The Boston College Center for Retirement Research always has wonderful posts on their blog. It’s great for someone like me, who’s working on a dissertation that focuses on retirement. I can get a quick synopsis of the current research coming out of the CRR. They always make their information useful for the general public too, and I want to share with you a recent post that highlighted a new tool for people planning for retirement. How do you know if you’re doing enough? Ask the calculator!
You can play around with the calculator here. I really liked the tool, and found it easy to use and visually appealing. I liked how the graphics instantly updated based on my changes. The calculator also took into account important information like what age I plan on retiring and what I expect to get from Social Security or my employer pension. The calculation gave me a good estimate of my monthly income in retirement because all my resources were accounted for. It also told me I’m not doing enough if I want to maintain my standard of living in retirement!
The best part was Step 3: Make a Plan. Unlike many of the other retirement income estimators I’ve seen online (which are often on the website of an investment company) this calculator helped me reach my retirement goals and come out with a plan for free! Nothing to sign up for or invest in. The site offered simple steps to increase my retirement income like asking me to consider spending less each month or retiring at 65 instead of 62. And the tool showed me exactly what will happen to my income if I take one or both of these steps. I came up with a plan that suited me and the site offered to help me develop an action plan for moving forward.
I encourage anyone who’s planning for retirement to give it a shot: Target Your Retirement