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Retirement calculator: How much you need to retire


July 30, 2022
Author: growth-fast
Tag: personal finance

What is a pension calculator?

A retirement calculator is a a tool to help you find out how much money you need in retirement. The retirement calculator takes into account your age, income, desired retirement age, your current savings, monthly savings, your marital status, your retirement plans (eg, 401(k), 403(b), Roth IRA, Traditional IRA), your Social security and pension benefits.

Everyone would like to live comfortably in retirement. Therefore, having a retirement plan very important because you need to know how much you need to plan it. It’s never too early to start saving for retirement. In fact, the sooner you start, the better.

Need help planning your retirement? Find a financial advisor serving your region with SmartAsset’s free online matching tool.

Understanding the pension calculator

The retirement calculator calculates how much savings you’ll need in retirement and how much you’ll have to live comfortably. Alyes, a The retirement income calculator takes into account the number of years in retirement and assumes you’ll live to 20-odd years or so. The retirement calculator also takes into account the tax rate by state.

It will then tell you how much money will be provided by Social Security and any employer-provided pension. Based on your lifestyle you’ve specified, the retirement calculator will recommend how much retirement income you’ll need.

Best Retirement Calculators Online

The retirement calculator is a great tool to find out if you’re saving enough for retirement. However, a simple Google search for pension calculators will return thousands. So it can be difficult to know which ones are really the best. The best retirement calculators include, but are not limited to:

  • SmartAsset Retirement Calculator;
  • Vanguard Retirement Income Calculator
  • Personal Capital Retirement Planner

SmartAsset Retirement Calculator

The SmartAsset Retirement Calculator makes it easy to just enter some basic information and get your pension questions answered. This gives you an estimate of how much you will need for retirement. The pension calculator will ask you a series of questions.

First, the SmartAsset Retirement Calculator will ask you where you live. This information is important because they need to figure out what taxes you will pay in retirement.

When you enter your city and state, the next question is your annual income. Again, they need to know your annual income to calculate your tax and retirement needs. The third question the calculator will ask you is the age at which you choose to receive Social Security benefits. They will use this information to calculate your Social Security income in retirement.

After entering this information, the next question is how much you save per month. They use this piece of information to optimally allocate your contribution between different retirement accounts.

The next question this retirement calculator will ask you is to estimate your annual retirement expenses. The SmartAsset Retirement Calculator will use this to work out how much income you’ll need from your retirement savings.

Another question will be about your year of birth. This is used to calculate the number of years you have to save and your Social Security benefits. You will be prompted to add, and your 401(k), 403(b), or 457(b) account information, if you have one. So you’ll add the type of retirement accounts available to you and your current balances.

If you have an IRA, you’ll also need to add your IRA account details and current balances. If you have a pension, enter the information including type and quantity.

You will need to add your own the balance of cash savings and investments. Note that this does not include your retirement accounts (401k, IRA, pension).

Once you enter all of this information, the SmartAsset Retirement Calculator will tell you exactly whether you have “enough savings for a retirement lifestyle that covers your annual retirement expenses of $81,200we recommend saving the minimum $2,065 per month”. It will tell you if you retire at age 66, for example, that’s how much you’ll need in your retirement savings.

It also breaks down your annual after-tax income in retirement. It will tell you that your retirement accounts and Social Security will provide a certain amount of combined after-tax retirement income. Based on your chosen retirement lifestyle, the SmartAsset Retirement Calculator recommends an annual retirement income.

Key illustration:

Let’s say you make $125,000 a year. You would like to retire at age 65. You have a $32,000 balance in your 401k and contribute at least $1,200 a month. Below is a summary of the information you will receive from the SmartAsset Retirement Calculator:

How much money do you need to retire?


To maintain the lifestyle you want in retirement – ages 66 to 95, you’ll need $2,239,985 in total savings by age 66.
Estimated annual income needed for retirement

166,654 dollars

Your current savings plan, including Social Security benefits, would provide the equivalent of $146,056 a year in retirement income. We estimate that you will need $166,654 annually to maintain the lifestyle you want in retirement.
Estimated payments of social insurance
54,391 dollars
We estimate your Social Security benefit to be $54,391 a year between ages 66 and 95.
Tax rate
Tax rate
Your current marginal tax rate is 29% versus a projected retirement marginal tax rate of 22%. Since your tax rate today is higher than your tax rate in retirement, we recommend making your 401k or other tax-deferred accounts your primary savings vehicle. Illinois is a low tax jurisdiction for retirees, with an average tax burden on retirees of 0.6% compared to the national average of 1.9%.

Vanguard Retirement Income Calculator

Another simple but effective retirement calculator is this Vanguard Retirement Income Calculator. Using this calculator will help you see where you are in relation to your retirement goal and map out different ways to reach your goal.

Personal Capital Retirement Planner

The Personal Equity Retirement Calculator is another great tool that makes the list. With a financial dashboard, once you add all your investment accounts to it, this retirement calculator will gather all the data and run several scenarios automatically. It displays results with attractive graphs and tables.

In conclusion

A retirement calculator is a good tool for determining how much money you need to save to live comfortably. While there are several retirement calculators online, three great ones that are worth your time are the SmartAsset Retirement Calculator, the Vanguard Retirement Income Calculator, and the Retirement Wealth Planner.

After all, saving for retirement can be stressful if you don’t know how much you actually need to save. That’s why this free retirement income calculator is great and useful. The SmartAsset Retirement Calculator is a great tool for analyzing your options.

Take this quiz to see if you can retire comfortably

Preparing for retirement requires careful planning and consideration. with Free SmartAsset Quizyou can match with Trusted Financial Advisors that serve your area and can provide you with professional advice. Simply select your target retirement date to get started. Learn more about how working with a financial advisor can help you try to reach your financial goals and take the test now.

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