1. What Is This Retirement Calculator?

This calculator estimates how many years your retirement savings will last based on your current savings and annual withdrawal rate. It provides a simple projection without accounting for investment returns or inflation.

2. How Does The Calculator Work?

The calculator uses the basic retirement equation:

Where:

• \( Savings \) — Total retirement savings (currency)
• \( Annual\ Withdrawal \) — Amount withdrawn each year (currency/yr)
• \( Years \) — Number of years money will last (yr)

Explanation: This is a simplified calculation that assumes zero investment returns and no inflation. For more accurate projections, consider consulting a financial advisor.

3. Importance Of Retirement Planning

Details: Proper retirement planning helps ensure you don't outlive your savings. Understanding how long your money will last is crucial for making informed decisions about retirement age and spending.

4. Using The Calculator

Tips: Enter your total retirement savings and the amount you plan to withdraw each year. Both values must be positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: Why doesn't this calculator account for investment returns?
A: This provides a conservative baseline estimate. Actual duration may be longer with positive returns or shorter with negative returns.

Q2: What about inflation?
A: This calculator doesn't account for inflation. In reality, you may need to increase withdrawals over time to maintain purchasing power.

Q3: What's a safe withdrawal rate?
A: The 4% rule is common, but optimal rates depend on your age, assets, and market conditions.

Q4: Should I include Social Security/pensions?
A: This calculator focuses on savings. Consider other income sources separately in your overall retirement plan.

Q5: How accurate is this calculation?
A: It's a simple estimate. For comprehensive planning, consider taxes, unexpected expenses, and healthcare costs.