Is It Worth Using A Simple Retirement Calculator?

If you want to find out how you stand with regards to your retirement, using a simple retirement calculator is the way to go, but make sure you are prepared for bad news. Why would I say that? Simply because with life expectancy growing, there are more retirement years, theoretically, that need saving for, so even if you are saving what you thought was a good amount for your retirement, it may turn out to be insufficient.

A simple retirement calculator will take into account your age now, how long ago you started saving, if you did, how much you save each year, and how long you are expected to live. Because of the life expectancy being extended, and because of the current economy that is not bringing in the return on investments expected, despite your good intentions, you may not have been saving enough for your retirement.So be prepared.

Do keep in mind when you look at the numbers the calculator shows you, that it assumes you will be spending generally 70 percent of what you have been in previous years. But these are only generalized numbers, and you might want to delve into your situation more closely yourself, or with a retirement planning expert. Remember that the expert can advise, but the decisions made are yours and yours alone. If you think you will be able to live on a lot less than 70%, perhaps because you already own your own home, and won’t have to pay for accommodation when you retire, then that can make a huge difference to your retirement.

On the other hand, even if you do own property, what would happen if you were unable to care for yourself, and you had to move into a care home? Would the money from the sale of your home be enough to keep you in a care home for years? Tough decisions will have to be made, but the calculator can be a guide for your retirement.

Unfortunately, there are a lot of unknowns so you should always plan to save as much as you can for your retirement, just in case. On the other hand, you don’t want to be miserable, slashing your current expenses now so that you can save for your future. You don’t want to spend your retirement regretting that you didn’t do any of the things you wanted to when you were younger. In other words, you want to have a life, don’t you? Yes, there are a lot of conflicts, but a simple retirement calculator can help you see at a few glances how saving more now can have a drastic effect on your future, or how by working a few years longer, you can have a decent retirement.

So take a look at a simple retirement calculator, having been fore- warned, and see what numbers it comes up with. It may shock you into action if you have not been saving at all, or even if you have, but just not enough. Then make your retirement decisions, based on your financial situation. In short, yes using a simple retirement calculator will help you plan for your retirement.