Using a Retirement Savings Calculator


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Using a Retirement Savings Calculator

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  2. 2. Using a Retirement Savings Calculator Using a retirement savings calculator is easy and an effective means to see if the amount of money being saved each year is going to be enough to cover the standard of living desired by the individual or couple by the time they reach retirement age. Retirement income calculators can be found all over financial institution websites as well as investing sites so that the individual can use it for free.
  3. 3. These retirement savings calculators These retirement savings calculators are a great first step to determine if individual are on the right track or if they need to be more aggressive in their retirement savings plans. Financial advisors are able to take the information that is used in the retirement savings calculators and further expand on it to advise individuals what direction to take according to their specific goals and plans.
  4. 4. Information Retirement savings calculators always begin with basic information about the individual or couple who is doing retirement planning. The current age of the individual or couple and their current income is the first piece of information needed. In addition, the percentage of the raise the individuals get is also important to factor into the savings plan.
  5. 5. The goals of the individual or couple The goals of the individual or couple as far as how much income he or they want to have by retirement age is an important consideration since social security does not supply much more than basic necessities, and sometimes not even that, depending on the amount the individual has contributed to the system through the years.
  6. 6. After the general information has bee After the general information has been obtained, the individual must input how much he is currently putting into a 401K or other retirement plan each year (usually entered as a percentage of total yearly income.) It will also ask how much money the individual has already contributed to the plan so that the income by retirement can be determined.
  7. 7. In addition In addition, it asks how much the employer contributes to the plan, such as if they match the contributions or if it is less than that. The final information required on most retirement savings calculators is if there are any other types of savings plans that have been started for retirement, such as IRAs, CDs or savings accounts.
  8. 8. Once all the informationhas been gat Once all the information has been gathered, the retirement savings calculator compiles the information, includes the amount of social security income the person will receive, and gives the person the results which tell whether they have met their goals, or if they need to find a more aggressive way to save for retirement.
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