Curious about Retirement calculator
What factors does a retirement calculator consider in its calculation?
A retirement calculator considers various factors to estimate the amount of money you will need in retirement and the amount you need to save each month to reach your retirement goals. Some of the factors a retirement calculator considers include:
Current age: The retirement calculator starts with your current age as it plays a crucial role in determining your retirement savings goals.
Retirement age: The retirement calculator determines your retirement savings goals based on the age you plan to retire.
Life expectancy: A retirement calculator also considers your expected lifespan as it affects how long you will need to sustain yourself in retirement.
Current savings: The calculator considers the current amount of money you have saved towards your retirement.
Income: The calculator takes into account your current income to determine how much you can afford to save towards retirement.
Monthly expenses: The calculator considers your current monthly expenses to determine the amount of money you will need in retirement.
Inflation rate: The calculator takes into account the expected inflation rate to adjust the future value of money.
Investment returns: The calculator considers the average expected rate of return on investments to estimate the growth of your retirement savings.
Social Security benefits: The calculator may consider your estimated Social Security benefits to determine your overall retirement income.
By inputting these factors, a retirement calculator can estimate your future retirement savings and help you plan accordingly.