The Kiplinger retirement calculator is another retirement calculator you can utilize to know how well you are planning for your retirement and what more you need to do to ensure you reach those retirement goals.
There are five main sections to the Kiplinger retirement calculator. The first section revolves around how much income you’ll need in your retirement. The Kiplinger retirement calculator will ask for the current gross income of you and your spouse (if applicable). It will also ask you how many years until you begin your retirement and what percentage of your current income that you want to replace.
The Kiplinger retirement calculator suggests 80% of your current income should be replaced in your retirement years, though it also suggests that this percentage should be higher if you plan on paying for your own health insurance during your retirement.
The second section revolves around how much retirement income you’ll receive from social security and pensions. The Kiplinger retirement calculator will ask you to input your monthly social security income. It suggests you consult the annual statement you receive from the Social Security Administration (SSA) or calculate it yourself at the SSA’s website in order to input an accurate amount.
The Kiplinger retirement calculator will then ask you to input your monthly retirement pension income. It suggests that you ask your benefits department for an estimate of how much that pension is worth in today’s dollars in order to input an accurate amount. The calculator then asks whether your pension includes annual cost of living adjustments (COLA) or not. It informs you that most government pensions do take COLA into account, while many private pensions do not.
The third section of the Kiplinger retirement calculator involves the amount of retirement savings you have already accumulated. It asks you to input the current value of your 401(k)’s, your IRA’s, and your other retirement accounts, as well as your spouse’s (if applicable). It also asks you to estimate the average return you will receive on your investments between the present time and the time of your retirement. It gives you the options of 6%, 8%, and 10%, with 6% being identified as “conservative” and 10% being identified as “aggressive.”
The fourth section of the Kiplinger retirement calculator asks you to determine how much money you’ll draw from your home equity. It mentions that you should only fill out this section if you plan to sell your home in retirement and move to another location. This should not be filled out if you plan on remaining in your current home for the rest of your life.
The Kiplinger retirement calculator asks you to determine the current market value of your home, the remaining mortgage you expect at the time of your retirement, and the cash you expect to use from the sale of your home in order to buy a new house.
The fifth and final section of the Kiplinger retirement calculator asks you to determine how large of a nest-egg you’ll need to comfortably live out your retirement years. It asks you to estimate how many years you will live in retirement, suggesting that you use 90 years old as a fair number to calculate the years you will live in retirement.
The Kiplinger retirement calculator also asks you to determine what percentage of your portfolio will be invested in stocks during your retirement. It gives you the options of 35%, 50%, and 65%, with 35% being identified as “conservative” and 65% being identified as “aggressive.” It also asks if you expect any other assets to be expected at the time of your retirement.
As you can see, to get the most benefit from Kiplinger’s retirement calculator in planning your retirement, you need to have thorough knowledge of your assets. As a result, the Kiplinger retirement calculator is best suited for those who have an advanced knowledge of their assets.