Using an early retirement calculator can help you determine whether you are on track for a comfortable retirement, or if you need to make some adjustments to your savings plans. It also helps you estimate how much money you will need to withdraw from your savings during your retirement, as well as how much you should expect to earn. You may also want to consider how selling your assets could affect your plan.
Estimate your income
Obtaining an estimate of your income for early retirement is not a trivial task. There are dozens of variables that will affect your estimation.
Obviously, the first step is to determine how much you’re going to need. Aside from your salary, you will need to consider how long you plan on living in retirement and what your other financial needs are. Aside from your main source of income, you may also need supplemental income such as investment returns and a part-time job.
Many people start calculating their estimate for early retirement by using their Social Security benefits as a starting point. These benefits are based on earnings from your past work history and are capped by federal law. You will also need to factor in your personal goals, including how long you plan to live in retirement and what you want to do with your time.
Aside from your Social Security benefits, you may also need to factor in your home mortgage and other recurring expenses. Depending on your age, you may need to …Using an Early Retirement Calculator Read More