Estimate your potential retirement income based on your current savings and future contributions.
7%
Your estimated retirement nest egg will be: —
Understanding Your BRS Retirement Readiness
The BRS Retirement Readiness Calculator is designed to provide a simplified projection of your potential retirement savings. By inputting your current financial situation and future expectations, you can gain a clearer picture of how prepared you might be for retirement.
How the Calculation Works
This calculator uses a future value of an ordinary annuity formula, combined with the growth of a lump sum, to project your total retirement savings. The core components are:
Current Savings: This is the lump sum you currently have saved for retirement. It will grow over time based on the expected annual return rate.
Annual Contribution: This is the amount you plan to save and invest each year. These contributions also grow with the expected annual return rate.
Time Horizon: The period between your current age and your target retirement age is crucial. A longer time horizon allows for more compounding.
Expected Annual Return Rate: This is an estimated average annual percentage gain you anticipate from your investments. It's important to remember that actual returns can vary significantly and are not guaranteed.
The Formula (Simplified Explanation)
The total future value (FV) is calculated as the sum of two parts:
Future Value of Current Savings (Lump Sum):FV_lump_sum = P * (1 + r)^n
Where:
P = Current Savings
r = Expected Annual Return Rate (as a decimal)
n = Number of years until retirement (Retirement Age – Current Age)
Future Value of Annual Contributions (Annuity):FV_annuity = C * [((1 + r)^n - 1) / r]
Where:
C = Annual Contribution Amount
r = Expected Annual Return Rate (as a decimal)
n = Number of years until retirement
Total Retirement Savings = FV_lump_sum + FV_annuity
Important Considerations:
Inflation: This calculator does not explicitly account for inflation, which erodes the purchasing power of money over time. Your actual retirement expenses may be higher than anticipated if inflation is not considered.
Taxes: Investment gains and withdrawals in retirement may be subject to taxes, which are not factored into this projection.
Investment Risk: The expected annual return rate is an assumption. Actual investment performance can be volatile and may result in lower or higher returns than projected.
Retirement Expenses: This calculator projects savings, not specific retirement income needs. It's essential to estimate your expected annual expenses in retirement.
Investment Fees: Management fees and other investment costs can reduce your net returns.
Use this calculator as a starting point for your retirement planning. Consult with a qualified financial advisor for personalized advice tailored to your specific circumstances.
function calculateRetirementIncome() {
var currentSavings = parseFloat(document.getElementById("currentSavings").value);
var annualContribution = parseFloat(document.getElementById("annualContribution").value);
var retirementAge = parseInt(document.getElementById("retirementAge").value);
var currentAge = parseInt(document.getElementById("currentAge").value);
var expectedAnnualReturn = parseFloat(document.getElementById("expectedAnnualReturn").value) / 100; // Convert percentage to decimal
var resultElement = document.getElementById("result");
var resultSpan = resultElement.querySelector("span");
// Validate inputs
if (isNaN(currentSavings) || isNaN(annualContribution) || isNaN(retirementAge) || isNaN(currentAge) || isNaN(expectedAnnualReturn)) {
resultSpan.innerText = "Invalid input. Please enter valid numbers.";
return;
}
if (currentAge >= retirementAge) {
resultSpan.innerText = "Current age cannot be greater than or equal to retirement age.";
return;
}
var yearsToRetirement = retirementAge – currentAge;
// Calculate Future Value of Current Savings (Lump Sum)
var futureValueLumpSum = currentSavings * Math.pow(1 + expectedAnnualReturn, yearsToRetirement);
// Calculate Future Value of Annual Contributions (Annuity)
var futureValueAnnuity = 0;
if (expectedAnnualReturn > 0) {
futureValueAnnuity = annualContribution * ( (Math.pow(1 + expectedAnnualReturn, yearsToRetirement) – 1) / expectedAnnualReturn );
} else {
// If return rate is 0%, future value is simply the sum of contributions
futureValueAnnuity = annualContribution * yearsToRetirement;
}
// Total Retirement Savings
var totalRetirementSavings = futureValueLumpSum + futureValueAnnuity;
// Format the output to be currency-like but without the dollar sign initially
resultSpan.innerText = formatAsCurrency(totalRetirementSavings);
}
function formatAsCurrency(amount) {
return amount.toLocaleString(undefined, {
minimumFractionDigits: 0,
maximumFractionDigits: 0
});
}
// Initialize display for range slider
document.addEventListener('DOMContentLoaded', function() {
var rangeSlider = document.getElementById('expectedAnnualReturn');
var displaySpan = document.getElementById('expectedAnnualReturnDisplay');
displaySpan.innerText = rangeSlider.value + '%';
});