Estitame your Savings
Estimate Your Retirement Savings Goal
How much might you need to retire? Use this worksheet to help target a total accumulation goal.
| Example | You | |
| 1. How much is your current income? | $50,000 | |
| 2. Multiply this amount by .80. This is an estimated annual income in retirement, in today’s dollars, based on 80% of your current income. (Or enter a different amount, if you choose. Most experts suggest 70% to 100% of your current annual income.) | $40,000 | |
| 3. How much might you receive from Social Security each year, in today’s dollars? Visit www.socialsecurity.gov to estimate your Social Security income. | $20,000 | |
| 4. How much might you receive each year from other sources, in today’s dollars, such as pension income? | $0 | |
| 5. Add lines 3 and 4. This is your total estimated annual income, in today’s dollars, from other sources. | $20,000 | |
| 6. Subtract line 5 from line 2. This is your estimated income gap, which you will need to make up from your retirement savings. | $20,000 | |
| 7. How many years until you retire? | 20 years | |
| 8. Find the corresponding factor from Table A below and enter it here. | 1.81 | |
| 9. Multiply line 6 by line 8. This is the amount that your savings will need to generate in year one of your retirement. | $36,200 | |
| 10. How long do you expect your retirement to last? | 25 years | |
| 11. Find the corresponding number from Table B below and enter it here. | 22.32 | |
| 12. Multiply line 9 by line 11. This is the target amount you may need to accumulate by the time you retire. | $807,984 |
This worksheet assumes that inflation rises at an average of 3% per year both before and during retirement. It also assumes that your investments grow at an average of 6% per year before retirement, and 4% per year during retirement. Such assumptions are hypothetical and cannot be guaranteed.
This worksheet is not meant as advice, but as a way to provide a general estimate for illustrative purposes. Your specific goal should take into consideration your total family income, your current and expected assets, and other unique circumstances. A financial professional can help you calculate a goal that is specific to your particular situation.
Table A
| Years until retirement | 5 | 10 | 15 | 20 | 25 | 30 | 35 | 40 |
| Factor | 1.16 | 1.34 | 1.56 | 1.81 | 2.09 | 2.43 | 2.81 | 3.26 |
Table B
| Years in retirement | 5 | 10 | 15 | 20 | 25 | 30 | 35 | 40 |
| Factor | 4.90 | 9.58 | 14.03 | 18.27 | 22.32 | 26.17 | 29.84 | 33.34 |
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