# Planning for Retirement is Easier when Calculators Help the Process

Planning for retirement starts with establishing savings goals based on current household budget priorities. From today’s assessment, you then move on to project what you might need when you plan to retire in the future. Projections are best done when a structured approach is followed, and the calculators below have been designed for this very purpose.

Step 1: Enter your current age
Step 2: Enter the age that you plan to retire
Step 3: Enter your current annual income
Step 4: Estimate your potential annual raise as a “%”. For a long-term estimate, this figure should be in the 2% to 6% range, unless you expect advancement potential in your future.
In the example shown, \$3.5 million is the forecast. As a “rule of thumb”, “10%” your earnings should be set-aside for retirement. Use this figure later.

## Net Worth Calculator

Your Net Worth establishes your starting point and what may be invested now for later. There are three sections to complete that require your input and completion. The number eventually appearing at the top of the calculator, “Your Current Net Worth”, will be used in the next calculator.

Step 1: Assets – Enter current values of your assets in the applicable boxes;
Step 2: Liabilities – Enter the principal balance of your mortgage and all other outstanding debt in “Other”;
Step 3: Growth – This part is optional, but the clear message is that debt can destroy your savings plan if allowed to grown. Carry the value calculated for your “Net Worth” forward to the next indicator.

## Savings Goal Calculator

The objective of this final calculator is to demonstrate how monthly savings and returns on your Net Worth can build toward a “Savings Goal”. The returns are adjusted for inflation, such that your goal can be viewed in today’s dollar value terms. You an vary your assumptions as you go, to see if your savings rate can produce the desired savings goal within the time available.

Step 1: Enter “10%” of the earnings calculated in the “Lifetime Earnings Calculator” as your “Savings Goal”;
Step 2: Enter “10%” of your current monthly income in the “Save Monthly” box;
Step 3: Enter a “Rate of Return” – “7%” is a good place to start;
Step 4: Enter an “Inflation Rate” – long-term rates tend to average 2.5%;
Step 5: Enter the Net Worth figure from the previous calculator in the “Currently Saved” box.
Press the “Submit” button, and the calculator will tell you if your plan is reasonable. Keep in mind that Social Security will cover approximately 40% of your needs after retirement. The amount from your savings and investments are to supplement this income.

 2013 Copyright www.DebtSolution-Strategies.com Life Time Earnings Calculator, Net worth Calculator and Savings Calculator are free to use on this site. * These calculators can assist you in preparing initial planning targets. It is always prudent to review your plan with a professional to refine your plan going forward.