This article highlights three free sources for retirement planning tools. The following three sources can help you better estimate the level of monthly savings necessary to make it to retirement, as well as help you predict how your retirement savings accounts are stacking up. A report will be generated automatically after entering your current schd vs voo age, expected age at retirement, expected life expectancy, current savings, social security and retirement income. At the top of the screen, you can change your scenario to reflect different hypothetical retirement plans or investment approaches. For example, you may choose to run your model under a conservative or aggressive scenario.
Vanguard Retirement Income CalculatorVisual representation of predicted monthly income in retirement compared to projected monthly needs. The Retirement Solution Retirement Nest Egg Calculator is one of the most simple you’ll come across. You need to enter your current age, retirement age, current retirement savings, the monthly amount invested, and the annual interest rate. Hit enter, and you’ll be greeted with the total amount available at retirement, the number of contributions, the total amount invested, interest earned, and your last deposit date.
Next, scroll over to the “Pie Graphs” section for a detailed breakdown of your expected balances, savings, capital gains, income and expenses once you hit your retirement age. If you know you won’t have a mortgage, for instance, maybe you plan to replace only 60%. If you want to travel every year, you might aim to replace 100% or even 110% of pre-retirement income.
This is difficult for most people to assess without professional help. Even if your plan is on the right track, it gives recommendations to maximize your plan, such as buying a second home, spending more in retirement, etc. The education feature does lack guidance during the entry process. TheAARP Retirement Income Calculator estimates how much you’re projected to have by a target retirement date and estimates the minimum amount you’ll likely need.
All savings must be input together; you must designate them all as either taxable or tax-deferred. You can’t designate if you have both types of accounts and how much of each you have. You can input your projected rate of return ranging from 1% – 20%. It doesn’t seem prudent to allow someone to project a rate of return up to 20%, which is much higher than any reasonable historical rate of return. You designate what your tax rate will be now and in retirement.