This Retirement Calculator Will Tell You How Much to Save Each Month to Reach Your Goal.
Savings for retirement seem overwhelming, and to a large extent it’s just a lot of money . For example, if you’re 40, you should be saving twice your annual salary . If you start late, it may seem impossible. Like all goals, it helps you start small , and the new NerdWallet retirement benefit calculator helps you with that.
The calculator works just like the other retirement calculators we’ve reviewed , but it gives you an idea of how much you need to save on a monthly basis, making your goal a little more attainable. You enter some details about your situation: age, desired retirement age, current income, etc., and the tool tells you what your savings goal should be. From there, you can set up filters to see how much you need to save each month to stay on track.
NerdWallet makes some general assumptions with this tool. For example, they ask for your pre-tax income, because typically, you need 70 to 80 percent of your current retirement income. However, they indicate that your actual retirement expenses may differ, and the calculator allows you to adjust for this:
Remember to adjust the numbers to suit your retirement plans. For example, if you know that you will not have a mortgage, you can only plan to replace 60%. If you want to travel every year, you can try to recoup 100% or even 110% of your pre-retirement savings.
If you plan to receive Social Security benefits, you can expect to replace 70% of your pre-retirement income. Use this calculator to estimate how much you can expect to receive from Social Security.
Check out the calculator yourself using the link below. They also go a little deeper into their methodology.
Retirement Calculator | How much do you need to retire? | NerdWallet