Retirement Savings Calculator, think of the future

T his article pins down how the retirement saving calculator functions and the factors that are considered in making the calculations. The retirement savings calculator provides detailed information about how much should an individual contribute towards a retirement plan. This will enable the contributor to plan appropriately on how to attain his retirement goal or plan. The retirement savings calculator does not subject the retirement income to taxes and the total amount contributed will be determined by the periodical amount contributed, how long an individual lives and the investments rate of return. For the retirement savings calculator, the amount an individual plans to have for retirement is a function of the present gross income, the years or period remaining to start retirement and the current income percentage the individual wants to replace. The calculator assumes that for spouses the retirement year is the same for both. The retirement savings calculator also takes into consideration the amount of income to be received for retirement package from the pension schemes and also social security schemes. The retirement savings calculator takes into account the funds the contributor is expecting to receive from home equity if the individual is planning to sell his house and move to another place after retiring. In the case of home equity, the calculator will consider the present market price of the house, the price of the other home the individual is planning to purchase after the sale and the mortgage remaining after retirement. The retirement savings calculator also considers how long the individual expect to live after retiring and the amount of additional assets that he receives at retirement. The retirement saving calculator enables individuals to make the appropriate decisions on how to save for the future and also to make improvements on how to save the appropriate amounts. The calculator assumes that, individual who expect to live for several years after the retirement year will contribute more savings towards their retirement scheme.