Monday, April 12, 2021

The retirement calculator and your saving habits

A retirement calculator is a dutiful companion when it comes to helping one with one’s savings plan as it relates to one’s retirement. ‘Save for a rainy’ is a financial advice cliché that’s so overused that one would be tempted to walk around with a sign declaring ones saving plan – or lack thereof – for all to see just so one doesn’t have to hear that cliché one more time. Yet, there’s more than a grain of truth in the cliché.

One may weather life’s financial storms while one has a steady flow of income, but a financial storm can easy turn into a destructive tsunami when you’ve reached retirement age and wake up to the realisation that not only do you not have a steady income but your savings are not nearly enough to sustain you through your twilight years. This is where a retirement calculator comes in handy. As you put money away towards your retirement, since it calculates whether you’re saving enough in order to reach your retirement goals. So if you intend to retire at the age of fifty nine for instance, and wish to live on a certain amount of money monthly then the money you ought to be putting away to meet that goal can be determined by the retirement calculator.

The retirement calculator is only useful if you are actually actively working towards building your financial reserves of course. Because if you aren’t saving for retirement then a retirement calculator is as useful as a raincoat on a hot and dry summer’s day.