A Retirement Calculator Applet
This applet is from the book
Core Java by Gary Cornell and
Cay Horstmann, published by SunSoft Press/Prentice-Hall
To figure out if you are saving enough for your retirement,
enter the following:
- Savings
- The savings you have already accumulated and
earmarked for retirement.
- Annual contributions
- The money you save every year for
retirement, in constant dollars. When you save the money,
you need to adjust that amount for inflation in future years.
(For example, if you put in $9000 this year and anticipate
inflation of 5% per year, you need to save $9,450 next year.)
- Desired retirement income
- This is the annual income, in
today's dollars, that you want to have available at retirement
from your investments. As a rule of thumb, it should be at
least 75% of your current income. However, this calculator
doesn't take into account social security income (which
hopefully will still be around when you retire) or employer
contributions, so if you expect income from those sources,
reduce this figure accordingly.
- Your current age
-
- Your retirement age
- Usually 65
- The age you expect to reach
-
- An estimate for the inflation rate
- Historically about 5%
- An estimate for the investment return
- Historically up to
10% if you invest long-term in the stock market
Click the "Compute" button after entering all the values.
When you run this applet, the balance in your retirement
account (in current dollars) is displayed in the graph and
the scrolling table. The blue area of the graph is the
pre-retirement saving phase. The green area is the
post-retirement withdrawal phase until the account runs out
of money, in which case it turns red.
When the red bars and the negative numbers appear, you don't
have enough money. Make one or more adjustments and click
"Compute" again. Some suggestions for adjustments:
- Save more.
- Retire later.
- Be more frugal in retirement.
- Die earlier.
- Be younger.
Disclaimer: I am not an investment specialist. Don't
rely on this applet for your retirement strategy!
The source for the applet.