The Department of Social Security provides its own calculator. Enter your date of birth and your current earnings, and the department will tell how much Social Security you’ll receive in retirement. Someone born in 1975, for example, and earning $80,000, can expect to receive $2,539 each month in today’s money if they retire at the age of 67.
That makes the savings planning a lot easier. Now instead of trying to save enough to generate $5,000 a month, you only need to save enough to generate about half that amount, or about $390,000. If you’re 45 and have already saved $50,000, that’s only a little more than $500 per month.
Making these kinds of calculations isn’t difficult. It’s also essential, and the sooner you do it the better. It’s much easier to start saving a little in your 401(k) every month as early as possible than try to catch up just before your retirement.
We also have put together an annuity calculator if that helps!
- What Is a 401(k)?
- How a 401k Plan Works
- 401k Contribution Limits
- The Difference Between a 401(k) and a Pension
- The Benefits of a 401k
- Four Alternative 401(k) Plans
- How Employers Should Choose a 401(k)
- What Is an Indexed Annuity?
- 5 Questions Employees Should Ask Before Choosing a 401(k)
- Contributing to Your 401(k) Plan
- Contribution Limits
- Matching Contributions
- Your Age
- How to Set Your 401(k) Contribution Targets
- Calculating Your Social Security Benefits
- What’s In Your 401k Plan?
- Track Your 401(k)
- The Present and Future Value of Your 401(k) and Why You Need to Know Them
- Rolling Over Your 401(k)
- You Don’t Have to Rollover Today
- Moving Your 401(k) to Your New Employer With a Direct Rollover
- Moving Your 401(k) to Your New Employer With a 60-Day Rollover
- Borrowing Funds from Your 401(k)
- Lend Yourself Interest-Free 401(k) Funds
- Borrowing from Your 401(k) to Buy a Home