This is a simple retirement calculator that will allow you to plan your personal finances after retirement, with inflation taken into consideration. This retirement calculator gauges your annual balance with and without an inflation adjustment. It also computes the amount you can retrieve monthly after your retirement. However, retirement planning is a very complex issue that is influenced by many factors, such as your tax rate, your unpaid loans, your dependents, your 401K savings plan, your Social Security, and so forth. Because each retirement plan varies by individual, the Retirement Calculator does not consider these factors.
Retirement occurs when people end employment completely. Some people may "semi-retire" by decreasing their work hours. The retirement age varies for different countries, but it is generally between the ages of 55 and 70. Also, the age is different for males and females in some countries. Most people choose to retire when they are ready, but some are forced to retire due to various reasons, mostly due to illness or disability.
One of the most important factors that affect the decision to retire is whether a person is financially "ready" to retire. For example, wealthy people tend to retire earlier. In the United States, more than 60% of workers believe that they will need to save at least $500,000 before they can retire. In most situations, people financially rely on the following programs after retirement:
Social Security—this is a social insurance program run by the government to provide protection against poverty, old age, disability, etc. In the United States, approximately one-third of the working population expect Social Security to be their major source of income after retirement. Conversely, more than 50% of retirees expect Social Security to be their major source of income.
Pension—most public servants in the United States are not covered by Social Security, but by pension programs. Some private employers also provide pension benefits.
Retirement Savings Plans—this normally refers to 401Ks and IRAs (Individual Retirement Accounts) in the United States. These are the savings from personal income, including tax benefits. Many employers also provide a 401K "match" on top of an employee's personal contribution.
Investment Income—this is income such as stock dividends, real estate rental income, bank savings account interest, and so on.
Personal Savings—this is the money you save in your bank, such as saving accounts, CDs (Certificates of Deposit), checking accounts, etc.
To financially plan your retirement, please use this calculator to estimate each source of income listed above and add them up. Also, when planning for retirement, be sure to consider inflation. The average inflation rate in the United States for the past 30 years has been around 4.3%. Please check the Inflation Calculator for more information.