Retirement calculators?

[kkmcan]

Anyone know if those online retirement calculators are correct? I'm always interested in the numbers and seeing how we are doing but one calculator said that we have more than enough money to last til age 90 plus we'll have some huge 7 figure number left over. I like that calculator a lot!

Then I thought that can't be right and googled and found a bunch more. I started trying out all these different calculators and the results are all over the place. Some said yes, you have just enough. Some said you will run out of money at age 67, 74, etc and that we would need to save any additional $1000 a month starting now.

I don't get it. I'm putting in the same info. I'm leaving the box for Social Security unchecked as I don't want to rely on that money if it may not be there in 15-20 years.

Also I made sure that I used a calculator that included a space for pension as my dh is a firefighter and he has a pension plan.

Can anyone recommend a calculator or explain why some say we have lots of money and some say we don't have anywhere nearly enough??

Thanks!

 

[Gigi22]

Just a guess, but are some of the calculators linked to financial products? Could be a lurking sales pitch behind a few of them. Have you tried a pension calculator that is on your DH's employee benefits website? Also, a calculator linked to your financial institution is likely more reliable.

 

[powellrj]

You can do all the calculators you want, but lets face it, life is going to do what it wants. I never in a million years dreamed I would be retired at 53 because I became disabled and then had to become caregiver to my mother with dementia. I assumed I would work until my late 60's and have plenty of money in my 401k due to my rate of savings. Nope, life had other plans for me.

Take all of the calculators with a grain of salt and do the best you can.

 

[crisi]

For them to be correct, you need to understand both what assumptions are being made and what math is going on.

For instance, one that just asks your income and then makes an assumption that you'll need 80% of your pre retirement income is likely wrong - you may currently spend only 40% of your income and intend to continue to live frugally - or maybe you intend to spend like a drunken sailor on travel when you retire.

One that runs monte carlo simulations and gives you a bunch of scenarios is more likely to be "right"- but you'll end up with hundreds of answers (the binary one is "do I run out of money before I die - it will give you a statistical chance of running out of money.).

And few will account for tragedy - they assume you'll be able to continue to contribute until retirement age.