Am I On Track to Meet My Retirement Goals?
This calculator helps you assess if you are track to meet your retirement goals.
The landscape of planning for retirement today is much different than it was a generation ago. Unlike previous generations, who had set pensions and very little involvement in creating and managing their retirement plans, individuals today are actively involved in handling their own retirement funding. Unfortunately, most people are not equipped with the knowledge and tools necessary to be able to adequately perform this task.
The consensus view among financial planning experts is that most of the public is not accumulating the savings necessary to properly fund their retirement. There are three primary components to this dilemma: 1) a move away from defined pension plans towards do-it-yourself (DIY) retirement funding; 2) longer average life expectancy (meaning retirement savings will likely run out too soon); and 3) lack of knowledge regarding required savings levels and optimum investment strategies.
Related to the third point, research has shown that people who DO give some thought and calculation to the savings required to fund their retirement have a much more realistic and accurate view of what is required. One study found that people who have performed a retirement needs calculation are more than twice as likely as those who have not of expecting they will need to accumulate at least $1 million before retiring. Another study revealed that 77% of people investing in a retirement plan would increase their retirement savings if they knew the specific amount they needed to save.
The Retirement Planning Calculator below can help you understand what investment strategy is required to meet your retirement needs. The calculator shows if you are currently on track to achieve your financial retirement objectives, and, if not, enables you to perform a “what if” analysis by changing certain variables (e.g., retirement age, savings levels), and see the impact these changes have on your ability to fund your retirement. While this will provide some general direction, it is always wise to seek advice from a professional financial advisor to make a final decision as to which is the best option for you.
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