Plan your dream retirement together. Estimate your retirement nest egg and monthly income needs.
Your Retirement Inputs
Your Retirement Projection
Years until Retirement
Your Estimated Retirement Nest Egg
Estimated Monthly Income Needed (in retirement year dollars)
Projected Income Shortfall/Surplus (Monthly)
Understanding Your Retirement Projection
Planning for retirement is a crucial step towards financial security, especially for couples. This calculator helps you estimate the total amount you might need for retirement (your "nest egg") and how much monthly income you can expect based on your current savings, contributions, and investment growth. It also factors in inflation to give you a more realistic picture of future purchasing power.
How the Calculator Works:
Years to Retirement: Calculated as the Desired Retirement Age minus the older partner's current age. This ensures you plan for the longest potential retirement period.
Projected Future Value of Current Savings: Your current savings are projected to grow over the Years to Retirement using the Expected Annual Investment Return. The formula used is Future Value = Present Value * (1 + rate)^n, compounded annually.
Projected Future Value of Annual Contributions: Each partner's annual contributions are projected to grow over the Years to Retirement. This is calculated using the future value of an ordinary annuity formula: FV = P * [((1 + r)^n – 1) / r], where P is the annual contribution, r is the annual investment return rate, and n is the number of years.
Total Estimated Retirement Nest Egg: This is the sum of the projected future value of current savings and the projected future value of all future annual contributions for both partners.
Future Value of Desired Monthly Income: Your Desired Monthly Income (in today's dollars) is first adjusted for inflation over the Years to Retirement to determine the actual monthly income needed in your retirement year. The formula is Future Income = Present Income * (1 + inflation rate)^n.
Total Estimated Monthly Income Needed (in retirement year dollars): This is the inflation-adjusted monthly income calculated in the previous step.
Projected Monthly Income from Nest Egg: This estimates how much monthly income your nest egg could sustainably provide throughout retirement. A common rule of thumb is the 4% withdrawal rule, but for simplicity and projection, we will consider how long the nest egg might last if a certain percentage is withdrawn annually to meet the income need. For this projection, we'll calculate the required nest egg to support the Desired Monthly Income (in retirement year dollars) over the Retirement Duration, assuming the remaining balance continues to grow at the Expected Annual Investment Return. A simplified approach: Target Nest Egg = (Monthly Income Needed * 12) / (Annual Withdrawal Rate). We'll use a placeholder to show shortfall/surplus after accounting for the adjusted income need.
Projected Income Shortfall/Surplus (Monthly): This is the difference between the Estimated Monthly Income Needed and the monthly income that can be generated from your nest egg.
Important Considerations:
This calculator provides an estimate. Actual results may vary based on market performance, changes in your savings habits, inflation, and life expectancy.
The Expected Annual Investment Return should be realistic. Higher returns come with higher risk.
Inflation significantly erodes purchasing power. It's crucial to factor it in.
This calculator assumes contributions are made at the end of each year and growth is compounded annually.
For a precise financial plan, consult with a qualified financial advisor.
function updateSliderValue(id, valueId) {
var slider = document.getElementById(id);
var valueDisplay = document.getElementById(valueId);
valueDisplay.textContent = slider.value;
// Update corresponding number input if it exists
var numberInput = document.getElementById(id);
if (numberInput) {
numberInput.value = slider.value;
}
}
function updateNumberInputValue(id, value) {
var numberInput = document.getElementById(id);
if (numberInput) {
numberInput.value = value;
}
}
function calculateRetirement() {
// — Get Input Values —
var currentAgePartner1 = parseFloat(document.getElementById("current-age-partner1").value);
var currentAgePartner2 = parseFloat(document.getElementById("current-age-partner2").value);
var currentSavingsPartner1 = parseFloat(document.getElementById("current-savings-partner1").value);
var currentSavingsPartner2 = parseFloat(document.getElementById("current-savings-partner2").value);
var annualContributionPartner1 = parseFloat(document.getElementById("annual-contribution-partner1").value);
var annualContributionPartner2 = parseFloat(document.getElementById("annual-contribution-partner2").value);
var desiredRetirementAge = parseFloat(document.getElementById("desired-retirement-age").value);
var retirementDuration = parseFloat(document.getElementById("retirement-duration").value);
var expectedAnnualReturn = parseFloat(document.getElementById("expected-annual-return").value) / 100; // Convert percentage to decimal
var annualInflationRate = parseFloat(document.getElementById("annual-inflation-rate").value) / 100; // Convert percentage to decimal
var desiredMonthlyIncomeToday = parseFloat(document.getElementById("desired-monthly-income").value);
// — Input Validation —
var inputs = [currentAgePartner1, currentAgePartner2, currentSavingsPartner1, currentSavingsPartner2, annualContributionPartner1, annualContributionPartner2, desiredRetirementAge, retirementDuration, expectedAnnualReturn, annualInflationRate, desiredMonthlyIncomeToday];
for (var i = 0; i < inputs.length; i++) {
if (isNaN(inputs[i]) || inputs[i] < 0) {
alert("Please enter valid non-negative numbers for all fields.");
return;
}
}
if (desiredRetirementAge <= Math.max(currentAgePartner1, currentAgePartner2)) {
alert("Desired retirement age must be greater than current ages.");
return;
}
// — Calculations —
var olderPartnerAge = Math.max(currentAgePartner1, currentAgePartner2);
var yearsToRetirement = desiredRetirementAge – olderPartnerAge;
if (yearsToRetirement 0) {
futureValueOfCurrentSavings *= Math.pow(1 + expectedAnnualReturn, yearsToRetirement);
}
// 2. Future Value of Annual Contributions (using FV of annuity formula)
var totalAnnualContribution = annualContributionPartner1 + annualContributionPartner2;
var futureValueOfContributions = 0;
if (yearsToRetirement > 0 && expectedAnnualReturn > 0) {
futureValueOfContributions = totalAnnualContribution * (Math.pow(1 + expectedAnnualReturn, yearsToRetirement) – 1) / expectedAnnualReturn;
} else if (yearsToRetirement > 0 && expectedAnnualReturn === 0) {
futureValueOfContributions = totalAnnualContribution * yearsToRetirement;
}
// 3. Total Estimated Retirement Nest Egg
var totalNestEgg = futureValueOfCurrentSavings + futureValueOfContributions;
// 4. Calculate Desired Monthly Income in Retirement Year (Inflation Adjusted)
var desiredMonthlyIncomeInRetirementYear = desiredMonthlyIncomeToday * Math.pow(1 + annualInflationRate, yearsToRetirement);
// 5. Estimate Monthly Income from Nest Egg & Shortfall
// A simplified approach: Estimate how much income the nest egg can support.
// We'll use a placeholder calculation to estimate a sustainable withdrawal.
// A common guideline is the 4% rule, but here we'll estimate the required capital.
// Required Capital = (Annual Income Need) / (Sustainable Withdrawal Rate)
// Let's assume a target sustainable annual withdrawal rate of 4% for estimation of shortfall.
var estimatedAnnualIncomeFromNestEgg = totalNestEgg * 0.04; // 4% withdrawal rule estimate
var estimatedMonthlyIncomeFromNestEgg = estimatedAnnualIncomeFromNestEgg / 12;
// Monthly Income Shortfall/Surplus
var incomeShortfall = desiredMonthlyIncomeInRetirementYear – estimatedMonthlyIncomeFromNestEgg;
// — Display Results —
document.getElementById("result-section").style.display = "block";
document.getElementById("years-to-retirement").textContent = yearsToRetirement.toFixed(0);
document.getElementById("retirement-nest-egg").textContent = "$" + totalNestEgg.toLocaleString(undefined, { minimumFractionDigits: 0, maximumFractionDigits: 0 });
document.getElementById("monthly-income-needed").textContent = "$" + desiredMonthlyIncomeInRetirementYear.toLocaleString(undefined, { minimumFractionDigits: 2, maximumFractionDigits: 2 });
document.getElementById("income-shortfall").textContent = "$" + incomeShortfall.toLocaleString(undefined, { minimumFractionDigits: 2, maximumFractionDigits: 2 }) +
(incomeShortfall >= 0 ? " (Shortfall)" : " (Surplus)");
}