Retirement Calculator: Estimate How Much You Need To Retire By Age

Shawn Plummer, CRPC

Chartered Retirement Planning Counselor

How Much Do I Need to Retire?

To estimate how much you need to retire, there are certain factors you should consider. Think about the age you want to retire, your current age, and how long you expect to live. Next, take into account your current savings and your monthly expenses. Lastly, don’t forget to consider the expected rate of return on your investments. Experts suggest 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.

How Much Do I Need To Retire?

How To Guarantee Your Lifetime Retirement Savings

You can purchase a guaranteed lifetime withdrawal benefit on an annuity using your retirement savings. This will contractually guarantee income for the rest of your life.

Factors Influencing Retirement Savings

  1. Retirement Age: The age 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.

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.
Realistic Retirement Calculator To Calculator Savings

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 most likely only going up 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.

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 Age?

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

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

How Much And When To Retire Considerations

Consider the following factors when calculating how much to save for retirement. Also, think about when to 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 financial advisor provides personalized guidance for individuals. Annuities optimize each of these factors.

Helpful Tool: Retirement income calculator

Next Steps After Using Our Retirement Calculator

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. Our retirement calculator is simple. It helps you plan for a comfortable retirement. If you want extra Security in your golden years, consider investing. A guaranteed return plan can provide the security you desire. 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 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 $1,837.29 monthly. This information is accurate as of June 2023.

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 to retire for a man?

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 will need to 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.

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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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