Planning for a comfortable retirement is, to a large degree, a matter of getting the numbers right. If you can determine your desired income for retirement, our retirement calculator will tell you how much you need to save each year to achieve that income. Traditionally, financial planners have estimated that retirees can maintain their standard of living with only 80 percent of their preretirement income.
However, given that people are retiring earlier than ever before, are living longer in retirement, and are much more active at least in the early retirement years, you may need to figure on 100 percent of preretirement income, especially if you intend to travel or indulge in other expensive activities.
In using this calculator, be honest with your expectations. If the numbers show that you’ll need to save a lot more each year than you anticipated in order to meet your retirement goals, try pushing your retirement age up a few years. Early retirees often do end up back in the job market, as much out of interest as out of necessity. Even adding just a few more working years can have a dramatic effect on the savings you can accumulate.
Once you have a retirement plan in place, revisit this calculator often and make adjustments to your savings as appropriate. With careful planning, you can ensure a comfortable and rewarding retirement.