Retirement is a crucial life event that requires careful planning and execution. The right retirement planning tools can make a big difference in ensuring a comfortable and secure retirement.
Let's face it, figuring out how much money you need to retire comfortably can be daunting. There are so many variables to consider, from inflation and healthcare costs to the stock market and interest rates. And if you're like most people, you probably don't have a clue where to start.
That's where retirement planning tools come in. These tools can help you figure out how much money you'll need to retire, when you can retire, and what kind of lifestyle you can expect in retirement.
Here are six of the best retirement planning tools:
Best Retirement Planning Tools
Getting on the best retirement plan can take some research. It can be even trickier if you are self-employed or have a specific age in mind.
Thankfully we made things easier. Whether you think you are ready to retire early or just want to make sure you're on track — these tools can help.
1. Empower Online Retirement Planner
Empower is a free online tool that can help you track your investments, expenses, and progress toward retirement. It's a great way to get a bird's eye view of your financial situation and make sure you're on track.
Should you save for retirement or a home? Empower can help you with all of your questions. Once all your financial accounts are synced up, Empower will give you a clear picture of your net worth, asset allocation, and investment performance. It also includes powerful retirement planning tools, such as a retirement calculator and retirement planner.
From there, you can set up goals and create a plan to get there. For example, you might want to retire at age 60 with a nest egg of $1 million. Empower will help you figure out how much you need to save each month to reach that goal.
Empower makes achieving financial freedom easy with retirement plans, investment management, and personalized tools. Get started with their free Personal Dashboard, which provides valuable insights into your financial health and access to powerful tools. For those looking for more, Empower also offers expert investment management services to help you grow your wealth. Open a free account today and take control of your financial future.
2. Boldin (Formely NewRetirement): Retirement Calculator and Retirement Planning
Boldin (formerly NewRetirement) works with you conversationally to create a custom, comprehensive, and long-term financial plan and it’s easy to get started.
Boldin’s financial tools help you feel more confident about your wealth and what choices you’ve made for retirement. You can easily run hypothetical scenarios and tweak settings here and there to find the best possible solution for you.
For instance, Boldin allows you to budget with 75 categories, adjust your income level, review your investments, and calculate the impact your mortgage has on your retirement. Boldin will also calculate your Required Minimum Distributions (RMDs) and show you their effect on taxes.
With Boldin, you can also review your Monte Carlo analysis and Coach alerts. For a free financial planning tool to prepare you for retirement, it’s complete with a myriad of tools you’ll probably never exhaust. You can learn more in our Boldin review.
Looking for an easy-to-use retirement planner? The free plan includes a calculator and score to help you plan for the future. For more in-depth analysis and guidance, consider the $120 annual premium plan. It offers detailed reports, improvement suggestions, tax modeling, and other useful tools to help you achieve your financial goals. Whether you're starting out or optimizing your retirement strategy, this planner can help.
3. Vanguard Retirement Nest Egg Calculator
Vanguard's Retirement Nest Egg Calculator is another great free tool for those who want to get a better idea of how much they need to save for retirement.
Unlike other retirement calculators, Vanguard's calculator lets you input different scenarios, such as how many years your savings will last, what is your savings balance today, and how much do you spend each year? This allows you to see how those changes would impact your retirement plan.
Vanguard uses a Monte Carlo simulation which gives you a more realistic assessment of how the future may unfold by looking at a wide variety of potential market scenarios that take fluctuating market returns into account.
4. Betterment Retirement Savings Calculator
Betterment offers goal-oriented tools and helpful tax strategies that should appeal to investors of all types. It also offers a retirement savings calculator similar to Empower.
However, Betterment's calculator is a bit more user-friendly. All you need to do is sync up all your financial accounts and it will give you a personalized retirement plan.
This will be based on what you want retirement to look like, Betterment will estimate the total amount of money you may need and give guidance on how much to save.
You can also Make adjustments to your plan as life changes. And if you need extra guidance, Betterment's financial experts are on hand to help for an added cost.
Betterment will also automatically rebalance your portfolio to keep you on track and help you reach your retirement goals.
Since Betterment is a leading robo-advisor, they charge 0.25% per year for their service. This is a small price to pay for the convenience and peace of mind that comes with having a retirement plan.
5. Fidelity Retirement Score
Fidelity's Retirement Score is another great tool for those who want to get an estimate of how much they need to save for retirement.
Similar to Vanguard, Fidelity's calculator uses a Monte Carlo simulation to give you a more realistic assessment of your retirement prospects.
Fidelity's calculator is unique in that it not only takes into account your current financial situation but also factors in your lifestyle and health. This gives you a more holistic view of your retirement prospects.
After inputting all your information, Fidelity will give you a score on how prepared you are for retirement and provide guidance on what you need to do to get on track.
Fidelity is a large investment company with a wide array of products and services. As such, their retirement calculator is one of the most comprehensive and user-friendly tools out there.
6. Future Capital
Future Capital offers a suite of financial tools take the heavy lifting out of planning and investing for retirement by automating the day-to-day work of managing your retirement accounts.
Future Capital does an initial retirement review and its advisory services are complimentary. This includes access to its retirement counselors and a full analysis of where you stand today in planning for retirement.
If you sign up to have Future Capital manage your account, you will receive active account management, professional investment research, counseling and advice that is typically reserved for larger institutional investors.
With its management services, they research the mutual funds available through your retirement plan and invest in a portfolio appropriate for your age within the strategy you select. They do the ongoing research of those mutual funds and make any changes needed to the portfolio, including adjustments for plan fund lineup changes and regular rebalancing.
Subscriptions start at $9 monthly for the first $50k, and then $20 for each additional $50k managed.
7. Blooom Retirement Health Check
Editor's note: Blooom has shut down its services as of November 2022. Existing customers can access their accounts by logging into their institution's site.
Blooom is a financial advisor that specializes in retirement planning. Their Retirement Health Check is a free tool that will help you understand where you stand financially and what you need to do to get on track for retirement.
All you need to do is connect your 401k account and Blooom will analyze it for fees, asset allocation, and other factors. From there, they will give you a personalized report on what you need to do to improve your retirement prospects.
Blooom does not manage your retirement account for you but they will provide guidance and advice on how you can optimize it for retirement.
There is no cost to use Blooom's Retirement Health Check but there are fees associated with their other services.
Depending on which types of IRAs you have, it's worthwhile to see how your retirement accounts stack up with a free account analysis.
FAQs
There is no definitive answer to this question as it depends on your individual needs and circumstances. However, some of the best retirement calculators include Vanguard's Retirement Nest Egg Calculator, Betterment's Retirement Savings Calculator, and Fidelity's Retirement Score.
There are a number of different ways to calculate your retirement savings. Some of the most popular methods include using a retirement calculator or estimating your expenses in retirement.
Age 50 is generally considered to be the halfway point to retirement. As such, you should aim to have at least half of the total amount you need for retirement saved by this age.
There is no definitive answer to this question as it depends on your individual needs and circumstances. However, a general rule of thumb is that you will need enough money to cover your essential expenses in retirement.
The 4% rule is a guideline that suggests you can withdraw 4% of your portfolio each year in retirement without running out of money. This rule is based on historical data and market conditions and is not guaranteed.
Ready to Plan for Retirement?
If you're looking for help planning for retirement, there are a number of resources available to you. Empower's financial advisors can also provide guidance on how to save for retirement and how much money you will need to retire comfortably, build generational wealth, IRA rollover bonuses, or even complex tax questions like estate planning tips.
Empower makes achieving financial freedom easy with retirement plans, investment management, and personalized tools. Get started with their free Personal Dashboard, which provides valuable insights into your financial health and access to powerful tools. For those looking for more, Empower also offers expert investment management services to help you grow your wealth. Open a free account today and take control of your financial future.
There are also a number of online retirement calculators that can help you estimate how much money you need to save. Some of the best retirement calculators include Vanguard's Retirement Nest Egg Calculator, Betterment's Retirement Savings Calculator, and Fidelity's Retirement Score.
No matter what method you use to calculate your retirement savings, the most important thing is to start saving early and often. The sooner you start saving, the more time your money has to grow.
Need to roll over a 401K? Learn how to do so in our Capitalize Review: 401(k) Rollovers Made Easy
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