Retirement Calculator
This is a simple retirement calculator for you to plan your personal finance after retirement with inflation considered. This retirement calculator gives out your annual balance with and without inflation adjustment. It also gives out the amount you can retrieve monthly after your retirement. However, retirement planning is a very complex issue. It will be influenced by many factors, such as tax rate, your unpaid loan, your dependents, 401K saving, social security etc. This retirement calculator did not consider these factors.
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Retirement is the life point when a person stops employment completely. Some people may semi-retire by decreasing work hours. The retirement age varies for different countries but it is generally between 55 and 70. The age is different for males and females in some countries. Most people choose to retire when they are ready. Yet, some are forced to retire due to various reasons, mostly illness and disability.
One of the most important factors affecting the retirement decision is the financial readiness. Wealthy people tend to retire earlier. In the United States, more than 60% percent of the non-retired believe that they will need to save half a million or more to retire. In the majority of the situations, people financially rely the on the following after retirement:
Social Security—it is a social insurance program run by the government to provide protection against poverty, old age, disability, etc. In the United States, around one-third of people expect Social Security to be their major source of income after retirement. On the other hand, more than 50% of the retirees expect Social Security to be their major source of income.
Pension—most public servants in the United States are not covered by Social Security but by the pension programs. Some private employers also provide pension benefits.
Retirement saving plans—normally refers to 401K and IRAs (Individual Retirement Account) in the United States. These are the savings from personal income with tax benefits. Many employers also provide 401K match on top of the personal contributions.
Investment incomes—such as stock dividends, real estate rental income, bank saving interest etc.
Personal savings—the money you saved in your bank, such as saving accounts, CD, checking accounts, etc.
To financially plan your retirement, please use this calculator to estimate each sources of the incomes listed above and add them up. When planning, be sure to consider the factor of inflation. The average inflation rate in the United States in the past 30 years is around 4.3%. Please check the inflation calculator for more information.