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Things to Know about Retirement Planning Calculators

By Megan C @ LivingSenior - September 19, 2012

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Retirement planning calculators are available online and can be used free of charge. These calculators appear to offer a great way for individuals to calculate how much savings they need to decide for their retirement as well as offer options for retirement planning. However, there are a few things that individuals should know before using a retirement planning calculator to determine their retirement savings and how to go about creating that savings. Here are a few things to know about retirement planning calculators.

Questions

Many retirement planning calculators, as the one found on the senior website AARP, ask several questions to determine retirement planning goals as well as retirement planning savings options. These questions may seem intrusive to some individuals. However, it should be taken into consideration that when retirement living calculators ask various questions such as age, income and other personal questions the calculator software is asking in order to help you determine how long you have planned for retirement and how much money you can feasibly set aside.

Late Retirement

Unfortunately, many individuals in the baby boomer generation are not prepared for their retirement and are facing issues due to this unpreparedness. Some of these individuals have found that they have very little in savings for retirement while others felt they had enough in savings and have found that they are not going to have enough for their full retirement plans. For this reason there are late retirement plans available. However, it should be taken into consideration their retirement planning calculators are not really designed for late retirement planning. These calculators are designed for individuals in their 30s or 40s who may just be starting on their retirement plans. For individuals who are planning a late retirement and have some money in retirement savings the calculator can still be useful. However, individuals who do not have any retirement savings may need to look at other options to determine their retirement plan.

Accuracy

The retirement planning calculators are strictly for determining a ballpark figure. Unfortunately, too many individuals use these calculators and decide to use the results of the calculators as a diehard, set in stone method of determining the retirement costs. They also may use the figures of the retirement planning calculator gives as stone cold figures. The truth of the matter is that though the retirement planning calculators are somewhat accurate there is some room for adjustments and individuals should not feel that they have to go exactly by what calculator says.

Alternatives

Retirement planning calculators may also offer alternative methods of savings. It is always a good idea to check with these alternative methods of savings to determine if any of them work for a particular situation.

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