Retirement Calculator

The purpose of a retirement calculator is to help you find specific answers to what appears to be difficult questions.Questions like:

• How much money will I need to retire --(lump sum or cash flow)
• At what age can I reasonably expect I can retire?
• How long will I need retirement income?
• Will there be anything left for my beneficiaries?

Add up you and your spouse’s gross income. That’s all the money of have coming in:

• from employment
• investments
• rental properties
• government benefits
• Anything that brings in the cash.

Next subtract all your variable expenses not the fixed ones! Like:

• Income Tax* *We subtract income tax, so you can see your after tax income.
• RRSP contributions
• Mortgage payment--but not the property tax
• Children expenses-Education, clothing, insurance, sports, etc.
• Loan payments (Car, furniture, vacations etc.)
• Credit card payments

Any payment that would be gone for good once you have paid off the balance.

Don’t subtract food, heat, hydro, Insurance, etc., these expenses will always be there in one form or another.

The figure you come up with is what you lived on last year.

Many people are amazed to discover they lived on $30,000 or less in after-Tax-Income. This figure will of course very with your level of debt and income.

Your Government benefits--at maximum amount--will give you roughly $16,000 per year.

If you live on $30,000 per year in after-Tax-income. You need another $14,000 yearly in tax-free or after-tax-Income to maintain your life style in Retirement. Once you have eliminated all your debts.

Once you have established how much your after-tax-income is. You will have an idea what you need to do for retirement.

It’s a straightforward process using a Financial Plan to figure out how to recreate that after-Tax- income.

We constantly hear that we must do our “homework” when it comes to investments and investing, but it’s just as important to have some of those nagging questions about retirement answered.

Questions like: “Is the way I am saving going to impact my government benefits?”

You will always being able to “ballpark” many figures for retirement income, but quite often verifiable amounts are needed.

Some experts say you need 70% of your pre-retirement income to maintain lifestyle. Others suggest 40% will do --assuming you have eliminated debt!

One thing we have learned -- is generalized statements like this, are too simplistic and rarely apply to us as individuals.

You may use the retirement planning software and decide it is hopeless when it's not! The software only provides a set of guidelines.

To really calculate and understand your retirement issues speak with a qualified financial planner. Who will help you understand the steps you need to take today to reach your retirement goals in the future.

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