Retirement Calculator
Exponent Investment Management retirement calculator takes your goals and anticipated income requirements and projects how much savings you may need to retire comfortably. In addition, the tool will determine whether you’re on track to reach your goal by projecting the amount of additional savings you should make every month.
The resulting analysis provides a projection of what your monthly lifetime income payments (after taxes) will be throughout your retirement, as well as the estimated future balances for your retirement account. The calculator utilizes an annuitization approach to calculate these payments and the total future value of your retirement account. The projected future balances are based on the current account balance and your age at retirement. The projections then develop two levels of lifetime payments; one for the participant only (with no survivor benefits) and another for both the participant and spouse with 50% survivor benefits for the spouse.
How to Use a Retirement Calculator to Plan Your Savings
In retirement, you will need to replace your pre-retirement household income (before taxes) in order to meet your expenses. The retirement calculator estimates what you will need in order to replace this income, assuming that you stop working and start drawing down from your savings.
Depending on your lifestyle, the number of years you expect to live in retirement, and the level of lifestyle you hope to have, you may need up to 75% or more of your annual pre-retirement income. The calculation is complex, but the general rule of thumb is to save 25 times the annual income you expect to need in retirement.…