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Retirement Planning Calculator - American FundsUse this calculator to find out how much money you might need in retirement and whether your current savings plan could get you to your goal. The calculator results will provide a chart that compares your projected savings with your retirement goal. You’ll then be able to try different scenarios to see how changes in your savings plan might affect your results. Calculator Tips
This information is for educational purposes only — it’s not intended to provide specific advice. We don't guarantee the accuracy of the tool and recommend consulting a financial adviser regarding your particular situation. What does AARP’s Retirement Calculator do?The AARP Retirement Calculator can provide you with a personalized snapshot of what your financial future might look like. Simply answer a few questions about your household status, salary and retirement savings, such as an IRA or 401(k). You can include information about supplemental retirement income (such as a pension or Social Security), consider how long you intend to work and think about your expected lifestyle as a retiree. The tool will help you determine the amount of money you’ll need to retire when — and how — you want. How much should I save for retirement?A rule of thumb is that you’ll need 10 times your income at retirement. If you make $100,000 at retirement, then, you’ll need $1 million in savings. But this is a very rough estimate. The AARP Retirement Calculator helps you refine that estimate. The tool bases its answer on three big questions: How long you need to save, how long you’ll need to spend your money and how much you’ll earn when on your money.
Save as much as you can. You can’t control how long you’ll live in retirement, or what your returns will be. But you can control how much you save. In the long run, that’s the biggest determinant of how much you will have when you retire. The more you can save, the more you’ll have when you retire. The AARP Retirement Calculator will help you find the best amount to save to reach your goal . Let’s say Emily, age 30, earns $40,000 a year and her boss, Ebenezer, gives 1 percent annual raises. Emily saves 1 percent of her salary because that’s all she can afford. Emily earns 5 percent on her money, and, of course, she gets no match on her 401(k) plan. By age 70, Emily will have $57,004 saved for retirement. But let’s say Tim, also age 30, works for Ebenezer’s kindly nephew, Fred, who starts him at $40,000 a year but gives a 3 percent annual raise each year. Also, Fred’s 401(k) plan matches 50 percent of Tim’s contribution, to a maximum of 6 percent. Inspired by this, Tim contributes 6 percent of his salary. By the time Tim retires, he’ll have $698,314 in his retirement account. When should I retire?It depends. The AARP Retirement Calculator will help you decide. If you plan on retiring early, however, you'll need a lot of money. In most cases, you can’t tap tax-deferred retirement plans without a 10 percent penalty until the year you turn 59 ½. (And you’ll owe taxes on your withdrawals at any age, unless you’re in a Roth IRA. ) You can’t get Medicare until you’re 65 , and your money will have to last much longer than someone who retires at that age. Here are other factors to consider : Social SecurityAlthough you can start collecting this benefit at 62, it will be reduced unless you retire at full retirement age, which is 67 for those born in 1960 or later. (Full retirement age is the age at which you qualify for 100 percent of the benefit calculated from your earnings history.) Your benefit increases by 8 percent each year you delay taking the benefit after full retirement age, until you turn age 70. Social Security benefits are adjusted annually for inflation. That’s a big plus — and one that makes waiting to collect worthwhile. Nevertheless, if you’re in poor health or have large savings, the time off from work may be worth missing the extra money from the Social Security Administration (SSA). You can use the AARP Retirement Calculator and the AARP Social Security Calculator to see how much you would get from Social Security by retiring at different ages. HealthYou may be planning to retire at 70, but your body may have other ideas. And if you decide to retire before 65, be sure to include the cost of private health insurance in your calculations. TaxesIf most of your savings are in tax-deferred savings accounts, such as a 401(k) or IRA, you’ll owe state and federal income taxes on the amount you withdraw. If your federal, state and local taxes are 30 percent, a $100 withdrawal will leave you with $70 after taxes. If you are getting Social Security benefits before full retirement age, the SSA could reduce your benefits. If you are receiving benefits and working in 2022 but not due to hit full retirement age until a later year, the earnings limit is $19,560. You lose $1 in benefits for every $2 earned over the cap. So if you have a part-time job that pays $25,000 a year ($5,440 over the limit ), Social Security will deduct $2,720 in benefits. Suppose you will reach full retirement age in 2022. In that case, the earnings limit is $51,960, with $1 in benefits withheld for every $3 earned over the limit. That applies until the date you hit full retirement age; past that, there is no benefit reduction, no matter how much you earn. In fact, the SSA increases your monthly benefit at that point , so that over time you recoup benefits you lost to the prior withholding. If you receive wages, earnings-limit calculations are based on your gross pay; if you’re self-employed, Social Security counts your net income only. All the information presented is for educational and resource purposes only. It is not intended to provide specific or investment advice. We don't guarantee the accuracy of the tool and suggest that you consult with your
advisor regarding your individual situation. Get your Retirement on Track with Tips from AceYourRetirement.org What is the average Social Security monthly payment for a retired married couple?Consider the Average Social Security Payment
The average Social Security benefit is $1,657 per month in January 2022. The maximum possible Social Security benefit for someone who retires at full retirement age is $3,345 in 2022.
What is the average Social Security benefit for a married couple?The typical senior couple consisting of a retired worker and a spouse, both of whom claim Social Security benefits, received about $2,739 per month as of April 2022. That amounts to an annual benefit of about $32,868 per year.
Can You Get retirement and Social Security together?Yes. There is nothing that precludes you from getting both a pension and Social Security benefits.
Can you collect 1/2 of spouse's Social Security and then your full amount?Can I collect Social Security spouse's benefits and my own retirement benefits? Yes.
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