Dubai: Did you know there are freely-available retirement calculators that can help you determine how much you need to save to reach your financial goals - all the while still ensuring a steady income throughout retirement?
To calculate how much you need to retire rich using a retirement calculator, follow these steps:
1. Set your retirement goal: Decide on your retirement target amount (e.g., Dh1 million) based on your desired lifestyle and expenses.
2. Provide current information: Enter key details such as your current age, existing savings, monthly contributions, and expected rate of return on investments.
3. Set retirement duration: Estimate how long you expect to live after retirement to determine how much you can withdraw annually. This helps the calculator calculate the duration your savings should last.
4. Calculate contributions: Based on your inputs, the calculator will show how much you need to save each month to reach your retirement goal by the set retirement age.
5. Check income projections: Once you meet your target, the calculator will estimate the annual withdrawal amount that can sustain you throughout retirement, ensuring a steady income.
Using a retirement calculator effectively helps you assess your financial plan, identify any gaps, and make adjustments to reach your desired retirement outcome. By inputting accurate details and updating periodically, you can stay on track to retire with the wealth you need for a comfortable lifestyle.
