Save for Retirement Calculator
Saving for retirement? Calculate the amount of retirement savings you will need.
How to Use the Retirement Savings Calculator
Our retirement savings calculator is designed to help you estimate how much you need to save to achieve your retirement goals.
To get the most accurate results, you will need to provide specific information about your current financial situation and retirement plans, including:
- Current Age - Enter your current age in years. This helps the calculator determine how many years you have left until retirement. The more years you have to save, the more your investments can grow through compound interest.
- Retirement Age - Specify the age at which you plan to retire. This input, combined with your current age, helps the calculator estimate the number of years you will be saving and investing before you start withdrawing from your retirement accounts.
- Annual Household Income - Provide your current annual household income. This amount is used to estimate your current standard of living and helps the calculator determine how much you might need income in retirement to maintain a similar lifestyle.
- Needed Retirement Income - Estimate the annual income you will need in retirement. A common rule of thumb is to aim for 70-80% of your pre-retirement income, but you can adjust this percentage based on your expected retirement lifestyle and expenses.
- Current Retirement Assets - Input the total value of your current retirement savings and investments. This includes all retirement accounts, such as 401(k)s, IRAs, and any other savings designated for retirement. This allows us to assess your starting point for future savings growth.
- Monthly Savings - Enter the amount you currently contribute for retirement each month. Consistent monthly contributions are crucial for building a substantial retirement fund.
- Monthly Pension - If you expect to receive a monthly pension during retirement, input the estimated amount here. Pensions provide a steady income stream and can reduce the amount you need to save independently.
- Monthly Social Security - Estimate the monthly Social Security benefits you anticipate receiving. You can obtain an estimate of your benefits from the Social Security Administration’s website if you are unsure.
Common Questions
Ideally, you should save as much as you are able. Most financial advisors recommend saving a minimum of 15% of your gross income for retirement. However, it also depends on a few factors: how much income you earn, when you plan on retiring, what kind of retirement fund you'll contribute to, etc. UMCU has a variety of retirement calculators to help you!
It depends! Do you have a personal savings account in addition to your retirement account? Do you plan on taking an early retirement or working as long as possible? Check out our calculator to get an idea of how long your retirement planning accounts will last into your golden years.
In most cases, it's advisable to utilize an employer matching 401(k) program. Our 401(k) calculator will help you see how much you can grow your retirement account based on a few factors:
- Your annual salary
- Your annual salary increase
- Your contribution
- Your employer's contribution
- Your current age
- The age you plan to retire
There are pros and cons to each! Like with all things retirement related, there is no concrete answer. There are different qualifications for a traditional 401(k) vs a Roth 401(k), how each account is taxed, withdrawal requirements, and more.
Click here to use our traditional vs Roth 401(k) calculator.
While there are many similarities between the two retirement accounts, the biggest difference is that a 401(k) is offered by your employer while IRAs are something you open on your own. Like with traditional vs Roth 401(k)s, IRAs also have traditional and Roth accounts.
You'll need to consider several factors like your cumulative savings, how many years you will be in retirement, your tax rate, etc.
To get a rough idea of your retirement income, click here to enter your info into our retirement income calculator.
- 401(k) Plans: 401(k) plans are offered by many employers and allow you to contribute pre-tax income that your employer will often match. The funds grow tax-deferred until withdrawal.
- Roth 401(k): Contributions are made with after-tax dollars, but withdrawals during retirement are tax-free. Roth 401(k)s are beneficial if you expect to be in a higher tax bracket once you reach retirement.
- Traditional IRA: Contributions are often tax-deductible and your investments grow tax-deferred until you withdrawal. Traditional IRAs are a good option if you don’t have access to a 401(k).
- Roth IRA: Contributions are made with after-tax income, but withdrawals are tax-free. Please note that there are income limits for contributions, but it offers tax-free growth and withdrawals.
- Health Savings Account (HSA): If you have a high-deductible health plan, an HSA can be a dynamic retirement savings tool. Contributions are tax-deductible, grow tax-free, and withdrawals for medical expenses are also tax-free.
- Simplified Employee Pension (SEP) IRA: SEP IRAs are a great choice for self-employed individuals and small business owners. Plus, they allow for higher contribution limits compared to traditional IRAs.
- 403(b) Plans: A 403(b) plan is a retirement plan offered by public schools and certain 501(c)(3) tax-exempt organizations for their employees. It's similar to a 401(k) plan maintained by a for-profit entity. Employees defer some of their salary into individual accounts, and the funds are generally not subject to federal or state income tax until it's distributed.