Investing for retirement is an essential part of everyone’s financial plan. However, figuring out how much money you’ll need for retirement and how much you should be saving can be a daunting task. Luckily, investment calculators can ease this process by giving you a good estimate of how much you need to save and invest to comfortably retire. Here’s a roundup of the best investment calculators for retirement.
1. NerdWallet’s Retirement Calculator
NerdWallet’s retirement calculator is one of the most user-friendly and comprehensive calculators on the market. It allows you to customize many variables, including your age, retirement age, income, savings rate, and expected investment returns. The tool also allows you to include Social Security income and provides suggestions for how to reach your retirement goals.
2. Personal Capital Retirement Planner
Personal Capital’s Retirement Planner offers a robust tool that allows you to create, manage and forecast future retirement scenarios. This tool provides a detailed overview of your retirement plan and offers suggestions for how to improve it. The Retirement Planner tool also integrates with your existing Personal Capital account, which means it can incorporate actual spending and savings data into the calculations.
3. Vanguard Retirement Nest Egg Calculator
Vanguard’s Retirement Nest Egg Calculator is another excellent investment tool for those looking to plan for retirement. The calculator uses a Monte Carlo simulation to show potential outcomes based on a range of possible investment returns. Key features include the ability to adjust savings rate, retirement age, withdrawal rate, and the allocation between stocks and bonds.
4. Fidelity Retirement Score
Fidelity’s Retirement Score is a comprehensive tool that provides a score, similar to a credit score, that gauges your preparedness for retirement. This calculator not only estimates your savings need but also gives you actionable steps to improve your score and better your chances for a comfortable retirement.
5. Schwab Retirement Income Calculator
Schwab’s Retirement Income Calculator is a user-friendly tool that provides a detailed overview of how long your retirement savings will last. It also gives predictions on how variations in your retirement spending, investment returns, and other factors will affect the sustenance of your retirement savings.
6. Bankrate Retirement Calculator
The Bankrate Retirement Calculator helps you determine how well you have prepared and what you can do to improve your retirement outlook. This calculator considers your current age, desired retirement age, annual income, current savings, and expected income increases. This intuitive tool provides visual charts and clear information about your retirement prospects.
7. Investopedia Retirement Calculator
Investopedia’s Retirement Calculator uses a slider-based interface to adjust inputs and view the impacts on retirement savings. It provides a snapshot of your projected savings at retirement, based on your current savings rate, investment returns, retirement age, and other factors.
Investment calculators are valuable tools for planning your retirement, but they should not be the only resource you use. Each calculator has a unique set of features and may make different assumptions. For the most robust and comprehensive plan, consider consulting with a financial advisor who can provide personalized advice based on your specific needs and goals. However, by exploring different scenarios using these calculators, you can better understand the various factors that may influence your retirement savings and take steps towards a financially secure retirement.