Frequently Asked Questions

FAQ

1. How accurate is this retirement calculator?

Our calculator provides a general estimate based on the information you provide. However, it's important to remember that it uses simplified models and assumptions. For more accurate and personalized advice, consult with a financial professional.

2. What factors are not considered in this calculator?

This calculator doesn't account for factors such as taxes, market volatility, changes in spending patterns, unexpected life events, or changes in government policies. These factors can significantly impact your retirement planning.

3. How often should I update my retirement calculations?

It's a good idea to review and update your retirement calculations at least once a year or whenever you experience significant life changes such as job changes, major expenses, or shifts in your financial goals.

4. What if the calculator shows my plan is not feasible?

If your plan is shown as not feasible, consider adjusting factors such as increasing your savings rate, reducing expected expenses, delaying retirement, or exploring ways to increase your income. Remember, small changes can have a big impact over time.

5. How does inflation affect my retirement savings?

Inflation reduces the purchasing power of your money over time. Our calculator factors in your expected inflation rate to give you a more realistic view of your future expenses and the value of your savings.

6. What is the difference between savings and investments in this calculator?

In this calculator, savings typically refer to lower-risk, more liquid assets like savings accounts or CDs. Investments usually refer to higher-risk, potentially higher-return assets like stocks or mutual funds. The expected rates of return for each should reflect this difference.

7. How are Social Security benefits calculated?

This calculator doesn't compute Social Security benefits. You need to input your expected monthly Social Security income. For a more accurate estimate of your benefits, visit the official Social Security Administration website.

8. Can I include other sources of retirement income?

Currently, the calculator focuses on savings, investments, 401(k), and Social Security. For a more comprehensive view, you might need to adjust your inputs to account for other income sources.