Retirement Calculator

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					Adviser Assistant Retirement Planning Calculator
Retirement Planning: What's your number?

Do you know how much money you need to save-up for retirement?

A dollar today is worth more than a dollar tomorrow. The first section of the Retirement Planning
Calculator allows you to visualize the value of the money you earn today in tomorrow's dollars. The
importance of this illustration is to understand the effects of inflation on your hard earned income.

A well known example of inflation is the constant rising costs of goods and services we consume on a
day to day basis. For example, a cup of coffee could cost you $1.68 from a local coffee shop. Assuming
inflation is at 3% per year, in 24 years you could expect to pay about twice as much to get the same
cup of coffee. Looked at another way that means that the purchasing power of each dollar you earn
today will have been cut in half! This becomes a major concern when you are saving for your
retirement years.

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Adviser Assistant Retirement Planning Calculator

The first section of the Retirement Planning Calculator calculates the value of your income today in
terms of its purchasing power in the year you plan to retire, assuming a 3% inflation rate:
           Household Income (Today's Dollars):                                   $                -
           Current Age:
           Desired Age of Retirement:
           Purchasing power of your income prior to retirement:                  $                -
Depending on the number of years you have until retirement, inflation can appear intimidating.
However, most people are fortunate to have their salaries/ wages increase over the years, (some
more than others). The figure presented above was only to show how inflation may affect a person’s
buying power.
The second part of the Retirement Planning Calculator shows how much you would be earning prior
to retirement if your income were to grow at 3% per annum, that is, if you could just keep-up with the
assumed inflation rate. (As well it illustrates how much more your lifestyle could cost when you
           Household income prior to retirement (tomorrow’s dollars):            $                -
Therefore, it is important to know what you need saved up for each year of retirement to maintain
your current standard of living.

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Adviser Assistant Retirement Planning Calculator
Given that your household income will be the amount directly above, we will now calculate, based on
an assumed rate of return of 3%, your retirement savings needs – in other words, how much should
your total long-term savings be at retirement?
           Household income prior to retirement (tomorrow's dollars):          $                -
           What % of your household income do you expect to spend at
           Age of Retirement:                                                                        -
           Expected Age of Death:
           Total Retirement Savings Required:                                  $                -
The ‘Total Retirement Savings Required’ is a good benchmark to help you plan your long-term savings.
And since a dollar today is worth more than a dollar tomorrow, the sooner you start saving for your
future, the better the chances you have of accumulating this number.

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Adviser Assistant Retirement Planning Calculator
Retirement Planning: Where are you today?
Now knowing your number, where are you today? Do you know?

A quick assessment of your current financial situation could inform you if you need to make changes
to your current savings plan, or to reassure you that your current financial plan is adequate.
If you find that your current long-term savings financial plan will not cover your retirement needs; you
   1. Plan to live on less – decrease your lifestyle spending expectations at retirement.
   2. Earn more – increase your investment returns. However, this means increasing your overall risk
   tolerance (i.e. higher investment risk = higher potential investment returns). If you choose this
   3. Save more – increase your investment contributions today.
           Age of Retirement:                                                                           -
           Current Age:                                                                                 -
           Current Long-Term Savings:                                             $                 -
           Planned Annual Savings:                                                $                 -
           Rate of Return on Your Investment (Average):
           Total Projected Long-term Savings:                                     $                 -
           Retirement Savings Met for Retirement:                                 $                 -


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Description: Adviser Assistant Retirement Calculator illustrates the effects of inflation on income as well calculates the amount of savings an individual needs to retire vs. the projected future value of an individuals long term savings.
Rafael Reis Rafael Reis Director
About Rafael Reis, Director of Operations of Reis Financial Solutions Inc brings his numerous years of money management and management accounting experience towards the creation of his professional spreadsheets and templates. In his personal life he loves to travel, and compete in extreme sports as well as train in amateur boxing.