Retirement calculator
Our retirement calculator will help you work out how much income you’ll have when you retire, and what changes you’ll need to make to your financial habits to achieve your ideal retirement.
How the retirement calculator works
Here are some explanations of the definitions we’ve used in our retirement calculator.
1. Your current age
Your current age.
2. Your planned retirement age
The age you plan to retire. You can choose to retire at any age. For those born after 1960, 67 is considered the full retirement age, as this is when you will receive your full Social Security benefits.
When calculating your retirement income, our calculator uses a life expectancy of 95 years. The Social Security Administration provides a “life expectancy calculator” that will show the average number of additional years a person can expect to live based only on the sex and date of birth you enter.
3. Your current savings
This is the total amount you currently have in all your retirement savings accounts, including 401(k)s, individual retirement plans (IRAs), annuities, and any other retirement account.
4. Annual retirement contributions
This is the annual amount you save for retirement. This will include contributions to your IRAs, your 401(k) – including any matching employer contributions – and any other retirement savings accounts. While there is no set amount to save for retirement, experts often recommend saving between 10% and 15% of your pre-tax salary for retirement annually.
This is the annual rate of return you expect your investments to earn.
A typical retirement portfolio generates an average annual return of 5% to 8% based on market conditions. Your return will depend on factors including inflation, contributions, investment selection and fees.
5. Annual retirement expenses
This is how much you expect to spend annually in retirement. Your spending patterns will change in retirement; work-related expenses will go down, while health-related costs may increase. Experts often recommend replacing 80% of your income per year in retirement to enjoy a comfortable retirement.
6. Your total savings
This is the total sum of all your savings, assets, and investments. It’s important the figures you provide are as accurate as possible, so your retirement calculations are correct.
7. Your desired retirement fund
Based on your ideal retirement lifestyle and the figures you have provided; this is the minimum amount you need to enjoy a comfortable retirement.
8. Your current retirement fund
Based on the figures you have provided; this is the projected amount you’ll have when you retire. This is not a guaranteed figure and should be used as a guide only.
9. Retire with a financial advisor
Should you opt to work with a financial advisor and get expert guidance when planning and saving for retirement, this is the amount of money you could potentially have when you retire. Multiple industry studies suggest that getting professional financial advice can add between 1.5% and 4% to portfolio returns over the long term. This is dependent on the time period and how returns are calculated.
Get expert retirement advice
Getting ready for retirement can be a complex and overwhelming experience. With so many factors at play, it pays to get expert advice.
From making confident investment decisions to identifying ways you can grow your assets; a financial advisor will work with you to create a financial plan that will help make your dream retirement a reality.
Unbiased can match you with a single financial advisor perfectly suited to meet your needs. Answer a few simple questions, and we’ll look after the rest.
Frequently asked questions
Writer
Charlie Barton is a writer at Unbiased. He has been writing about personal finance and investing since 2017, with extensive knowledge of platforms and products. Charlie has a first-class degree from the London School of Economics.