Ever wonder how much you might need saved in order to retire comfortably? Use this Retirement Cost Calculator to get an estimate:
1. Enter your age and income. Click Next, and enter how much you have saved for retirement and how much of a raise you expect every year.
2. Enter the age you expect to retire and how many years you plan to spend in retirement. Of course, you don't know for sure when this will happen, but take a best guess. Trying to figure out how much it would take to retire early? Enter the early retirement date, and extend the number of years in retirement.
3. Enter the percent of income you expect to need in retirement. This is another one you won't know an exact answer to, so take an educated guess. A commonly used number is somewhere between 60 and 80%, depending on what retirement looks like to you. Factors to consider include:
-Will you need to pay tax on your retirement income?
-Do you plan to live in a paid-off house or buy a new place?
-Do you have goals such as traveling, gifting money, or anything else that will
increase your spending?
-Do you anticipate having higher health care costs in retirement?
4. Enter the return on investment you expect before and after retirement. Talk with an advisor if you need help deciding on reasonable numbers.
5. Click Calculate. The second number, "When you begin retirement, you will need to have the following amount saved" is intended to help you get a sense of how much you might need saved in order to maintain your current lifestyle in retirement.
6. Use the Investment Calculator to find ways to help you reach this goal.