Retirement Calculator Spreadsheet
The Retirement Calculator spreadsheet is a spreadsheet download that allows you to forecast your retirement outcome and thereby adjust your savings pattern in order to achieve the retirement you desire.
Once you have the main inputs captured, you will be able to play with the key inputs to see what you need to do to allow you to comfortably retire. Typically this would involve changing your retirement age or the amount of current income you put into savings and investments.
To try it out visit the on-line equivalent Retirement calculator at ‘View the Retirement Calculator‘
Instructions for using the Retirement Calculator (online or download)
To complete the spreadsheet fill in the light blue cells (if you are not sure what is required, look lower down for instructions). Look at the summarized results and scroll across to see the detailed calculations. Watch what happens when you change some of the key inputs and compare the results. Inputs that are useful to vary are your planned retirement age and the percentage of income that goes into savings.
Legend to the retirement inputs
- Annual Income- The amount of money you currently earn PER YEAR after tax.
- Money already saved at current age- The amount of money you have already saved. Do not include the house you live in or any other must have assets (e.g. cars). Include investments only
- Inflation - The inflation percentage in your country. Do a search in Google if you are unsure (search term could be “inflation” followed by your countries name). We have included a default inflation percentage of 5% but change it for your country
- Real return over inflation- An economic measure. We would enter 5%. Do another search for your countries real return.
- Current Age - Your current age. Roundup if you are close to your next birthday.
- Age of retirement - The age at which you are planning to go on retirement. Try your ideal retirement age and then change it to see the effect.
- Age of death - Not nice to think about but it is critical. Start on 100 as a worst (or is it best) scenario.
- Percent of working income required in retirement- Most people need less money when going on retirement. Try and work it out but 80% seems to be the norm. If you want it all then enter 100%.
- Percent of annual income saved- What percentage of your current annual income are you saving annually? Once you have entered the real number, change this number to see how much you need to save in order to retire comfortably.
Look at the results to see whether you will have enough saved for your retirement. If you are short, increase your retirement age and/ or the savings % until the savings are adequate.
Retirement Planning Tips
Some general tips about saving and planning for retirement.
Firstly, it is critical that you know what is required. The spreadsheet is a high level view and cannot be your only tool. Get your investment advisor to perform a more detailed calculation.
Secondly, once you know what is required, make a plan. Get investment advice and make sure that you are putting enough away in the correct investment products. Do not deviate from this plan and make sure that as your income increases, your saving does to!
Thirdly, you should never be in a position to just walk into a shop and buy something. Force yourself to always think whether you actually need it/ can afford it. The best way to achieve this is to work out a budget for yourself and anything left over is taken out of your account into savings AT THE BEGINNING OF THE MONTH!
That way the temptation is gone and any deviation from your budget will need careful consideration.
Stick to this plan and let the power of compounding investment returns make sure you retire with enough money to maintain your lifestyle.