function calculateRetirement() {
var currentAge = parseFloat(document.getElementById('currentAge').value);
var retirementAge = parseFloat(document.getElementById('retirementAge').value);
var currentSavings = parseFloat(document.getElementById('currentSavings').value);
var annualContribution = parseFloat(document.getElementById('annualContribution').value);
var preRetirementReturn = parseFloat(document.getElementById('preRetirementReturn').value) / 100;
var inflationRate = parseFloat(document.getElementById('inflationRate').value) / 100;
var desiredIncomeToday = parseFloat(document.getElementById('desiredIncomeToday').value);
var postRetirementReturn = parseFloat(document.getElementById('postRetirementReturn').value) / 100;
var lifeExpectancy = parseFloat(document.getElementById('lifeExpectancy').value);
var resultDiv = document.getElementById('retirementResult');
var totalSavingsAtRetirementElem = document.getElementById('totalSavingsAtRetirement');
var desiredIncomeFutureElem = document.getElementById('desiredIncomeFuture');
var requiredNestEggElem = document.getElementById('requiredNestEgg');
var shortfallSurplusElem = document.getElementById('shortfallSurplus');
var yearsSavingsLastElem = document.getElementById('yearsSavingsLast');
var recommendationElem = document.getElementById('recommendation');
// Input validation
if (isNaN(currentAge) || isNaN(retirementAge) || isNaN(currentSavings) || isNaN(annualContribution) ||
isNaN(preRetirementReturn) || isNaN(inflationRate) || isNaN(desiredIncomeToday) ||
isNaN(postRetirementReturn) || isNaN(lifeExpectancy) ||
currentAge <= 0 || retirementAge <= 0 || lifeExpectancy <= 0 ||
retirementAge <= currentAge || lifeExpectancy 0) {
fvAnnualContributions = annualContribution * ((Math.pow((1 + preRetirementReturn), yearsToRetirement) – 1) / preRetirementReturn);
} else { // If return is 0, it's just sum of contributions
fvAnnualContributions = annualContribution * yearsToRetirement;
}
// 3. Total Savings at Retirement (Future Dollars)
var totalSavingsFuture = fvCurrentSavings + fvAnnualContributions;
// 4. Adjust Desired Retirement Income for Inflation (Future Dollars)
var desiredIncomeFuture = desiredIncomeToday * Math.pow((1 + inflationRate), yearsToRetirement);
// 5. Calculate Required Nest Egg to support desired income for yearsInRetirement
var requiredNestEgg = 0;
if (postRetirementReturn > 0) {
requiredNestEgg = desiredIncomeFuture * ((1 – Math.pow((1 + postRetirementReturn), -yearsInRetirement)) / postRetirementReturn);
} else { // If return is 0 during retirement, simply multiply income by years
requiredNestEgg = desiredIncomeFuture * yearsInRetirement;
}
// 6. Determine Shortfall/Surplus
var shortfallSurplus = totalSavingsFuture – requiredNestEgg;
// 7. Calculate how many years the actual savings will last
var yearsActualSavingsLast = 0;
if (postRetirementReturn > 0) {
var factor = (totalSavingsFuture * postRetirementReturn) / desiredIncomeFuture;
if (factor >= 1) { // If factor is >= 1, savings could last indefinitely or for a very long time
yearsActualSavingsLast = "indefinitely (or beyond your life expectancy)";
} else if (factor 0) {
yearsActualSavingsLast = totalSavingsFuture / desiredIncomeFuture;
} else {
yearsActualSavingsLast = "indefinitely (no withdrawals)";
}
}
// Display Results
totalSavingsAtRetirementElem.innerHTML = "Projected Savings at Retirement: $" + totalSavingsFuture.toLocaleString(undefined, { minimumFractionDigits: 2, maximumFractionDigits: 2 });
desiredIncomeFutureElem.innerHTML = "Desired Annual Income in Retirement (Future $): $" + desiredIncomeFuture.toLocaleString(undefined, { minimumFractionDigits: 2, maximumFractionDigits: 2 });
requiredNestEggElem.innerHTML = "Estimated Nest Egg Needed: $" + requiredNestEgg.toLocaleString(undefined, { minimumFractionDigits: 2, maximumFractionDigits: 2 });
if (shortfallSurplus >= 0) {
shortfallSurplusElem.innerHTML = "Surplus: You are projected to have a surplus of $" + shortfallSurplus.toLocaleString(undefined, { minimumFractionDigits: 2, maximumFractionDigits: 2 }) + " at retirement.";
} else {
shortfallSurplusElem.innerHTML = "Shortfall: You are projected to have a shortfall of $" + Math.abs(shortfallSurplus).toLocaleString(undefined, { minimumFractionDigits: 2, maximumFractionDigits: 2 }) + " at retirement.";
}
if (typeof yearsActualSavingsLast === 'number') {
yearsSavingsLastElem.innerHTML = "Your Savings Will Last Approximately: " + yearsActualSavingsLast.toLocaleString(undefined, { minimumFractionDigits: 1, maximumFractionDigits: 1 }) + " years.";
if (yearsActualSavingsLast < yearsInRetirement) {
recommendationElem.innerHTML = "Recommendation: Your current plan may not provide enough income for your entire retirement. Consider increasing savings, delaying retirement, or adjusting your desired retirement income.";
} else {
recommendationElem.innerHTML = "Recommendation: Your current plan appears to be on track to meet your retirement income goals!";
}
} else {
yearsSavingsLastElem.innerHTML = "Your Savings Will Last: " + yearsActualSavingsLast + ".";
if (yearsActualSavingsLast.includes("indefinitely")) {
recommendationElem.innerHTML = "Recommendation: Your current plan appears to be on track to meet your retirement income goals!";
} else {
recommendationElem.innerHTML = "Recommendation: Your current plan may not provide enough income for your entire retirement. Consider increasing savings, delaying retirement, or adjusting your desired retirement income.";
}
}
}
// Run calculation on page load with default values
window.onload = calculateRetirement;
Understanding Your Retirement Savings Calculator
Planning for retirement is one of the most critical financial goals for most individuals. Our Retirement Savings Calculator is designed to help you visualize your financial future, estimate how much you need to save, and determine if your current savings strategy is on track to meet your retirement goals.
How It Works
This calculator takes into account several key factors to project your retirement savings and assess their longevity. It uses standard financial formulas to project the growth of your investments and the impact of inflation on your purchasing power.
Key Inputs Explained:
Current Age (Years): Your age today. This helps determine the number of years you have left to save.
Desired Retirement Age (Years): The age at which you plan to stop working and begin living off your retirement savings.
Current Retirement Savings ($): The total amount you have already saved in retirement accounts (e.g., 401(k), IRA) or other investment vehicles designated for retirement.
Annual Savings Contribution ($): The amount you plan to save and invest each year until retirement. Consistency here is key.
Expected Annual Investment Return (Pre-Retirement, %): The average annual growth rate you anticipate your investments will achieve before you retire. This is typically higher for younger investors taking on more risk.
Expected Annual Inflation Rate (%): The average rate at which the cost of goods and services is expected to increase. Inflation erodes the purchasing power of your money over time, so it's crucial to account for it.
Desired Annual Retirement Income (Today's $, $): The amount of income you wish to have each year in retirement, expressed in today's dollars. The calculator will adjust this for inflation to determine your future income needs.
Expected Annual Investment Return (During Retirement, %): The average annual growth rate you anticipate your investments will achieve while you are drawing income from them. This is often a more conservative estimate than pre-retirement returns.
Life Expectancy (Years): The age you expect to live to. This helps determine how many years your retirement savings need to last.
Understanding the Results:
Projected Savings at Retirement: This is the total estimated value of your retirement nest egg when you reach your desired retirement age, expressed in future dollars.
Desired Annual Income in Retirement (Future $): This shows how much annual income you'll need in retirement to maintain your desired lifestyle, adjusted for inflation from today's dollars.
Estimated Nest Egg Needed: This is the total amount of money you would need at retirement to generate your desired annual income for your entire life expectancy, given your post-retirement investment return.
Shortfall/Surplus: This indicates whether your projected savings will be enough to meet your estimated nest egg needs. A surplus means you're on track or ahead; a shortfall means you may need to adjust your plan.
Your Savings Will Last Approximately: This crucial metric tells you for how many years your projected retirement savings can support your desired annual income.
Recommendation: Based on your inputs, the calculator provides a simple recommendation on whether your plan is on track or if adjustments might be necessary.
Projected Savings at Retirement: Approximately $1,916,182
Desired Annual Income in Retirement (Future $): Approximately $168,828
Estimated Nest Egg Needed: Approximately $2,379,200
Shortfall: Approximately -$463,018 (meaning you're projected to be short by this amount)
Your Savings Will Last Approximately: 7.5 years
Recommendation: Your current plan may not provide enough income for your entire retirement. Consider increasing savings, delaying retirement, or adjusting your desired retirement income.
This example highlights how important it is to start early, save consistently, and understand the impact of inflation and investment returns.
Important Considerations:
Market Volatility: Investment returns are never guaranteed and can fluctuate significantly. The calculator uses average expected returns.
Inflation Surprises: Inflation rates can be unpredictable, impacting your purchasing power more than anticipated.
Healthcare Costs: Retirement often brings increased healthcare expenses, which can be substantial and are not directly accounted for in this basic income calculation.
Social Security & Pensions: This calculator focuses solely on personal savings. Remember to factor in other income sources like Social Security or pensions when building your complete retirement plan.
Taxes: Withdrawals from retirement accounts are often subject to taxes, which will reduce your net income.
Use this calculator as a powerful tool to guide your retirement planning, but always consult with a qualified financial advisor for personalized advice tailored to your specific situation.