The Schwab retirement calculator is another option you have to determine your current financial standing in regards to your retirement goals and what contributions you will have to make over the coming years in order to meet those retirement goals.
You can make use of the Schwab retirement calculator at the following link:
The Schwab retirement calculator first asks you to identify your retirement goals. It does this by asking you what your current age is, at what age you plan to retire, and what type of investment style you prefer when it comes to your investments. It breaks down investment style into five specific styles:
- Moderately Conservative
- Moderately Aggressive
The Schwab retirement calculator describes each investment style in detail, including a pop-up window you can access by clicking onto the little question mark next to the investment style question. The pop-up window will identify the average annual rates of return for each type of investment style to help you identify what type of investment style most defines you.
The Schwab retirement calculator will then ask you to outline your savings and spending estimates. It will ask you to identify your current annual household income, how much you have currently saved for retirement, and how much you plan to save for retirement each year.
The Schwab retirement calculator will also ask you how much Social Security income you expect to receive during your retirement, including what age you expect Social Security payments to begin and what you expect your annual Social Security payments to be. It will also ask you to identify how much additional income you expect to have each year that is not Social Security payments or other income derived from investment portfolios.
Finally, the Schwab retirement calculator will ask you to estimate how much money you plan to spend each year in retirement. You can enter this in as either a dollar amount or as a percentage of your total retirement income.
As you can see, the Schwab retirement calculator works best for those people who have a pretty solid idea of how much they plan to spend in retirement. This is how the retirement calculator will determine whether a person is saving enough for his/her retirement or not. Therefore, the Schwab retirement calculator is best used by those who have a fairly detailed understanding of their retirement planning.