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Retirement Calculator: Are You Ready to Retire?
You spend your whole life working toward retirement... but is your current plan enough to fund the golden years of your dreams? Use our Retirement Calculator to find out if you’re on track for retirement – and how to boost your savings if you’re not.
Our proprietary calculator will show you one of three main outcomes. You will also find free resources to improve your financial health.
How to Use the Retirement Calculator
Once you begin, enter your current age and the age you plan to retire. The third question prompts you to pick the country and state – or province – you live in. This is important because the cost of living varies across regions.
The following questions cover income level, amount of money saved and how much you’re going to save per month. The final two questions ask about your investing style and your planned retirement lifestyle.
Retirement Calculator Results
The three categories below are general results. When you complete the calculator, you’ll find additional information and resources.
1. Needs Improvement
We hate to break it to you, but... you’re a little behind when it comes to retirement readiness. But don’t panic – it’s not too late to play catch-up. Even if you’re just a few years away from retirement (or already retired), there are ways to step up your savings.
Put your money to work in the market (keep in mind that the closer you are to retirement, the less risk you should have in your portfolio) and look for areas where you can cut costs, like doctor’s bills or house payments (hello, downsizing). You may also want to consider delaying your retirement so that you can have a few more years of income to boost your funds.
2. Right on Track
You have a solid start to your retirement planning. And if you keep it up, you should cross the finish line with a nest egg that will last throughout your golden years.
But that doesn’t mean it’s time to just set it and forget it – there’s always room for improvement. The sooner you can increase your savings rate even more, the longer your money can grow, thanks to the power of compounding. And if you haven’t already done so, start maxing out your 401(k) or IRA contributions.
3. Above Average
Congratulations! It looks like a wealthy retirement is in your future. Take a moment to pat yourself on the back – all that saving and hard work have really paid off.
And since there’s no such thing as having TOO much money in retirement – or being too prepared in case of emergency or unexpected healthcare costs – continue growing your savings over time using the power of compounding.
Another helpful tip? Check your accounts regularly (once every six months will do) to make sure everything is still on track for your planned retirement date. As you get older, you’ll also want to adjust your risk by rebalancing your portfolio to protect that hard-earned nest egg.
How Much Do I Need to Retire?
One rule of thumb is to replace 70% of your preretirement income. When planning, it’s good to factor in your savings, investment income, Social Security and other income sources. You can find out your Social Security benefits on the Social Security website.
Our Retirement Calculator is just a starting point. Everyone is in a unique situation and has different requirements. Although, retirement planning boils down to earning more, spending less and making your savings work for you. Your investment income will eventually outpace your active earnings. To learn more about investing, check out some of the dividend investing articles on Wealthy Retirement.