Retirement Calculator

What is Retirement Planning?

Retirement planning involves calculating how much money you need to save today to provide sufficient income during retirement.

Formula: FV = P(1 + r)^n + PMT × [((1 + r)^n - 1) / r]

Where FV = Future Value, P = Present Value, r = Return Rate, n = Years, PMT = Regular Contribution

Investment Returns

Conservative (4-5%): Lower risk investments

Moderate (6-8%): Balanced portfolio

Aggressive (9-11%): Stock-heavy portfolio

Historical Average: ~10% before inflation

Key Considerations

Time Horizon: Years until retirement

Risk Tolerance: Affects investment mix

Inflation: Reduces purchasing power

Healthcare: Costs increase with age

Planning Tips

• Start saving early to leverage compound growth

• Maximize employer 401(k) match

• Diversify investment portfolio

• Consider healthcare costs

• Review plan annually and adjust