Retirement Income Calculator

use a retirement income calculator in mid-lifeA retirement income calculator shows you what you can expect from your retirement income. It shows you how much your pension will be if you retire at any given time.

I was so thankful that my pension plan had an income calculator available! I was considering early retirement. I wanted to know when it would be best to retire based on financial considerations. My pension pay-outs do not increase at a steady rate. In one case, waiting one year would have given me $1000/month more. In another case, the difference was only $300/month.

A retirement income calculator cannot predict the rate of inflation. Nothing and no one can do that. What the calculator can do is tell you what your particular pension plan will give you. If your pension is indexed to the cost of living, the only other thing you have to be concerned about is increased costs, probably related to health care.

Retirement income calculators are plan specific, so you need to check with any pension provider to see if there is an online calculator available to you.

Government Pension Calculators

I've found three for government pensions.

US Social Security

British Government Pensions

Next Steps

Once you know what your pension will be, you still have other calculations to make. You need to calculate your anticipated costs. Those two numbers will help you to calculate what you need to save for a comfortable retirement. That's where a retirement savings calculator comes in.

Numbers are only part of the decision to retire. Above I said that I was planning early retirement. I expected to retire two years ago. When I realized how deep my emotional attachments to my job were, I decided to continue working while I work on letting go more gradually. There's a great little tool help with complex decisions. Read my review of ChooseIt! and check it out for yourself.