Retirement Funding Calculator        
This calculator is designed to determine the amount of money needed for retirement. It determines the amount in today's dollars, retirement age dollars and determines the annual funding required to meet the retirement goal. The first section is for inputs; the section below provides the outputs.  
Age today          
Retirement age    
The retirement age must be greater than or equal to the age today.
Life expectancy (age you will live to)  
The life expectancy must be greater than the retirement age.
Income today        
Percentage of income needed during retirement (wage replacement ratio)
Note: The WRR is often 70% to 80%. However, it may be greater than or less than this range. In some cases, it may exceed 100%.
        Year Months  
Social Security full retirement age–FRA (max is age 67)  
Annual Social Security benefits at FRA in today's dollars    
Age to begin taking Social Security benefits – between 62 and 70
Note: Social Security benefits are reduced if taken prior to full retirement age. Delaying retirement will increase Social Security benefits.
Annual pension payment (today's dollars)*  
The pension amount is in today's dollars. It is assumed that this value will increase at the rate of inflation until the pension begins. The COLA will dictate whether it increases from one year to another during retirement.
Age pension payments begin (cannot be before Age today)    
Age pension payments stop (cannot exceed life expectancy)    
Pension payment COLA during retirement        
* Pension payment increases at inflation rate until it begins        
How much do you currently have saved today for retirement?  
How much do you want to leave for heirs (future dollars) at death?  
How much do you expect to receive as an inheritance?    
At what age will you receive the inheritance?    
Amount of extravagant one-time purchase (future dollars)?  
This might be a fancy car, beach house, or trip around the world.
At what age will you purchase extravagant item?    
Annual savings will increase at what rate each year?  
This input will increase the amount saved on an annual basis. As a result, lower savings will occur at a younger age and higher savings will occur at an older age.
        Pre Retirement During Retirement  
Earnings rate for assets before retirement and during retirement.
The earnings rate should generally not exceed 10% to 12% based on historical returns. A return of 7% or 8% is probably more reasonable. However, the actual number will depend on asset allocation, as well as other factors.
Inflation rate for expenses before retirement and during retirement.  
OUTPUT       Today's Dollars  
The amount of money needed for retirement    
The amount of money to be left to heirs      
The amount of money for a one-time extravagant purchase    
The total amount of money needed for goals    
Less funding provided by Social Security      
Less funding provided by pension      
Less funding provided by inheritance      
Less amount of funds currently set aside for retirement    
Total sources of funds        
Funding of Needs:  Ordinary Annuity          
Annual funding at end of each year - no increase in savings each year    
Required savings at the end of the first year      
Required savings at the end of the second year