Description: The article below is mainly about retirement calculator, which indicates us some useful steps and other ways to improve your retirement situation. The retirement calculator allows you to assess where you are in your retirement planning.
The retirement calculator allows you to assess where you are in your retirement planning and what changes you need to make to improve your retirement situation. The spreadsheet works as follows. The blue cells are where you need to put some inputs.
We have provided some for you but you can change these. The results in summary form are shown here in more detail by year on this side. Let’s try a scenario. The first thing we would do is to put in the numbers that we know with a fair amount of certainty such as an annual income.
We might put a hundred thousand, we presumably know the total savings to date, so we’re going to put four hundred thousand, the current age is 40, let’s draw 50 in age of retirement, lastly we’re going to put what percentage of our income, let’s try ten percent, we are going to save it.
You’ll notice inflation in your country and the return over inflation, we’ve put a number in but you should get professional help to guide you on what those numbers should be, for anticipated age of death we’ve put in a hundred as an upper limit.
For the percentage of annual income required in retirement, we’ve used eighty percent, the results down here don’t paint a great picture, the moment it’s telling us that we can only retire, if we retired 50, we can only afford to retire Chloe 66.
We should have had 2.4 million at retirement date, but we only had one point three, so you can use the calculator to see how you can improve the situation, the first thing you might want to do is to see how much you have to increase savings bar.
Let’s raise up savings to maybe twenty percent, although it has an impact, it’s still not what we need to try thirty percent, but we’re starting to go into areas where it’s unfeasible, even that doesn’t work, I go back to ten percent, later let’s try it.
When we have 55, you’ll notice that it makes a massive difference, when we 60, you’ll see suddenly that we can retire too much older, that’s how much we required that, that’s how much we had to show you how it looks on the side.
This gives you a detailed breakdown of the savings from your age until you retire, this shows you how you’re going to use up your savings and how your savings will lost, in this case if you are past your planned retirement age, you can play with these, perhaps you don’t want to retire at 60.
You may retire at 55, you haven’t met our criteria, maybe you should save more, let’s try fifteen percent, let’s try 58, you can do that, you can get specific number or play with goal seek, you’ll see the ideal situation for us.