Fidelity Retirement Calculator

Fidelity Retirement Calculator

Your Retirement Outlook:

function calculateRetirement() { var currentAge = parseFloat(document.getElementById('currentAge').value); var retirementAge = parseFloat(document.getElementById('retirementAge').value); var currentSavings = parseFloat(document.getElementById('currentSavings').value); var annualContribution = parseFloat(document.getElementById('annualContribution').value); var preRetirementReturn = parseFloat(document.getElementById('preRetirementReturn').value) / 100; var postRetirementReturn = parseFloat(document.getElementById('postRetirementReturn').value) / 100; var annualExpenses = parseFloat(document.getElementById('annualExpenses').value); var inflationRate = parseFloat(document.getElementById('inflationRate').value) / 100; // Validate inputs if (isNaN(currentAge) || isNaN(retirementAge) || isNaN(currentSavings) || isNaN(annualContribution) || isNaN(preRetirementReturn) || isNaN(postRetirementReturn) || isNaN(annualExpenses) || isNaN(inflationRate) || currentAge <= 0 || retirementAge <= 0 || retirementAge <= currentAge || currentSavings < 0 || annualContribution < 0 || annualExpenses 0 && yearsInRetirement < maxRetirementYears) { yearsInRetirement++; // Calculate withdrawal for the current year, adjusted for inflation var withdrawalForYear = effectiveAnnualExpensesAtRetirement * Math.pow(1 + inflationRate, yearsInRetirement – 1); // Apply post-retirement return to the balance balance = balance * (1 + postRetirementReturn); // Subtract the withdrawal balance = balance – withdrawalForYear; // If balance goes negative, it means it didn't last the full year if (balance <= 0 && yearsInRetirement = maxRetirementYears) { yearsSavingsLastText = "Your savings are projected to last " + maxRetirementYears + "+ years."; shortfallSurplusText = "You are well-prepared for retirement!"; document.getElementById('shortfallSurplus').style.color = '#28a745'; // Green for surplus } else if (yearsInRetirement > 0) { yearsSavingsLastText = "Your savings are projected to last approximately " + yearsInRetirement + " years."; if (yearsInRetirement < targetRetirementDuration) { shortfallSurplusText = "Warning: Your savings may not last your entire retirement (" + targetRetirementDuration + " years). Consider increasing savings or reducing expenses."; document.getElementById('shortfallSurplus').style.color = '#d9534f'; // Red for shortfall } else { shortfallSurplusText = "Your savings are projected to last a reasonable duration."; document.getElementById('shortfallSurplus').style.color = '#28a745'; // Green for adequate } } else { yearsSavingsLastText = "Your savings are projected to last less than 1 year."; shortfallSurplusText = "Critical: Your current plan results in a significant retirement shortfall. Immediate action is recommended."; document.getElementById('shortfallSurplus').style.color = '#d9534f'; // Red for critical shortfall } document.getElementById('totalSavingsAtRetirement').innerHTML = "Estimated Savings at Retirement: $" + totalSavingsAtRetirementValue.toLocaleString(undefined, { minimumFractionDigits: 2, maximumFractionDigits: 2 }); document.getElementById('yearsSavingsLast').innerHTML = yearsSavingsLastText; document.getElementById('shortfallSurplus').innerHTML = shortfallSurplusText; }

Understanding Your Retirement Outlook with the Fidelity Retirement Calculator

Planning for retirement is one of the most critical financial goals for individuals. A robust retirement calculator, like this Fidelity-style tool, helps you visualize your financial future and make informed decisions today. It takes into account various factors to estimate how much you might have saved by retirement and, crucially, how long those savings could last.

Why Use a Retirement Calculator?

Retirement planning can feel overwhelming, but breaking it down into manageable steps with a calculator provides clarity. It allows you to:

• Set Realistic Goals: Understand if your current savings and contribution rates align with your desired retirement lifestyle.
• Identify Gaps: Pinpoint potential shortfalls early enough to adjust your strategy.
• Evaluate Scenarios: See the impact of increasing your savings, delaying retirement, or adjusting your investment returns.
• Gain Peace of Mind: Feel more confident about your financial future with a clear plan.

How This Calculator Works

This calculator uses a series of financial projections to estimate your retirement readiness. Here's a breakdown of the inputs and what they represent:

• Current Age: Your age today.
• Desired Retirement Age: The age at which you plan to stop working and begin drawing from your retirement savings.
• Current Retirement Savings ($): The total amount you have saved across all your retirement accounts (e.g., 401(k), IRA, brokerage accounts).
• Annual Savings Contribution ($): The total amount you plan to save each year until retirement.
• Expected Annual Return (Pre-Retirement, %): The average annual growth rate you anticipate your investments will achieve before you retire. This often includes dividends, interest, and capital gains.
• Expected Annual Return (Post-Retirement, %): The average annual growth rate you anticipate your investments will achieve while you are drawing income from them during retirement. This is often a more conservative estimate than pre-retirement returns.
• Desired Annual Retirement Expenses ($): The amount of money you expect to spend annually in retirement to maintain your desired lifestyle.
• Expected Annual Inflation Rate (%): The rate at which the cost of goods and services is expected to increase each year. This is crucial for understanding the future purchasing power of your money.

Interpreting Your Results

The calculator provides two key outputs:

• Estimated Savings at Retirement: This is the projected total value of your retirement portfolio when you reach your desired retirement age, accounting for your current savings, future contributions, and pre-retirement investment growth.
• Years Your Savings Are Projected to Last: This is a critical metric. It estimates how many years your accumulated savings will support your desired annual expenses, considering post-retirement investment returns and the impact of inflation on your spending needs.
• Shortfall/Surplus Indicator: This message will highlight if your savings are projected to last a sufficient duration (e.g., 30 years is a common benchmark) or if you might face a shortfall, prompting you to re-evaluate your plan.

Example Scenario:

Let's consider a hypothetical individual:

• Current Age: 30
• Desired Retirement Age: 65
• Current Retirement Savings: $50,000
• Annual Savings Contribution: $10,000
• Expected Annual Return (Pre-Retirement): 7%
• Expected Annual Return (Post-Retirement): 4%
• Desired Annual Retirement Expenses: $60,000
• Expected Annual Inflation Rate: 3%

Based on these inputs, the calculator would project their total savings at retirement and how many years those savings would last, adjusted for inflation and continued investment growth during retirement. If the savings last for, say, 20 years, but they expect to live for 30 years in retirement, it signals a need to increase contributions or adjust expectations.

Important Considerations:

This calculator provides estimates based on the data you provide. Actual results may vary due to market fluctuations, changes in inflation, unexpected expenses, and personal circumstances. It's a powerful planning tool but should not be considered financial advice. For personalized guidance, consult with a qualified financial advisor.