This calculator will show you the incredible amount you will earn over your lifetime and the dramatic impact of setting aside a percentage of those earnings in a tax deferred retirement account. Most people have trouble setting aside money at the end of each month to invest, because daily living expenses often consume most of their paychecks. Paying yourself first - before all other expenses such as housing, food, transportation, clothing and remaining bills - is an important step in ensuring that you will have adequate financial reserves for your retirement. Decide to save a set percentage of your salary each month and have that automatically deducted from your paycheck or bank account.
Current Age: Enter your age today.
Retirement Age: Enter the age at which you plan to retire. The maximum age is 70.
Annual Salary: Enter your current annual salary.
Salary Increases: Enter the percentage you expect your salary to increase each year.
Pay Yourself: Enter the percentage of your salary (before taxes or any deductions whatsoever) you will save for retirement.
Rate of Return: Enter the average annual rate of return of your retirement account. Ask your retirement account's managers for the historic rate of return over the life of the fund (hint: check their website).