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Do You Have A Retirement Surplus™ or Retirement Deficit™?

Use this calculator to quickly determine if your current retirement savings will provide enough to meet your retirement spending needs.

Do You Have A Retirement Surplus™ or Retirement Deficit™? Definitions

Age at retirement
Enter your age at retirement. Our recommendation is to use age 65 (or less) even if you don't plan to retire until later. Over one-third of individuals at age 65 are not able to work due to physical or mental limitations (U.S. Department of Commerce) so you should be prepared just in case.
What you've saved for retirement
Enter how much money you've saved for retirement. Include 401(k)s, IRAs, annuities, portfolio assets and cash values of your life insurance policies, etc. Do not count any investments that are not earmarked for retirement. Do not count any expected return-on-investment (ROIs) between now and retirement; Do not count any expected inheritance(s). Then, add to this number how much you can realistically save between now and your retirement date, and any estimated net after-tax dollars you expect to receive from the sale of a business, real estate or any item of value that you plan to sell at-or-near your retirement date. Use very conservative after-tax estimates calculated using today's values, not anticipated future values. Again, do not count any expected ROIs between now and retirement. Why? Because we assume that your net ROI will equal the rate of inflation.
Annual spending in retirement
If you were to retire today, how much money on an annual basis before-taxes in today's dollars would you need to live comfortably? Use very conservative before-tax figures in today's dollars, not anticipated future dollars. You can subtract from this number any "guaranteed" lifetime income from Social Security, pensions, rents and other sources. Do not underestimate today's cost-of-living expenses and taxation. Leave some room for emergencies. It's always better to overestimate expenses today than face a cash-flow shortage in retirement.
Years to live in retirement
How many years do you expect to live beyond your retirement age? Healthy retirees today should be prepared to live to age 95 or even 100 or face running out of money. A 65-year-old couple today has a 60% chance that one or both individuals will live past age 90 (Stanford University).