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Retirement Calculator

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					Retirement is the point where a person stops employment completely.
Today, retirement with a pension is considered a right of the worker in
many societies, and hard ideological, social, cultural and political
battles have been fought over whether this is a right. The retirement age
varies from country to country but it is generally between 55 and 70. In
some countries this age is different for males and females. There are
many factors affecting to a person for taking decision towards
retirement. Some of these are like social security, financial incentives,
wealth and spouse's employment status. Retired workers then support
themselves either through pensions or savings. In most cases the money is
provided by the government, but sometimes granted only by private
subscriptions to mutual funds. The financial weight of provision of
pensions on a government's budget is often heavy and is the reason for
political debates about the retirement age. The state might be interested
in a later retirement age for economic reasons. The cost of health care
in retirement is large, because people tend to be ill more frequently in
later life. On a personal level, the rising cost of living during
retirement is a serious concern to many older adults. Retirement
calculator helps you to estimate how well your savings program is
preparing you for retirement. A useful and straightforward calculation
can be done if we assume that interest, after expenses, taxes and
inflation is zero. Assume that in real (after-inflation) terms, your
salary never changes during your w years of working life. During your p
years of pension, you have a living standard which costs a replacement
ratio R times as much as your living standard in your working life. Your
working life living standard is your salary less the proportion of salary
Z that you need to save. Calculations are per unit salary, e.g. assume
salary =1. Then after w years' work, retirement age accumulated savings=
wZ. To pay for pension for p years, necessary savings at retirement=Rp(1-
Z) Equate these: wZ=Rp(1-Z) and solve to give z= Rp/ (w + Rp). For
example, if w=35, p=30 and R=0.65 we find that we need to save a
proportion z=35.78% of our salary. Retirement calculators generally
accumulate a proportion of salary up to retirement age, as illustrated in
the clickable 'nut accumulation' example on the left. This shows a
straightforward case which nonetheless could be practically useful for
optimistic people hoping to work for only as long as they are likely to
be retired: more information about this is at retirement. For more
complicated situations, there are several online retirement calculators
on the Internet. Many retirement calculators project how much an investor
needs to save, and for how long, to provide a certain level of retirement
expenditures. Some retirement calculators, appropriate for safe
investments, assume a constant, unvarying rate of return. Monte Carlo
retirement calculators take volatility into account, and project the
probability that a particular plan of retirement savings, investments and
expenditures will outlast the retiree. Retirement calculators vary in the
extent to which they take taxes, social security, pensions, and other
sources of retirement income and expenditures into account.       The
assumptions keyed into a retirement calculator are critical. One of the
most important assumptions is the assumed rate of real (after inflation)
investment return. For more information on Retirement Calculator you
can visit our website
http://insuremegenie.com/Calculator/Calci_Retirement.aspx
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posted:11/19/2011
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