What is the retirement?
The retirement is defined as a withdrawing from one’s occupation or position, especially reaching the particular age. After retirement, the person has sources of income that do not have to be earned by working. The retirement is only achieved if the person has enough savings, investment income, and pension to the living expenses. The person may retire at whatever age they want to but there are some rules and regulations for different countries. The standard retirement age is 60 to 70years of the person. The concept of retirement came into existence because of increased lifespan and the onset of government-sponsored retirement benefits when the social security was created.
Advantages and disadvantages of retirement:
Advantages of retirement:
- Stress reduction.
- Health benefits.
- Family involvement.
- A new lifestyle.
Disadvantages of retirement:
- Lack of personal interaction.
- Economic insecurity.
Common sources of retirement funds:
Social security: It is the most common source of retirement income and the retirees have different opinions on social security like it is the steady stream of payment, it is the major source of retirement income, it is the primary way of paying for retirement and the minor source of retirement income.
Retirement accounts: The fewer retirees use the retirement accounts as a major source of income. The most of the people are relying on the 401(K) as the main source of retirement income.
Pension: some people are saying that traditional pension payment is the source of their retirement income. And some people are expecting a steady stream of payments in the retirement.
Home equity: Most of the people are using the equity that had built up on the home to pay for retirements and others thinks that the home equity will give a retirement finance a boost.
Stocks: Some retirees get their income from individual stocks or stock mutual fund investments.
Saving accounts: Fewer people say the savings accounts or CD is they invest their retirement income. Others say it is FDIC.
The other sources are the part-time job, rent and royalties, and inheritance.
The components included in the retirement calculator are:
How much do you need to retire?
- Age: The person’s age
- Planned retirement age: At what age the person wants to retire.
- Life expectancy: The expected lifespan of the person.
- Expected social security income: The expected social security income.
- Other income after retirement: The other income the person gets after retirement.
- Average investment return: The average investment return made for retirement.
- Inflation rate: The inflation rate of the money
- Current income: The current income of the person.
- Income needed after retirement: The income the person wants get after retirement.
How to save for retirement:
- Retirement savings: The amount saved for retirement.
How much can you withdraw after retirement?
- Retirement savings today: The amount saved today for retirement.
- Annual contribution: The annual contribution to the retirement.
- Monthly contribution: The Monthly contribution to the retirement.
How long can money last?
- The amount a person has: The amount the person has at the time of retirement.
- Person plans to withdraw: The amount the person wants to withdraw.
This retirement calculator helps to plan the retirement. All the calculations in this calculator are easy to accurate.