Calculate how much you can spend after retirement taking into account the savings you currently have and the contributions you make to them.

## Description

Easily calculate **how much you can widthdraw from your retirement savings**, taking into account the savings you currently have and the contributions you make to them.

With this tool you can quickly calculate what amount you could spend each month once you retire, taking into account what you save each year and how long you will need the funds.

The calculator determines the necessary funds taking into account the *retirement period*, which is determined by the difference between your retirement age and your life expectancy.

On the other hand, it is considered that the saved amounts generate a return in the form of interest that is accumulated to the savings.

Finally, the tool also takes into account the effect of inflation in order to calculate what would be, to date, the purchasing power of the pension received during the first year of retirement and during the last year.

## Example

Suppose you are 45 years old. We are going to retire with 65 and you expect to live until 80. You currently have accumulated savings of € 25,000. In addition, you contribute $ 100 each month and $ 1,000 more each year to said savings, pension plan or fund, with an annual return of 2%. Annual inflation is 1%. How much will you be able to spend each month when you retire?

Enter the following data: Current age: 45; Retirement Age: 65; Life expectancy: 80; Current savings: $25000; Monthly contribution: $100; Annual contribution: $1000; Interest: 2%; Inflation: 1%.

The result is the following: Monthly pension (amount that you can spend each month): $ 583.99. Amount saved (on the date of retirement): $ 90869.21. Although our pension is always the same, your purchasing power will decrease with inflation. As an example, in the year in which you retire, your $ 583.99 pension is equivalent to $ 478.61 now. In your last year of life (80) the pension will also be $ 583.99 but its purchasing power will be as current 412.25 €.

## Instructions

- Enter your current age, the age at which you intend to retire and your life expectancy.
- Indicate how much you have saved until now and how much you plan to continue saving each month and each year for your retirement.
- Enter the annual interest rate you receive for your savings and investments.
- Enter the percentage of future average annual inflation.
- The results are automatically shown indicating the pension that, at most, you can spend each month, as well as the total saved up to retirement. In addition, it shows the equivalent purchasing power that the pension will have in the first and last year of retirement and the savings in the year of retirement, taking into account the expected inflation.