If you need help with retirement planning, a tool that can be extremely useful in your calculations would be the retirement calculator.
These are preprogrammed calculators with formulas that use common questions whose answers are crucial in determining the relevant figures that indicate the amount you will need to save. Many nonprofit financial institutions can find them free on the Internet, while others require a purchase. Regardless, each of these calculators is different from each other, some require you to enter more details than others simpler.
So how do you find the right calculator to help you in your retirement planning? There are several things to look for in the calculator. The first thing would be that the calculator allows you to enter your expected retirement expenses for a variety of expenses, rather than a general approximation. The more detailed you are with your figures, the more accurate the results. You should also be able to enter a savings withdrawal variation instead of a specific number so that you can see the results of having a withdrawal more or less in the amount.
Apart from that, it would be good if the calculator can store your answers and results so you can easily test and compare the possibilities without having to start everything from scratch. Having the ability to enter different future economic scenarios and Social Security benefits, and what happens if the characteristics are also ideal in calculators.
Read reviews that other people have made of professional testimonials, forums and websites also help. Look at the pros and cons of each calculator, and reduce your options to those with minimal weaknesses. You could even try them on your own to see which ones may be missing or which ones may seem appropriate.
However, if you are not sure how the calculator works or what to look for, what you can do is ask a professional in the field for a reliable calculator. It is better to use the calculators they recommend because they would have tried the calculators before and eliminate those that they believe do not meet professional standards. In the meantime, you can seek your help to identify the figures that you must enter based on your individual financial situation, your habits, and other relevant variables.
Although it may seem that looking for a retirement calculator will need a lot of research and review, once you find the right one, you can avoid many difficulties when you need to reassess your planning over and over again in the future. And when that happens, you’ll know you won’t go bankrupt when you retire!
The estimate of your retirement pension and your top-up
You must contribute to a basic pension and a supplementary pension.
If you are employed in the private sector, to obtain your basic retirement calculation, you will need to take into account your average salary, based on your best 25 years of work. It is vital to consider that the fundamental pension is capped.
Your additional pension will be added to this basic pension. You and your employer contribute throughout your career to fuel it. You thus accumulate retirement points, the basis for calculating your additional retirement. Among managers, complimentary retirement often represents the major part of the global pension.
Additional retirement: individual initiatives
The retirement is synonymous with loss of income. To minimize compensating for this loss of income, it is advisable to opt for an additional retirement as soon as possible. Non-mandatory, these retirement savings systems are sometimes directly set up by the employer.
However, these additional income are very often decided on an individual basis. These are generally:
- Life insurance
- Stock market investments
- Rental investments
In a retirement calculation process, you will also be able to have a precise diagnosis made with a financial advisor as well as a balance sheet, to find the best avenues in terms of savings and investments.
Retirement supplementary old-age benefits
Reserved for approved medical biologists, the retirement for supplementary old-age benefits is calculated in points. The number of points allocated to you each year is partly linked to your flat-rate contribution and, secondly, to the part of your contribution proportional to your self-employed income.
The annual amount of a retirement pension for additional old-age benefits depends on the number of points validated during your activity. The value of the points depends on their vesting period (see table above).
A reduction of 1.25% is applied per missing quarter before the age of the full rate.
An increase of 10% is allocated (men and women) if you have raised at least three children.
The final calculation of the retirement consists of cumulating the rights obtained by the application of the different rules according to the insurance periods validated in the worship system.