A Retirement Calculator Applet
This applet is from the book
Java by Cay Horstmann and
Gary Cornell, published by SunSoft Press/Prentice-Hall
To figure out if you are saving enough for your retirement, enter the
- The savings you have already accumulated and earmarked for
- Annual contributions
- The money you save every year for retirement, in constant dollars.
When you save the money, you need to adjust that amount for inflation in
future years. (For example, if you put in $9000 this year and anticipate
inflation of 5% per year, you need to save $9,450 next year.)
- Desired retirement income
- This is the annual income, in today's dollars, that you want to have
available at retirement from your investments. As a rule of thumb, it
should be at least 75% of your current income. However, this calculator
doesn't take into account social security income (which hopefully will
still be around when you retire) or employer contributions, so if you
expect income from those sources, reduce this figure accordingly.
- Your current age
- Your retirement age
- Usually 65
- The age you expect to reach
- An estimate for the inflation rate
- Historically about 5%
- An estimate for the investment return
- Historically up to 10% if you invest long-term in the stock market
Click the "Compute" button after entering all the values.
When you run this applet, the balance in your retirement account (in
current dollars) is displayed in the graph and the scrolling table. The
blue area of the graph is the pre-retirement saving phase. The green area
is the post-retirement withdrawal phase until the account runs out of
money, in which case it turns red.
When the red bars and the negative numbers appear, you don't have enough
money. Make one or more adjustments and click "Compute" again.
Some suggestions for adjustments:
- Save more.
- Retire later.
- Be more frugal in retirement.
- Die earlier.
- Be younger.
Disclaimer: I am not an investment specialist. Don't rely on
this applet for your retirement strategy!
The source for the applet.