Calculating the Amount of Money Needed for Retirement

The first query would be when you would like to retire. Knowing when you will retire is important as it indicates to you how much time you need to save up, & how long you will be living off your retirement savings & income. Although the US statistics indicate that man's life expectancy averages at 76 years elderly, & females at 81, there's other issues to think about like general health & lifestyle. Some calculators would include these issues in as well.

There is a time when you will need to retire from your work, whether it is a couple of years down the road, or a few decades later. Whichever it is, it is seldom late to plan for your retirement. There's lots of retirement calculators available online which will help you find out how much money it is possible for you to to save in time for your retirement, or how much you will need for it. Specialists recommend that you will need at least 70% of your current income in order to live comfortably when you retire. This would actually differ from individual to individual, thinking about that the circumstances for each person will be different. Here are some things that a retirement calculator will factor in.


Of work, there is the lifestyle you dream of. The type of retirement lifestyle you objective for would affect how much you will need to save or spend then. For example, in the event you are planning to travel, you may need lots of savings for travel fare, food, & what not. On the other hand, in the event you are planning to open a consultation firm or work part time, you will probably need to save less.

Another thing that will be asked is your current living expenses, & the changes in them as of now & when you retire. You will even be asked about your mortgages & major loans or debts which would add on to how much you will need to put aside apart from your savings for your retirement, or in the work of your retirement.

Last but not least, you will need to include the financial resources for your retirement savings. Try to give a realistic or the minimal income from your 401k, IRA, Roth IRA, Social Security & other sources as it is better to under-calculate than over-calculate.