How to Use a Retirement Planning Calculator

 
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Using a retirement planning calculator can be a bit tricky. Though these calculators are available online through sites such as the AARP, the calculators may not be as straightforward as one would think. Here is a quick how to example of using retirement living calculators. For the purposes of this blog post, our content manager Megan Coogle has volunteered to work through the AARP retirement planning calculator. This retirement planning calculator is free of charge and is one of the most popular online.

Step One – Finding the Calculator>/h3>

You can find the retirement planning calculator on the AARP website by clicking here. You may also find the calculator directly through this link http://www.aarp.org/work/retirement-planning/retirement_calculator/. If the AARP calculator is not opening for you or if you wish to use a different calculator, a simple internet search for “free retirement planning calculator” will bring up the results you’re looking for. Once you have found the calculator, please continue to step two.

Step Two – Fill in the Blank

Step two is possibly one of the easiest steps of using retirement planning calculator. If you are using the AARP calculator you will be asked for several pieces of information including your name and your age. This is to determine how long you have to plan for your retirement. You may also be asked for your income. Again, this is to help determine how long and how much money you have to put towards a retirement planning.

You may also be asked how you view your retirement living. This means, do you plan on having a retirement that is a on a strict budget, about the same as or living now or do you want an extravagant retirement lifestyle. This question may not seem applicable, however for many individuals this doesn’t determine how much money needs to be set aside for retirement planning.

Step Three – Reviewing Your Results

Once you have completed the questions asked by the retirement planning calculator you will be given a retirement graph review. This will show you approximately how much money you need to set aside for retirement, job income, and how much your drawing on retirement savings. It will also offer you an option or various options on how you can increase your retirement savings, how you can live a higher level of retirement or how you can begin a retirement savings plan if you do not currently have one.

You can use these results to determine how to move forward in your retirement planning or you can forward these to a family member to help them with their retirement planning goals.