# Use A Retirement Savings Calculator

# Retirement Savings Calculator

Thinking about retiring? Then a **retirement savings calculator** can be a big help. A retirement savings calculator can tell you exactly when you will be able to retire. To use a *retirement savings calculator* you will need that following information:

1. Your current savings

2. What your annual return on these investments

3. The tax rate of those investments

4. An average inflation rate

5. The annual amount of retirement income you will need

6. Any other income available

7. Your Current age

8. Your desired retirement age

9. The age you will be when you start making withdrawals for retirement

10. Is the account able to grow protected from taxes

11. What is the rate of return on future deposits

12. What is the rate of return assumed after withdrawals begin

A retirement savings calculator will then be able to provide that amount you will need to save in order to retire. A rule of thumb when using a retirement saving calculator is not to assume less than 70% of your current annual income.

There are some pitfalls to avoid when using a retirement planning calculator. Be cautious of assuming too high a rate of return. This may lower the amount the retirement savings calculator says you need to put away but it also increases the chance of losses.

An adjustment that will lower the amount the retirement savings calculator show needed for deposits is to increase the planned retirement age. This provides more years of deposits. It also allows the retirement savings calculator more years of earnings and fewer years of withdrawals.

Examples of other income to consider for the retirement savings calculator are Social Security, rental income, part time employment and inheritance.

A tax or investment professional will be able to help you determine if the investment is taxable or not during the accumulation phase. You can also find information at irs.gov.

By Arnie Fontenot