Nest Egg Calculator

Step-by-Step Guide to Using the Nest Egg Calculator

The Nest Egg Calculator is a tool designed to help you plan for retirement by estimating how much you need to save. Follow these steps to make the most out of this calculator.

Step 1: Enter Your Basic Information

• Current Age: Enter your current age in the “Current Age” field. Ensure that your age is between 18 and 100.
• Retirement Age: Specify the age at which you plan to retire in the “Retirement Age” field. This age should be between 45 and 100.

Step 2: Financial Inputs

• Current Savings ($): Enter the total amount of your current savings. This should be a non-negative amount, and it is important to provide a detailed figure for accuracy.
• Monthly Contribution ($): Determine how much you can contribute monthly towards your retirement savings and input this figure. This should be a positive number in increments of 10.

Step 3: Expected Returns and Inflation

• Expected Annual Return (%): Input the percentage you expect to earn annually from your investments. This number should range between 0% and 30% for realistic projections.
• Expected Inflation Rate (%): Provide a figure for the expected inflation rate. A range between 0% and 20% is typically used for this input.

Step 4: Retirement Goals

• Desired Annual Retirement Income ($): Specify the annual income you wish to have during retirement. Ensure this is a realistic figure in increments of 1000.
• Life Expectancy: Enter your expected life expectancy, which should be between 50 and 120 years, to calculate how long your savings need to last.

Step 5: Review the Calculated Results

• Years Until Retirement: This result shows the number of years you have until you plan to retire.
• Total Contributions Until Retirement: The calculator will estimate how much you will have contributed by the time you reach your retirement age.
• Required Nest Egg: This is the total amount needed at retirement to achieve your desired annual retirement income.
• Projected Nest Egg at Retirement: Based on your inputs, the calculator will project how much you will have saved by the time you retire.
• Retirement Shortfall/Surplus: This figure will indicate whether you have a surplus or a shortfall based on the difference between your projected nest egg and required nest egg.
• Additional Monthly Savings Required: If there is a shortfall, the calculator will suggest the extra amount you need to save monthly to reach your retirement goals.

By following these steps and inputting accurate data, you’ll gain valuable insight into your retirement planning and what adjustments, if any, are needed to secure your desired lifestyle after retiring.