Project how much you'll need in retirement. See the impact of regular contributions, different rates of return, and time in the market.
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How much will I need in retirement?
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Titan’s retirement calculator gives you the ability to project how much you’ll have in retirement based on your current savings strategy, and compare that to how much you’ll likely need.
To calculate how much you’ll have in retirement, this calculator factors in your current age, the age you plan to retire, your current annual pre-tax income, any retirement savings you already have, and the monthly contributions you plan to make to those savings.
This calculator doesn’t take into account any tax advantages, either at the time of contribution or in retirement. To see how tax advantages might affect your savings, use our 401(k) calculator or our Roth IRA calculator.
The calculator’s output is also informed by a few assumptions:
Estimated rate of return: Titan’s calculator uses the historical average growth rates for U.S. stocks, using benchmark indexes such as the S&P 500 Index, which is about 10%. You can change this if you want the calculator to project more conservative or aggressive returns.
Salary increase: This is how much your salary might increase each year. This calculator assumes a standard cost of living raise of 2%. It also assumes that as your salary increases, you continue to contribute the same amount monthly to your retirement savings. You can change this if you believe your situation will be different.
Inflation rate: This calculator assumes an inflation rate of 3%, and adjusts your estimated retirement payout accordingly. This assumption is built into the calculator and cannot be changed.
Titan’s calculator assumes that 80% of your pre-tax salary today, adjusted for inflation, is a conservative estimate of the annual amount you’ll spend in retirement to keep up with your cost of living. The calculator also takes into account how long you expect to live. According to 2019 data from the CDC, the average American life expectancy was 78.8 years. But when planning for retirement, it’s better to overestimate your life expectancy, rather than underestimate it—that’s why our default is age 90. The Census Bureau reported in 2011 that nearly 5% of adults lived past age 90—and that number is expected to continue to grow.
How much you need for retirement depends on the age at which you plan to retire, and how much money you think you’ll need each year in retirement to be comfortable.
Most people plan to retire between the ages of 65 and 67, according to Gallup. No two retirees’ budgets will look alike, but most can expect to have recurring expenses like housing, transportation, food, and health care. Retirees are also likely to spend less annually than they did when they were working. The Bureau of Labor Statistics (BLS) notes total annual expenditures averaged $49,279 among age 55 and older households. Those 55 to 64 spent $56,267, while the 75-and-older group spent $36,673.
To move beyond the averages, a retirement budget should factor in how they’re used to living—that is, what their pre-retirement income affords them. Retirement planners, as a rough rule of thumb, say people need about 80% of the income they earned while working in retirement.
Retirees want to be confident that their money will last in retirement and that they aren’t taking out so much each year that they outlive their savings. The 4% rule can help with this. Some experts say that if an investor withdraws 4% of their savings in the first year of retirement, and then in the following years add a bit on top of that to adjust for inflation, they have a high probability of maintaining enough savings for a 30-year retirement.
An investor could apply the 4% rule to their projected savings and ask themselves: Is 4% of this projected payout enough to cover my living expenses? Does it equal or exceed 80% of my current pre-tax annual income?
“The key to reaching your retirement goals is planning very early,” says Eddie Lopez, a Titan analyst specializing in retirement, who recalls a former colleague’s saying: “Financial planning is just bringing the future to the present.” These benchmarks might help investors determine if they’re on track to reach their goals:
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