| Retirement Calculator Question |
|
|
|
|
|
RyanW
New Member
Cash: $ 0.65
Posts: 3
Joined: 14 Aug 2012
|
| Retirement Calculator Question |
 |
|
I'm trying to anticipate how much I would need to retire at a certain age. For example, if I want to retire at 50, how much would I need? 51, 52, etc. Logically, I would need more money to retire early, and less money as my age climbs.
The problem that I see is that every retirement calculator that I use suggests that I'd need LESS money to retire at 50 than I would at 70, while keeping every other factor static.
An example of this, using the Ultimate Retirement Calculator:
Age 50: $2,501,375
Age 70: $4,022,950
And, I cannot be misinterpreting these values. The explanation says "This is the amount you will need to have saved by retirement age in order to fund your retirement plan."
Anyone have an explanation about why this occurs (on every retirement calc I've used) and/or a suggestion of a retirement calc that would give me a logical if not accurate result?
Thanks,
Ryan
|
Tue Aug 14, 2012 3:01 pm |
|
|
RyanW
New Member
Cash: $ 0.65
Posts: 3
Joined: 14 Aug 2012
|
http://financialmentor.com/calculator/best-retirement-calculator
Age: 34
Retirement age: 50 (This value would need to be changed)
Life Expectancy: 105
Annual Inc $: 73500
Exp. Annual Infl: 3
-------
Curr Retirement Savings: 78,000
Monthly Contrib: 900
Age to stop contrib: 50 (This value would need to be changed to match retirement age)
Annual Int Rate: 8
Taxes: 30 (Took a guess with this one)
-------
Pension: 950
Rentals: 2200
Soc Sec: 1650 (accounting for the 75% payout)
Change the ages indicated above to 70, and you'll see that the required amount is significantly larger than the age 50 amount.
|
|
Tue Aug 14, 2012 9:47 pm |
|
|
RyanW
New Member
Cash: $ 0.65
Posts: 3
Joined: 14 Aug 2012
|
quote:
Originally posted by coaster
(my guess is the anwers are in future value dollars -- the numbers would be in the general ballpark for average inflation -- you could rerun your calculation with zero percent inflation and see what numbers you come up with)
Looks like you're right.
Removing inflation puts the values at $661,622 (50) and $266,148 (70).
Thanks for pointing this out to me.
|
|
Tue Aug 14, 2012 9:54 pm |
|
|
|
