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Retirement Needs Calculator
Our free, online "Retirement Calculator" is perfect for finding out how much you need to save in order
to reach your retirement goals.
Enter your information in the boxes below. Please do not include
commas or dollar signs. When you click "Calculate," the
amount you need to save each year will appear below.
Help with terms used on the calculator.
Retirement Needs Calculator Help
Current Age
What is your current age (rounded up to the next whole year)?
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Current Savings
How much do you currently have set aside for your retirement?
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Retirement Age
What is your desired retirement age rounded to the nearest whole year?
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Desired Income
How much money will you need to to cover living expenses for a full year once
you have retired? Individual circumstances vary, but here are some general guidelines
to help you:
- Minimum (50% to 60% of current gross income): This meets
the government's minimum level of financial adequacy (defined
as one-half
of pre-retirement income).
- Basic (70% to 80% of current gross income): Will allow
for the basics in retirement, particularly if you have employer-paid
retiree health insurance. Plan for a retirement with limited
money available for travel or luxury expenditures.
- Moderate
(80% to 90% of current gross income): May be required if
you will have to pay your own Medicare premiums and/or pay
for insurance to cover costs above Medicare.
- Comfortable (90% to 120% of current gross income): This
level may be needed if you would like a retirement lifestyle
that is more comfortable than your current lifestyle.
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Life Expectancy
What age do you expect to live to? Northwestern
Mutual offers an excellent interactive calculator to
help you assess longevity based on health, family history,
and many other variables.
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Inflation Rate
What is the average expected annual inflation rate over
the entire period encompassing your remaining working years
as well as your retirement years? Since 1913, statistics
show an annual average inflation rate of 3.3%. Since 1972,
the inflation rate has run at a 4.78% annual clip. A 2.5%
to 5% inflation rate is a reasonable projection for the
long-term future.
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Rate of Return
What is the average annual long-term investment return
you expect to earn on your retirement savings? The lower
the expected rate, the more you'll need to save to meet
retirement income goals. For stocks or mutual funds you
should consult a prospectus. Please be aware that past
performance is no guarantee of future performance.
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Tax Rate
What tax bracket are you in now and in what tax bracket
do you expect to be once you retire?
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