Retirement savings calculator can be defined as a device that helps in projecting the exact amount which you as an investor will save. Additionally, it also helps you determine the time that you would need for saving your amount so that you can utilize it post retirement. There are certain retirement calculators that take into consideration a consistent rate of return. It can be termed as a best suited tool that helps in safe investments.
On the other hand, you will find some other retirement calculators that help you determine whether a specific plan of investing and saving for retirement will outlive the retiree’s expenses or not.
Retirement savings calculator takes into consideration multiple factors when it comes to calculating the amount which a person needs to save. These include-
Retirement savings calculator takes into consideration a number of factors like-
- his/her planned retirement age
- present age of the individual
- present retirement savings
- life expectancy
- average investment return
- monthly/ annual retirement saving
- inflation rate
- social security
- Other income sources during retirement
Some of the benefits that you can reap by opting for retirement savings calculator include-
- You can project your estimated savings as well as amount needed for attaining your retirement goals.
- Retirement calculators provide different interactive features that further help you create a comprehensive and analytical approach so as to determine personal retirement requirements.
- A retirement calculator helps you with a proportionate view of the long term investing and saving requirements required for providing for a comfortable retirement.
- It is more than a calculator. It offers a graphical representation of results and analysis.
But then, everything has its set of pros and cons and retirement savings are no exception. Some of the limitations that comes with this kind of calculator include-
- The results obtained from them are based on mere assumption, hence, it needs to be used only as a kind of guidance and not treated as an expert advice.
- Retirement calculators fail to cover Social Security properly
However, the pros certainly outweighs the cons, hence you can count on a reliable retirement calculator so as to make the overall process hassle free.