Retirement Calculator

Shawn Plummer

CEO, The Annuity Expert

Do you know how much money you will need to save to retire comfortably? If the answer is no, don’t worry – you’re not alone. Retirement planning can be a difficult process, but it’s important to start as early as possible. That’s why we’ve gathered some of the best calculators online to help make the process a little bit easier. With these calculators, you can get a realistic idea of how much money you will need to save to achieve your retirement goals. So what are you waiting for? Start using our retirement calculator today!

Calculate Your Retirement Savings

Our free retirement calculator utilizes today’s dollars to foretell your potential retirement nest egg and how it could expand over your retirement. We factor in inflation when making our predictions, and we make assumptions that include the following:

  • The length of time you will save.
  • Your monthly contribution amount.
  • The amount invested so far.
  • Expected rate of return.
  • A 2.9% inflation rate. (You can adjust this rate)
  • Your expected retirement return rate.

Calculate Your Retirement Income

The only method to accurately project your retirement income from your savings, one must use an annuity. Why? Because annuities are the only retirement plans that guarantee your future income. Once retired, the annuity will provide a fixed paycheck for the rest of a person’s lifetime, even after the retirement account has run out of money.

To use this realistic calculator, enter your current age, resident state, current retirement savings amount, and target age to retire. The calculator will reflect actual investment results, giving you a better idea of when to start withdrawing from your retirement plan and if you should wait until full retirement age.

  • Rating Column = Insurance Company’s Financial Rating
  • Income Column = Annual Income Amount For Life
  • 10-Year Total = The Total Amount Of Payments You’ve Received Over 10 Years
  • 30-Year Total = The Total Amount Of Payments You’ve Received Over 30 Years

Note: You can purchase an annuity (with no tax penalties) with your 401(k), IRAs, retirement accounts, investments, and cash.

Don’t Forget Social Security Benefits

Social Security can complement annuities, investments, and savings as part of an income planning strategy.

  • Annuities are financial products that provide a steady income stream for a certain period or the rest of your life.
  • Investments, such as stocks, bonds, and mutual funds, can also provide income through dividends and interest.
  • Retirement savings, such as a 401(k) or IRA, can generate income through interest or by withdrawing funds.

By combining these different sources of income, you can create a plan that provides a stable, reliable source of income to cover your annual retirement expenses. Social Security can provide a foundation for your income. In contrast, annuities, investments, and retirement savings can provide additional income to supplement your Social Security and help you to maintain your desired standard of living.

One potential benefit of combining Social Security with annuities, investments, and retirement savings is that it can provide flexibility and control over your and your spouse’s income.

For example, you can start receiving your Social Security income later to receive a higher monthly benefit amount and use your annuities, investments, and savings to cover your expenses. This can help to ensure that you have a steady source of income throughout your retirement, even if your needs or circumstances change.

In addition, combining these different income sources can help reduce the impact of market volatility or other factors that may affect your investments or retirement savings plan. Because investing involves risk, if the value of your investments decreases, you can rely on your Social Security benefits and annuity income to help cover your expenses until your investments recover. This can help to provide a measure of financial security and stability in retirement.

Overall, combining Social Security benefits with annuities, investments, and retirement savings can provide a well-rounded, flexible income strategy that can help you maintain your desired living standard and protect against financial challenges in retirement.

How Do I Save For Retirement?

One of the most important financial decisions you will make is how to budget and save. There are several factors to consider, such as when you want to retire and how much income you will need to support your lifestyle.

A retirement investment calculator can be a helpful tool in estimating how much you need to save. Generally, it is recommended that you set aside 10-15% of your monthly income for retirement.

One way to save is to invest in an annuity.

Unlike 401(k), traditional, and Roth IRA accounts, deferred annuities are tax-advantaged retirement accounts with no contribution limits that allow you to grow your retirement funds over time and receive guaranteed payments later.

Why is this so important?

The deferred annuity is the only retirement savings plan that can show precisely how to achieve your income goals on a contractual guaranteed basis despite the future performance of your savings accounts. The annuity takes all the guesswork out of retirement.

Unlike an individual retirement account (IRA), 401(k), and other retirement accounts, nonqualified annuities reduce your taxes in retirement because only the interest earned is considered taxable income. These tax benefits allow you to take advantage of most of your gross income.

Regardless of how you save, starting early and making consistent contributions is essential to provide a comfortable retirement.

Tell Me The Best Way To Save For Retirement.

When it comes to saving for retirement, there’s no one-size-fits-all approach. The best way to save will vary depending on your circumstances and goals. However, there are a few general tips that can help make it more efficient.

  • First, set a target retirement age and ensure you contribute enough to reach your investment objectives. Include estimated Social Security (preferably at full retirement). Decide whether to fund the savings account with pre-tax income or post-tax income.
  • Second, consider investing in an annuity. An annuity will reverse engineer how much you need to contribute each month to achieve your target retirement savings goal.
  • Finally, don’t forget to take advantage of any employer matching programs.

By following these tips, you can ensure that you’re on the right track to a comfortable retirement.

When’s Your Perfect Retirement Age?

There is no one-size-fits-all answer to the question of the perfect age. Instead, the right age to retire will depend on various factors, including personal goals, financial situation, and health.

One important consideration is your eligibility for Social Security benefits.

  • In general, you can start receiving Social Security at your full retirement age, determined by the year you were born.
  • If you start receiving benefits before your full retirement age, your benefits will be reduced, while if you wait until after, your benefits will be increased.
  • The Social Security Administration says you can receive your benefits as early as age 62, but doing so will permanently reduce your monthly benefit amount.

Another important consideration is your financial situation. Ideally, it would be best to have enough savings and other income sources to cover your retirement expenses. This may require careful planning and save throughout your working years. You should also consider factors such as inflation and market volatility, which can affect the value of your retirement savings accounts and investments over time.

Your health is another essential factor to consider when deciding when to retire. For example, suppose you are in good health and can continue working. You may delay your retirement to save money and earn your full Social Security benefits. On the other hand, if you are in poor health or have a medical condition that prevents you from working, you may need to retire earlier than you had planned.

Ultimately, the perfect age will be different for everyone. Therefore, it is essential to carefully evaluate your personal goals, financial situation, and health and to consult with a financial advisor or other professional, if necessary, to determine the right time to retire.

How much do you need to retire?

Most financial experts recommend enough money saved to provide 80% of your pre-retirement income. So if you’re earning $50,000 in annual income, you’ll need roughly $40,0000 per year. If you have other sources of income, such as a pension or Social Security, you may not need to save as much.

A Free Realistic Retirement Calculator For Savings And Income Goal Planning With Social Security, Pensions, And Investments

The 4% Rule

For generations, financial advisors have advocated the 4% rule to ensure that retirees never run out of money. The rule goes like this: If you withdraw 4% of your portfolio each year, you can expect your money to last for 25 years.

But is this true?

Recent studies have shown that the 4% rule is no longer accurate.

In today’s low-interest environment, generating enough income from an investment portfolio to sustain a 4% withdrawal rate is almost impossible. And, with life expectancy rates rising, many retirees find that their money needs to last for 30 years or more.

So what’s the solution?

One option is to purchase an annuity, which will provide guaranteed income for life. This can help to ensure that you never outlive your nest egg. However, annuities have pros and cons, so be sure to speak with your financial advisor (or contact us) for investment advice to see if they’re right for you.

How Long Can Your Money Last?

The table below compares using an annuity to distribute your income by systematically withdrawing from retirement plans or through financial advisors.

FeaturesAnnuity401(k)IRARoth IRA
Withdrawal Percentage5.20% – 6.55%4%4%4%
Can Income Increase?YesYesYesYes
Can Income Decrease?NoYesYesYes
How Long Will Money Last?Lifetime30 Years+30 Years+30 Years+
Annual Fees0 – 1.50%1% – 4%1% – 4%1% – 4%
Death BenefitAccount BalanceAccount BalanceAccount BalanceAccount Balance

Example: A 60-year-old retiree starts withdrawing immediately from their $1 million portfolio, they would receive:

Impact Of Inflation On Retirement Savings

For many people, retirement savings are a crucial part of their financial planning. However, inflation can significantly impact the value of these savings over time.

Like Social Security Benefits, an annuity is a type of investment that can help to protect against this by providing a stream of income that increases along with the cost of living. This can help retirees maintain their standard of living even as prices go up.

Additionally, some annuities offer unique features that help keep up with inflation, such as cost-of-living adjustments.

By including an annuity, people can help ensure the purchasing power of their retirement savings will last as long as they need them and maintain the value of today’s dollars.

Next Steps

The best way to ensure a comfortable retirement is to plan for it as soon as possible. And the earlier you start saving, the better off you’ll be. There are many ways to budget and save, and each person’s needs will differ. But our retirement calculator can help you understand how much money you’ll need to retire comfortably. Consider investing in a guaranteed return plan if you want extra security in your golden years. We can help you find the perfect retirement plan for your needs and budget. So don’t wait – contact us today for a quote.

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Frequently Asked Questions

How much realistically do I need to retire?

A good rule of thumb is to aim for a retirement income that is 80% of your pre-retirement income.

What is the best retirement calculator?

The best retirement calculator for you will estimate how much income you’ll need at retirement age and recommend ways to help you reach your goal.

What is the 70% rule for retirement?

The 70% rule is a guideline that says you should expect to need 70% of your current income in retirement. This rule assumes that you will no longer have work-related expenses, such as transportation and clothing costs. However, you may still have other expenses, such as healthcare costs.

What is a good retirement per month?

A good general rule of thumb is to aim for an income that is 80% of your pre-retirement income. This will give you a good starting point to estimate how much retirement savings you’ll need to retire.

What is the average Social Security Benefits check?

According to the Social Security Administration, the average monthly Social Security retirement benefit for retired workers is $1,542.22.

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Shawn Plummer

CEO, The Annuity Expert

I’m a licensed financial professional focusing on annuities and insurance for more than a decade. My former role was training financial advisors, including for a Fortune Global 500 insurance company. I’ve been featured in Time Magazine, Yahoo! Finance, MSN, SmartAsset, Entrepreneur, Bloomberg, The Simple Dollar, U.S. News and World Report, and Women’s Health Magazine.

The Annuity Expert is an online insurance agency servicing consumers across the United States. My goal is to help you take the guesswork out of retirement planning or find the best insurance coverage at the cheapest rates for you. 

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