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retirement income calculators


									Calculating Retirement Income
Early retirement is becoming an "in" thing these days that a lot of people no matter what age brackets they belong to are not just very open in talking
about retiring early, but are actually doing it. All of a sudden, talk of retirement is not just for the elderly anymore since even the younger ones are
becoming interested in it.

A lot of people who have seriously thought of retirement are thinking specifically of how they can afford the standard of living of most people who
would want to enjoy life to the hilt. Take for example those who can afford to retire in a golf retirement community in Miami or in any of the plush
residential communities.

When and how you retire really depends on how you planned for your retirement several years before that actually happens. However, what
determines the quality of your retirement plan is how you calculate your retirement income and how you assess your capacity to live the lifestyle that
you want to live and enjoy in your retirement. Not a few people aim to enjoy retirement life in a modest way as this is the time when they can let
yourself enjoy the stuff they did not have the opportunity to enjoy when they were younger so most people would like to dream big and get a plan that
can make that dream a reality.

Planning and calculating your retirement income does not involve merely thinking about it. You have to decide when you would like to call it a day and
retire early. Can you afford an early retirement? Are you prepared to put in that extra labor now, so that you could retire early? A retirement income
calculator would tell you how much you need to earn now so that you could retire early and start to enjoy the life you always dreamt of.

The first essential part in getting the details you need is to determine the payout period which is actually the length of time which you require your
retirement funds to last for. You have to estimate your probably life expectancy and the IRS provides a wonderful tool for doing so but you might want
to tack on an extra decade or so in order to arrive at the payout period.

After you have calculated your payout period, you next job is to assess the rate at which you are likely to withdraw funds. Take the inflation into
consideration when you do this calculation. You would also like to assess the various investment risks that you would have to take for the fund to
remain healthy and viable.

Retirement income is usually calculated on an annual basis taking into account your early requirements for funds. Take your annual expected
expenditure and then add a further 5 to 8% to keep a comfortable buffer, for living well year after year. Taking into consideration the historical inflation
data, it would be wise to take the inflation trend to be around 5% per annum.

There are a lot of online retirement income calculators which can be located if you do a bit of research on the net. You might find the answers very
simple or very complicated. However they provide answers to the most frequently asked questions people have about post retirement income. These
tools essentially help you realize a long-cherished dream - of retiring peacefully, without having to worry about money ever.

About the Author
Raymond Cheung is a contributing researcher for Retirement Planning Software and is an authority on subjects involving how to calculate retirement


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