Here's a Basic Retirement Calculator

What's required in a basic retirement calculator? I found that crucial and significant parameters are often ignored.

The parameters required for a basic retirement pension calculator are:

  • What's your current annual income?
  • How many years until retirement?
  • How much have you saved to date in retirement accounts?
  • How much do you intend to save for the remainder of your active working life?
  • What's your spending pattern? Are you prepared to tone your lifestyle down when retired?
  • Based on family and health history, what's your life expectancy?


But then it should also take into account the possible future liquidation of some of your assets. It needs to adjust for inflation and the ever present greed of the tax man.

In my opinion a pretty good basic retirement savings calculator is offered by Kiplinger. When you click on the hyperlink the calculator opens in a new window.

It starts by looking at your current gross income, the number of years until your retirement, and the percentage of current income you would expect during retirement.

Next it factors in the Retirement income you will receive from Pensions and Social Security.

It then takes note of the savings you have already accumulated and how much equity you would be able to free up by selling your house if you wish to do so.

It ends by getting your opinion on your expected years of retirement, your risk tolerance, and any additional assets expected at retirement.

When you click on 'Calculate', go to the top of the page to see your results.

On the last line of the 'Results' section you'll get the estimate on how much you should save monthly towards your retirement savings account.

Play around with this basic retirement calculator, but be sure to move on to a real retirement income planner. Do not rely on the results from this calculator to make financial decisions.

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