Find Out How Much You Need to Save for Retirement
Free Retirement Calculator
Our free, online "Retirement Calculator" is perfect for finding out how much you need to save in order to reach your retirement goals. Just enter your information in the boxes below. Please do not include commas or dollar signs. When you click "Calculate," the amount you need to save each year will appear below. Calculators are provided for consumer use. Accuracy is dependent on user input. Mission Valley Bank is not responsible for user results nor does the bank guarantee accuracy. Help with terms used on the calculator.
Click the "CALCULATE" button to view your results.
Retirement Calculator Help
What is your current age, rounded up to the next whole year?
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How much money do you currently have set aside for your retirement?
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What is your desired retirement age, rounded to the nearest whole year?
How much money will you need to cover living expenses for a full year once you have retired? Individual circumstances vary, but here are some general guidelines to help you:
- Minimum (50% to 60% of current gross income): This meets the government's minimum level of financial adequacy (defined as one-half of pre-retirement income).
- Basic (70% to 80% of current gross income): Will allow for the basics in retirement, particularly if you have employer-paid retiree health insurance. Plan for a retirement with limited money available for travel or luxury expenditures.
- Moderate (80% to 90% of current gross income): May be required if you will have to pay your own Medicare premiums and/or pay for insurance to cover costs above Medicare.
- Comfortable (90% to 120% of current gross income): This level may be needed if you would like a retirement lifestyle that is more comfortable than your current lifestyle.
What age do you expect to live to? Northwestern Mutual offers an excellent interactive calculator to help you assess longevity based on health, family history, and many other variables.
What is the average expected annual inflation rate over the entire period encompassing your remaining working years as well as your retirement years? Since 1913, statistics show an annual average inflation rate of 3.3%. Since 1972, the inflation rate has run at a 4.78% annual clip. A 2.5% to 5% inflation rate is a reasonable projection for the long-term future.
Rate of Return
What is the average annual long-term investment return you expect to earn on your retirement savings? The lower the expected rate, the more you'll need to save to meet retirement income goals. For stocks or mutual funds you should consult a prospectus. Please be aware that past performance is no guarantee of future performance.
What tax bracket are you in now and in what tax bracket do you expect to be once you retire?