Retirement Calculators

Shawn Plummer, CRPC

Chartered Retirement Planning Counselor

How Much Do I Need to Retire?

You should consider certain factors when estimating how much you need to retire. Think about your desired retirement age, your current age, and how long you expect to live. Next, take into account your current savings and monthly expenses. Lastly, don’t forget to consider the expected rate of return on your investments.

Jarad Stolz, a Chartered Retirement Planning Counselor at Georgia Safe Retirement Planners, suggests aiming for a retirement income of 70-90% of household income. Use the 4% rule: withdraw 4% of your retirement savings annually. Use the retirement calculator below to calculate how much money you save to retire.

Retirement Savings Calculator

Use this retirement calculator to help you create your retirement plan. You can see the balance of your retirement savings each year. See how much you withdraw each year until retirement ends. Social Security is also calculated on a sliding scale based on your income. Including a spouse who doesn’t work boosts your Social Security benefits. This increase won’t go beyond the maximum allowable amount.

Calculating Your Retirement Savings Needs

  1. Determine Annual Expenses: Estimate your yearly retirement expenses.
  2. Adjust for Inflation: Calculate future costs by using an inflation rate (e.g., 3%).
  3. Calculate Total Retirement Needs: Multiply annual expenses by the number of years in retirement.
  4. Subtract Current Savings: Deduct your current retirement savings from the total need.

The amount you need to save for retirement depends on your desired annual income and retirement age. For example:

  • To retire with an annual income of $100,000, you need about $1,388,889 by age 60, $1,261,034 by age 65, or $1,169,591 by age 70.
  • To retire with an annual income of $50,000, you need about $694,444 by age 60, $454,543 by age 65, or $315,388 by age 70.

Factors Influencing Retirement Savings

  1. Retirement Age: The age at which you plan to retire impacts how much you need to save.
  2. Life Expectancy: Longer life expectancy increases the amount needed.
  3. Living Expenses: Estimate your annual living expenses in retirement.
  4. Inflation: Account for the impact of inflation on future expenses.
  5. Investment Returns: The expected return on your retirement investments.

Tips For Saving For Retirement

Saving for retirement can be a challenge, but there are some things you can do to make it easier. Here are a few tips:

  • Start early. The sooner you start saving for retirement, the more time your money has to grow.
  • Save regularly. Try to make saving for retirement a habit by setting up automatic contributions to your retirement account.
  • Save as much as you can. The more you save now, the less you’ll worry about later.
  • Invest wisely. Be sure to diversify your investments to help reduce risk.
  • Save with tax-advantaged plans. Taxes are likely to increase only in the future, so save with retirement plans that reduce the tax bill in future retirements, like a Roth IRA, non-qualified deferred annuity, or life insurance policy.
  • Take the guesswork out of your retirement. Annuities are the only retirement plan that can tell you exactly how much you need to save today to reach tomorrow’s retirement income goals.

Saving for retirement can be challenging, but starting early and saving as much as possible is essential. So contact us today to get started on the right track.

How Much Do I Need To Retire?

Retirement Income Calculator

Our retirement income calculator uses an annuity with a Guaranteed Lifetime Withdrawal Benefit for income distribution and generates realistic (not hypothetical) estimates. When you reach retirement age, the annuity contractually guarantees you will pay a fixed monthly income for the rest of your life, including after the account has been spent down to ZERO. Unlike other investments, whose returns might vary, payments are guaranteed no matter the market conditions or your lifespan. Funding can come from cash, IRAs, 401(k), 403(b), 457 plans, Thrift Savings Plans, Roth IRAs, 401(a), and other retirement accounts without tax issues.

Realistic Retirement Calculator To Calculator Savings

When Can I Retire?

The age for retirement varies based on country, career, and finances. However, a typical retirement age is around 65. Individuals can evaluate retirement readiness by considering savings, expenses, and future financial goals.

What Is The Average Retirement Income in the U.S.?

According to the U.S. Census Bureau, the average monthly retirement income in the United States is $4,381.25, equating to an annual income of $52,575 for adults aged 65 and older. This income typically comes from a combination of Social Security benefits, pensions, retirement savings accounts like IRAs and 401(k)s, and other investment sources. Understanding these income streams and their potential contributions is crucial for effective retirement planning.

What Is The Average Retirement Age?

The average age at which people retire in the USA is around 66.

When Can I Start Collecting Social Security?

A person can receive Social Security retirement benefits as early as 62. Claiming benefits at this age results in a reduced amount. Waiting until full retirement age (FRA) yields more money. FRA ranges from 66 to 67, depending on birth year. Delaying benefits beyond FRA up to age 70 increases the monthly benefit amount.

Social Security Retirement Age Chart

Birth YearFull Retirement Age
1943-195466 years
195566 years and 2 months
195666 years and 4 months
195766 years and 6 months
195866 years and 8 months
195966 years and 10 months
1960 & later67 years

Best Retirement Income Streams

To ensure a stable and sufficient retirement income, it is essential to diversify your income streams. Key options include:

  • Part-Time Work: This is for those who prefer staying active and earning additional income.
  • Fixed-Indexed Annuities: These offer Guaranteed Lifetime Withdrawal Benefits (GLWB), providing market protection and guaranteed income.
  • Social Security Benefits: A significant source of income for most retirees.
  • Pension Plans: If available, these can offer a steady income.
  • Investment Portfolios: Diversifying investments can balance risk and return.
  • Real Estate Investments: Rental income can provide a reliable income stream.
  • Savings Accounts and CDs: Safe but generally lower-yield options.

Retirement Considerations

Consider the following factors when calculating how much you need to save for retirement and when you should retire.

  1. Current Age and Desired Retirement Age: This determines your saving timeframe.
  2. Life Expectancy: A longer life expectancy requires more savings.
  3. Retirement Lifestyle: The desired quality of life in retirement impacts how much you need to save.
  4. Current Savings and Investments: Includes existing retirement accounts, other savings, and investments.
  5. Expected Rate of Return: Assumed rate of return on investments before and after retirement.
  6. Inflation: Affects the purchasing power of your savings over time.
  7. Sources of Retirement Income: Social Security, pensions, rental income, etc.
  8. Healthcare Costs: Expected medical expenses, which typically increase with age.
  9. Taxes: Impact of taxes on retirement savings and income.
  10. Spousal Finances: Include your spouse’s savings and retirement plans if applicable.
  11. Unexpected Expenses: Contingency for unforeseen costs like long-term care.
  12. Inflation and Cost of Living Adjustments: These affect how much you’ll need annually.
  13. Social Security Benefits: Timing of benefits can impact retirement income.
  14. Employer Benefits: Pension plans, 401(k) matching, and other benefits.

Each person’s situation is unique. So, these factors should be customized to individual circumstances. Consulting with a retirement planner, like The Annuity Expert, provides personalized guidance for each individual.

How We Can Help

At The Annuity Expert, we understand that planning for retirement is a personal journey. We’ve been an insurance agency, annuity broker, and retirement planner for 15 years, dedicated to helping individuals like you achieve financial security.

Your Core Problem and Our Solution

Planning for retirement involves navigating complex financial decisions, from determining the right amount to save to selecting the best investment options. The main problem is ensuring you have enough savings to sustain your desired lifestyle throughout retirement. This involves understanding your financial goals, expected expenses, and the impact of inflation and investment returns.

You may feel anxious and uncertain about whether your current savings and investment strategy will meet your future needs. We empathize with these concerns and have the expertise to provide tailored solutions. Our goal is to find the best retirement plan at the lowest cost, ensuring you achieve financial peace of mind.

Simple Retirement Savings Calculator

What We Recommend

Step 1: Initial Consultation

  • What Happens: Contact us for a free consultation. We’ll discuss your retirement goals, current financial situation, and any concerns you have.
  • Main Benefit: Personalized advice and a clear understanding of your retirement planning needs.

Step 2: Customized Retirement Plan

  • What Happens: Based on your consultation, we’ll create a customized retirement plan tailored to your needs. This plan includes savings targets, investment strategies, and tax-efficient solutions.
  • Main Benefit: A clear, actionable roadmap to achieve your retirement goals.

Step 3: Implementation and Ongoing Support

  • What Happens: We’ll help you implement your retirement plan and provide ongoing support to adjust it as needed. This includes monitoring your investments, updating your plan for life changes, and ensuring you stay on track.
  • Main Benefit: Continuous guidance and adjustments to ensure your retirement plan remains effective and aligned with your goals.

Features and Benefits

  • Personalized Advice: Tailored solutions based on your unique needs.
  • Expert Guidance: Leveraging our 15 years of experience to find the best options for you.
  • Comprehensive Planning: Covering all aspects of retirement, from savings to investments and taxes.
  • Ongoing Support: Continuous monitoring and adjustments to keep you on track.
  • Cost-Effective Solutions: Ensuring you get the best value for your money.

Overcoming Common Objections

  • “I can’t afford to save more right now.” We help you find ways to optimize your current budget and identify potential savings opportunities.
  • “I’m not sure if I need professional help.” Our expertise and personalized advice ensure you make informed decisions that maximize your retirement benefits.

Failing to plan adequately for retirement can lead to financial insecurity and stress. By working with us, you’ll experience peace of mind, knowing you have a solid plan in place. Imagine the confidence and relief you’ll feel, knowing your future is secure and your retirement dreams are within reach.

Contact us today for free advice or a quote, and take the first step towards a secure and comfortable retirement.

Let Us Take The Guesswork Out Of Your Retirement

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Frequently Asked Questions

How much money do you need to retire?

The amount you need to retire depends on your desired lifestyle, location, and how long you expect to live in retirement. A common rule of thumb is the “25 times rule,” suggesting you need 25 times your annual expenses to retire comfortably. If you spend $40,000 a year, aim for $1 million saved. This figure can vary based on other income sources like Social Security or pensions and your financial goals and circumstances.

What is the average Social Security Benefits check?

The Social Security Administration states that retired workers receive $1,907 monthly. This information is accurate as of June 2024.

How do I figure out how much retirement income I need?

To estimate your retirement income, start by identifying your expected expenses. These may include housing, food, healthcare, travel, taxes, and leisure activities. Then, subtract guaranteed income sources such as Social Security, pensions, or annuities. Aim to have enough retirement income to cover this amount. The general guideline is around 70-80% of your pre-retirement income. Ensure to consider inflation and unexpected expenses.

What is the best age to retire for a woman?

Women generally live longer than men. Their average longevity is into the mid-80s. Retiring between 65-70 may be financially prudent for them. This ensures sufficient retirement savings for their potentially longer lifespan. However, key factors include personal health, career satisfaction, and financial readiness.

What is the best age for a man to retire?

The average male lives shorter than females. Retiring at 65 balances this. This ensures maximum retirement benefits and enough savings for life expectancy. Personal health, financial situation, and career enjoyment are important factors, too.

How much money do you need to retire with $100,000 a year income?

To secure an annual retirement income of $100,000 by age 65 through annuities, you will need between $570,067 (if bought at age 40) and $1,355,932 (if bought at age 65) saved up.

How much money do you need to retire with $150,000 a year income?

You need to buy annuities to secure a $150,000 annual retirement income.
The amount you need to save up depends on your age.

How much money do you need to retire with $200,000 a year income?

To achieve a yearly retirement income of $200,000 by age 65, you must save a specific amount of money. If you start purchasing annuities at age 40, you should save at least $1,140,134. However, if you wait until age 65, you must save $2,711,864.

How much do you need to retire at 40?

The amount needed to retire at 40 varies widely based on individual circumstances, lifestyle preferences, and retirement goals. Factors such as desired retirement age, expected lifespan, anticipated expenses, healthcare costs, inflation, and investment returns play significant roles in determining the amount needed. Generally, experts recommend aiming for a retirement savings goal to generate enough income to cover expenses throughout retirement, often estimated at 70-90% of pre-retirement income.

Are IRA distributions taxable after age 70?

Yes, IRA distributions are generally taxable after age 70. Withdrawals from traditional IRAs are taxed as ordinary income, while Roth IRA distributions are tax-free if the account has been open for at least five years.

Shawn Plummer, CRPC

Chartered Retirement Planning Counselor

Shawn Plummer is a Chartered Retirement Planning Counselor, insurance agent, and annuity broker with over 14 years of first-hand experience with annuities and insurance. Since beginning his journey in 2009, he has been pivotal in selling and educating about annuities and insurance products. Still, he has also played an instrumental role in training financial advisors for a prestigious Fortune Global 500 insurance company, Allianz. His insights and expertise have made him a sought-after voice in the industry, leading to features in renowned publications such as Time Magazine, Bloomberg, Entrepreneur, Yahoo! Finance, MSN, SmartAsset, The Simple Dollar, U.S. News and World Report, Women’s Health Magazine, and many more. Shawn’s driving ambition? To simplify retirement planning, he ensures his clients understand their choices and secure the best insurance coverage at unbeatable rates.

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

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