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A Quick Calculation for a Simplified Retirement Estimate

Use this for a fast starting point in today's dollars.

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What this calculator does This is a quick "where do I stand today" check. It answers a simple question: if you retired today with what you have, would you have enough? It uses today's dollars and does not include future contributions, growth on your current savings, or rising prices over time.

Step 1 ยท Retirement Number 1

Annual Retirement Spending Estimate

Start with your current gross annual household income (before taxes and deductions) and multiply by 0.8. Many retirement planning rules of thumb use a broad replacement-rate range, often around 70 percent to 80 percent, as a quick starting estimate. Actual replacement needs vary by household and by how replacement rates are measured, so treat this as a starting point rather than a guarantee.

$
Income ร— 0.8 โ€”

Step 2

Annual Income From Other Sources

Add your estimated annual Social Security and any pensions or other predictable income sources.

$

Step 3

Annual Income Needed From Savings

Spending estimate โˆ’ Other income โ€”

Step 4 ยท Retirement Number 2

Retirement Savings Goal

Income needed from savings ร— 25. This is a simplified planning shortcut tied to a 4 percent starting withdrawal framework; it is not a guarantee.

Your Retirement Savings Goal

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Step 5 ยท Quick "Today" Check

Today's Savings Gap

Subtract your current retirement savings from your retirement savings goal.

$

Today's Savings Gap

$0

Coach's Note This savings gap is a snapshot based on today's assumptions using simplified inputs. To refine your numbers, adjust for inflation, calculate your projected savings at retirement, and determine the monthly contribution needed to close your gap, continue to the Six-Step Method. If you have many years until retirement or a healthy amount already saved, the Six-Step Method may show a very different picture because it looks at where you will actually be when you retire.

For educational purposes only. This calculator is not a substitute for personalized financial, tax, legal, or investment advice. Consult qualified professionals before making decisions based on your specific circumstances.

Your Numbers, As of Today

A quick check is a great place to start. If your current savings already cover your goal in today's dollars, that is a strong foundation worth celebrating, and you can keep building. If you see a gap, that is not a verdict. It is your first piece of clear information about where you stand today. For a complete picture that adjusts for rising prices, projects your savings forward, and gives you a monthly savings target, continue to the Six-Step Method. Either result is a starting point you can build on.

~Lynn