How Much Do I Need To Retire Comfortably?
Our retirement calculator provides you with your Target Retirement Balance. This number represents how much you should have saved before you decide to retire. It assumes that you’re planning to maintain a constant standard of living throughout your retirement. We also calculate the probability of you reaching your Target Retirement Balance using any one of our CycleWise Portfolios.
Age – Enter your age
Age at Retirement – When you decide to retire will have a significant impact on your finances during retirement. In order to receive your full social security benefit, your full retirement age is listed below:
- Born 1960 and later: 67
- Born between 1943 to 1959: 66
- Born before 1943: 65
Current Annual Income – We use this number to estimate what your cost of living will be in the future. This number is adjusted for inflation each year. It is also used to determine how much you will need to withdrawal from your savings once you retire.
Current Savings – This number is used as the starting balance of your plan. It will grow through contributions and returns.
Annual Savings – This tells us how much money you’re saving each year. This amount is added to your current savings each year and can significantly increases your chances of reaching your Target Retirement Balance.
Social Security Benefit – This number you can easily get from the social security administration website. It’s quick and easy. Click HERE to access the SSA quick calculator. Enter your annual income and date of birth, then select “Inflated (Future) dollars”. Click Submit Request.
You will be shown three options depending on when you decide to begin collecting your social security. Input the appropriate monthly dollar amount.
Investment Model – Select one of our five investment options. The back-tested performance of each portfolio will be used to determine the likelihood of reaching your Target Retirement Balance.
Target Retirement Balance – This number represents the amount that you should have saved to ensure that you don’t run out of money during retirement. We use 80% of your inflation adjusted pre-retirement income and a 4% withdrawal rate to arrive at this number. For more information on how this calculation works – Click here (link to retirement process).
Probability of Reaching Target – We take the information you inputted above and run one thousand scenarios to determine the likelihood of your reaching your Target Retirement Balance.
If the percentage is below 80%, we recommend that you consider changing some of your inputs. Try to:
- Increase your annual savings
- Opt for retiring a couple years later
- Or, you can select a more aggressive investment option
Everyone’s situation is different. We use powerful financial planning tools to help you plan for your unique retirement. Take advantage of our free retirement consultation. Click to request consultation
We’re dedicated to getting you on-track for your retirement.