven steps to help you become better prepared for retirement:
- Set clear retirement goals: Define your retirement goals, including when you want to retire, your desired lifestyle, and anticipated expenses. Having clear objectives will help you determine how much you need to save.
- Create a retirement budget: Develop a comprehensive budget that outlines your expected retirement expenses, including housing, healthcare, leisure, and other daily costs. Make sure to account for inflation when projecting future expenses.
- Maximize retirement account contributions: Contribute as much as possible to tax-advantaged retirement accounts, such as a 401(k) or IRA. Take advantage of employer matching contributions, if available, as it’s essentially free money added to your retirement savings.
- Regularly review and adjust: Periodically review your retirement savings plan and make adjustments as necessary. Consider increasing your contributions as your income grows or when you receive windfalls like bonuses or tax refunds.
- Invest wisely: Diversify your investment portfolio to spread risk. Consider your risk tolerance, time horizon, and retirement goals when selecting investments. Regularly review and rebalance your portfolio to maintain your desired asset allocation.
- Eliminate debt: Prioritize paying off high-interest debt, such as credit card balances, before retirement. Reducing debt reduces financial stress and frees up more money for saving and investing.
- Seek professional guidance: Consult with a financial advisor or planner to create a personalized retirement savings strategy. They can provide expert advice on investments, tax planning, and overall financial planning.
Preparing for retirement and building financial security for your future requires continuous effort and adjustment. By following these steps and remaining committed to your retirement goals, you can increase your retirement readiness and have confidence in your financial future.