There are tons of retirement projection calculators out there. I mean tons! We’ve sifted through a number of these to help us Millennials narrow it down to the most useful (and simplest to use).
This tool easily allows you to see what your contributions as well as your employer matches would eventually add up to at retirement. Have fun with the contributions…put your actually numbers in, then see how drastic the changes can be if you truly push yourself to contribute even more.
Vanguard Retirement Calculator
How long will your retirement nest egg last? How much could your investments grow? Answer a few questions to see a long-term projection. Then try making a few changes to view the impact on your results.
Chase Retirement Calculator
This Chase retirement calculator may be the best one I’ve used. It allows you to use several practical inputs but its also not overwhelming. It also easily allows you to include your spouse on all calculations. You start with the basic inputs; age and income, then basic health info to give you an idea of your life expectancy (e.g. how long you need your retirement funds to last – mine was 37 years). This retirement calculator generates a spending figure you are using now based off income numbers and you decide if that is about what you want to spend in retirement – for us Millennials this number will actually go up significantly because we haven’t hit our peak income earning years just yet. Lastly you put in your current retirement assets and contributions, as well as your risk level, then the results page gives you a percentage of likelihood you’ll hit your goal (you want to be in the 50-70% range for your “Probability of Success”). You can easily go back and modify your inputs to see what you need to do differently to hit your retirement goals; save more, retirement later, spend less in retirement, etc. This is one of the best retirement calculators I have used.
Vanguard Retirement Income Calculator
How much income will you need in retirement? Are you on track? Compare what you may have to what you will need.
Compound Interest Calculator
Use this calculator to determine how much your money can grow using the power of compound interest. The results are absolutely stunning. The power of compounding interests is astounding, but it takes time. At least 5-10 years, but the longer the better. See the difference for yourself and plug-in your current savings calculators and years until retirement. Then see what happens if you work 5 years longer…or wanted to retire 5 years early.
Become a Millennial Millionaire
It may surprise you how quickly a Millennial can accumulate a million dollars. Use this calculator to determine the annual amount you would have to set aside each year to reach a million dollars and reach your goal to be a millionaire.
Early Retirement Savings Rate
Retiring is not about what you earn, its about what you save. Your savings rate is the single most important number when it comes to determining if you can retire and when you’ll be financially independent to do so. This is a fantastic tool for Millennials to establish what percentage of their income they need to save. Compound interest is a powerful tool, but it takes time to truly work its magic.
Asset Allocation Performance Models
All investors obviously want well above market gains for their investment portfolio. Who wouldn’t? But if you’re a diligent saver, one who is using a dollar-cost averaging approach and saving weekly, bi-weekly or even monthly into your retirement account, you should concentrate on the returns you need to achieve your goal. Warren Buffet says its not about how many things you get right when investing, its more about making sure you don’t do too many things wrong, e.g. avoiding large mishaps and minimizing your risk. What exactly should your asset allocation be? Look at historical data per investment mix to see which is right for based off potential returns and risks.
How Long Will My Money Last?
You’ve spent your whole life saving and now it is time to see just how long that retirement nest egg with last. The below two calculators are some of my favorites to use because they allow you to see how long your money will last with systematic annual withdrawals. Now obviously we Millennials are all a long ways away from retirement. But, tools like this allow you to estimate how much you need to save and/or plan on spending in retirement to be successful. Say you want to retire early like me, well then how much do you need annually to live? You simply plug in your savings, annual spending, annual return and tax rate, and you have your likelihood of that money lasting 30+ years.