How Much To Save For Retirement Calculator
Need to know how much to save for retirement calculator? Now is the time to be thinking about retirement. Planning for the future is very important, and this article will help you make the best choice and the best way to save for retirement. The following article outlines the necessary items to plan and calculate your retirement. Each is given a short description and each are to be calculated to give you a clear picture of what you need to do to save for retirement.
Retirement Plan Calculator Inputs:
1. Current age. Your current age as of today.
2. Age of retirement. The age you plan to retire.
3. Household income. Your total household income.
4. Current retirement savings. Total amount you have currently saved. This includes your 401K plan, CDs and bonds.
5. Rate of return before retirement. This is the annual rate of return you expect on your investments before taxes. It is important to note that the rate of return before retirement cannot be easily predicted. Therefore, give great consideration to this part of the retirement calculation.
6. Rate of return during retirement. The annual rate of return you expect from your investments during retirement. This rate is usually lower than the return earned before retirement. The rate of return is greatly dependent on the type of investments you choose.
7. Percent of income to contribute. This is the percentage of your annual income that you will save for your retirement objectives.
8. Expected salary increase. The annual increase you expect in your household income.
9. Years of retirement income. Total number of years you expect to be retired. It may be wise to calculate for more just in case you live longer than expected.
10. Percent of income at retirement. This is the percent of income you plan to earn during your working years for retirement.
11. Expected rate of inflation. Put in the expected percentage of inflation rate you believe you will have before and during retirement.
Note: If you are married or receiving social security, be sure to include these in your retirement calculator.