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Retirement Planning Calculator
Plan your retirement and see if your savings will sustain you throughout your life
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Retirement Planning Calculator
Plan your retirement and see if your savings will last throughout your life
How the Calculator Works
📈 Accumulation Phase
During your working years, the calculator shows how your savings grow through your monthly contributions and investment returns. It projects your total savings when you reach retirement age.
💰 Retirement Phase
Once retired, the calculator withdraws your annual expenses from your savings. Inflation is factored in, so your withdrawal amount increases each year. Your remaining savings continue to earn investment returns.
🎯 Sustainability Check
The calculator tells you if your savings will last until your life expectancy, and how much you'll have left (or be short).
📊 Key Parameters Explained
Annual Return Rate: Expected annual investment return on your portfolio (e.g., 7% for stock market average)
Inflation Rate: Expected annual increase in cost of living (e.g., 3% historical average)
Life Expectancy: Plan conservatively; increase if you expect to live longer
Annual Expenses: How much you plan to spend per year in retirement
💡 Tips for Better Retirement Planning
- Increase monthly contributions to build a larger retirement nest egg
- Consider a higher investment return rate with a more aggressive portfolio early on
- Plan for healthcare costs and long-term care in retirement
- Factor in Social Security or pension benefits
- Review and adjust your plan annually
- Consider working a few years longer if your savings fall short