Retirement Calculator: Estimate Savings And Income

Shawn Plummer

CEO, The Annuity Expert

How much money do you need to retire? This is a question that many people are asking as they near retirement age. It can be difficult to estimate because there are so many factors involved. This guide will discuss calculating how much money you will need for retirement. We will also provide a projected retirement calculator that you can use to help you get started!

Retirement Savings Calculator

When it comes to saving for retirement, there are a lot of factors to consider. One of the most important is how much you’ll need to contribute each month to your tax-deferred savings account. This can be a 401(k) through your employer or a traditional IRA or Roth IRA that you set up on your own. The amount you’ll need to save will depend on several factors, including your age, income, and account type. However, speaking with an advisor (like The Annuity Expert) is the best way to determine how much you need to save. We can help you establish an investment strategy that fits your unique needs and goals, and remember, investing involves risk!

Retirement Income Calculator

To efficiently withdraw from your tax-deferred retirement accounts (401(k), Traditional and Roth IRAs), one must use an annuity. Why? Because annuities are the only retirement plans that guarantee to provide a fixed paycheck for the rest of a person’s lifetime, even after the account has run out of money.

To use this realistic retirement calculator, enter your current age, resident state, savings amount, and target retirement age. 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.

Retirement Withdrawal Comparison

Annuities automate the withdrawal process for your retirement income. The table below compares using an annuity to distribute your income by systematically withdrawing from retirement plans yourself 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%
TaxationTaxable/Tax-FreeTaxableTaxableTax-Free
Death BenefitAccount BalanceAccount BalanceAccount BalanceAccount Balance

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

What Is Retirement?

Retirement is a time when people can enjoy the fruits of their labor. After years of working hard, many people look forward to retirement as a time to relax and pursue hobbies and interests that they have put on the back burner. For some, retirement may mean traveling, taking up new hobbies, or spending more time with family and friends. Others may choose to volunteer or continue working part-time. Regardless of how people choose to spend their retirement, it is typically a time of increased leisure and relaxation.

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

How Much Do I Need To Retire?

When it comes to retirement, there’s no one-size-fits-all answer. Instead, the retirement savings you’ll need will depend on various factors, including your lifestyle, health, and how long you expect to live. However, there are some general guidelines you can follow to help you estimate how much money you’ll need to retire comfortably.

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

Additionally, your costs may decrease in retirement if you pay off a mortgage or other debts. Once you have a good idea of your estimated income and annual retirement expenses, you can start working on a retirement savings plan to ensure you have enough money to enjoy your golden years.

How Do I Calculate My Retirement Income?

Regarding retirement planning, one of the most critical questions is, “how much will I need to save?” Of course, the answer depends on several factors, including your desired lifestyle in retirement and how long you expect to live. However, a few helpful retirement calculators can give you a general idea of how much you’ll need to save.

One popular retirement calculator is the annuity calculator. An annuity is an insurance-based retirement account that provides guaranteed income for the rest of your life, typically at retirement age. The annuity retirement calculator considers factors such as your age, expected retirement date, and current retirement savings to estimate how much you’ll need to save to purchase an annuity that will provide sufficient income in retirement.

Of course, there are other factors to consider besides a simple retirement calculator when planning for retirement. However, this tool can be a useful starting point in estimating how much you’ll need to save for a comfortable retirement.

Starting Early

For many people, retirement seems like a far-off goal. However, the earlier you start saving, the more likely you will achieve your retirement goals. One way to start saving early is to use our free retirement calculator. This tool can help you estimate how much money you will need to save to maintain your current lifestyle in retirement.

Additionally, an annuity can be a great way to ensure you have a steady income in retirement. Annuities typically offer higher income rates of return than other investment vehicles, making them an attractive option for retirement savers. By starting early and taking advantage of retirement tools, you can set yourself up for a comfortable retirement.

How Do I Save For Retirement?

One of the most important financial decisions you will make is how to save for retirement. There are several factors to consider, such as when you want to retire and how much annual 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 for retirement 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 retirement 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 choose to save for retirement, 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 more efficient.

  • First, set a target retirement age and ensure you contribute enough to reach your investment objectives. Include estimated Social Security Benefits (preferably at full retirement age). 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.

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 in their retirement planning, people can help make sure their retirement savings will last as long as they need them and maintain the value of today’s dollars.

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?

When it comes to financial security in retirement, the key is to make your retirement savings last. Social Security benefits and annuities can work together to provide a lifelong stream of income that can help prevent you from running out of money. Social Security retirement benefits are designed to replace a portion of your pre-retirement earnings, and annuities can provide additional income to help cover expenses.

Next Steps

The best way to ensure a comfortable retirement is to plan for it as soon as possible. There are many ways to save for retirement, and each person’s needs will differ. Our retirement calculator can help you understand how much money you’ll need to retire comfortably. And if you want some extra security in your golden years, consider investing in a guaranteed return plan.

We can help you find the perfect retirement plan for your needs and budget.

Contact us today for more information about our services – we would be happy to help!

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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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