How Much Must I Save For Retirement

Input
Variables
Inflation expected 2.0%
Salary growth rate 2.0%
Investment returns 8.0% (after tax)
Salary now $ 35,000
Savings % of salary at start 15.0% $5,250
Yearly increase in savings rate 0.0% See warning below
Portfolio value now $ -
Savings Objective (today's $) $ 500,000
This portfolio must fund 75% of my retirement spending

Results
Years to Retirement 34
Withdrawal rate to cover spending 3.9% $43,748
Portfolio at that age (nominal $) $ 1,108,434
Salary at that age (nominal $) $ 68,624
Spending at that age (nominal $) $ 58,330 = salary less savings

Future Value of Savings Portfolio at Salary Savings # Year to Spend

$ 500,000.00 BOY End of Year Rate % Retirement

$ 500,000 $ - $ 35,000 15.0% 0 29,750

510,000 5,250 5,670 35,700 15.0% 1 30,345
520,200 5,355 11,907 36,414 15.0% 2 30,952
530,604 5,462 18,759 37,142 15.0% 3 31,571
541,216 5,571 26,276 37,885 15.0% 4 32,202
552,040 5,683 34,516 38,643 15.0% 5 32,846
563,081 5,796 43,537 39,416 15.0% 6 33,503
574,343 5,912 53,406 40,204 15.0% 7 34,173
585,830 6,031 64,191 41,008 15.0% 8 34,857
597,546 6,151 75,970 41,828 15.0% 9 35,554
609,497 6,274 88,823 42,665 15.0% 10 36,265
621,687 6,400 102,841 43,518 15.0% 11 36,990
634,121 6,528 118,118 44,388 15.0% 12 37,730
646,803 6,658 134,759 45,276 15.0% 13 38,485
659,739 6,791 152,874 46,182 15.0% 14 39,254
672,934 6,927 172,585 47,105 15.0% 15 40,040
686,393 7,066 194,023 48,047 15.0% 16 40,840
700,121 7,207 217,329 49,008 15.0% 17 41,657
714,123 7,351 242,655 49,989 15.0% 18 42,490
728,406 7,498 270,165 50,988 15.0% 19 43,340
742,974 7,648 300,038 52,008 15.0% 20 44,207
 757,833 7,801 332,467 53,048 15.0% 21 45,091
772,990 7,957 367,658 54,109 15.0% 22 45,993
788,450 8,116 405,836 55,191 15.0% 23 46,913
804,219 8,279 447,244 56,295 15.0% 24 47,851
820,303 8,444 492,144 57,421 15.0% 25 48,808
836,709 8,613 540,817 58,570 15.0% 26 49,784
853,443 8,785 593,571 59,741 15.0% 27 50,780
870,512 8,961 650,735 60,936 15.0% 28 51,795
887,922 9,140 712,665 62,155 15.0% 29 52,831
905,681 9,323 779,747 63,398 15.0% 30 53,888
923,794 9,510 852,398 64,666 15.0% 31 54,966
942,270 9,700 931,065 65,959 15.0% 32 56,065
961,116 9,894 1,016,236 67,278 15.0% 33 57,186
980,338 10,092 1,108,434 68,624 15.0% 34 58,330
999,945 10,294 1,208,225 69,996 15.0% 35 59,497
1,019,944 10,499 1,316,223 71,396 15.0% 36 60,687
1,040,343 10,709 1,433,087 72,824 15.0% 37 61,900
1,061,149 10,924 1,559,531 74,280 15.0% 38 63,138
1,082,372 11,142 1,696,327 75,766 15.0% 39 64,401
1,104,020 11,365 1,844,308 77,281 15.0% 40 65,689
1,126,100 11,592 2,004,372 78,827 15.0% 41 67,003
1,148,622 11,824 2,177,491 80,404 15.0% 42 68,343
1,171,595 12,061 2,364,716 82,012 15.0% 43 69,710
1,195,027 12,302 2,567,179 83,652 15.0% 44 71,104
1,218,927 12,548 2,786,105 85,325 15.0% 45 72,526
1,243,306 12,799 3,022,816 87,031 15.0% 46 73,977
1,268,172 13,055 3,278,741 88,772 15.0% 47 75,456
1,293,535 13,316 3,555,421 90,547 15.0% 48 76,965
1,319,406 13,582 3,854,523 92,358 15.0% 49 78,505
1,345,794 13,854 4,177,847 94,206 15.0% 50 80,075
1,372,710 14,131 4,527,336 96,090 15.0% 51 81,676
1,400,164 14,413 4,905,090 98,011 15.0% 52 83,310
1,428,167 14,702 5,313,375 99,972 15.0% 53 84,976
1,456,731 14,996 5,754,640 101,971 15.0% 54 86,675
1,485,865 15,296 6,231,531 104,011 15.0% 55 88,409
1,515,583 15,602 6,746,903 106,091 15.0% 56 90,177
1,545,894 15,914 7,303,842 108,213 15.0% 57 91,981
1,576,812 16,232 7,905,680 110,377 15.0% 58 93,820
1,608,348 16,557 8,556,015 112,584 15.0% 59 95,697
1,640,515 16,888 9,258,735 114,836 15.0% 60 97,611
1,673,326 17,225 10,018,037 117,133 15.0% 61 99,563
1,706,792 17,570 10,838,456 119,475 15.0% 62 101,554
1,740,928 17,921 11,724,887 121,865 15.0% 63 103,585
1,775,747 18,280 12,682,620 124,302 15.0% 64 105,657
1,811,262 18,645 13,717,367 126,788 15.0% 65 107,770
1,847,487 19,018 14,835,296 129,324 15.0% 66 109,925
1,884,437 19,399 16,043,070 131,911 15.0% 67
 To compare the effect of delaying the start of saving, you must do more than
just play with the 'savings %' until the 'Years to Retirement' equal the shorter time.
For example the default inputs have 15% savings of a $35,000 salary taking 34 years
to accumulate $1M. If you delay savings for 10 years you must do it in 24 years.

* Before changing any variables, look down at the salary in 10 years =

$51,809. This will become the input for your 'Salary Now' variable.

* Before changing any variables, look down at the future value of the $1,000,000
savings objective. This $1,218,994 will become the new savings objective.

* Now make those two input changes. Then play with the variable for 'Savings %'
until the result shows it takes 24 years. Saving the same $$ will now require 25% of wages.

Warning ! Review this column. Any decrease in spending must be

explained. Was the input CellD10 too high?
Incr
Spend

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2% http://www.retailinvestor.org/retire.html
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king 34 years

quire 25% of wages.