How can you calculate your pension for retirement?


Quick Answer

The Social Security Administration, the U.S. Department of Labor and Bankrate offer specialized web-based calculators that can help prospective retirees estimate their future pensions, according to the respective websites of the three organizations. In addition, prospective retirees can determine roughly how long their savings would last using U.S. News & World Report’s web-based Retirement Readiness Calculator, reports the organization’s online portal.

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Full Answer

Bankrate’s retirement planner calculator requires details like the percentage of annual income set aside for retirement, current household income, marital status, the expected age of retirement and an estimated future rate of inflation in order to give results, according to the organization’s website. For added clarity, the calculator plots its results on a graph and includes a determination of how long the estimated savings would last.

Unlike Bankrate’s more comprehensive offering, the Social Security Administration’s quick calculator, the U.S. Department of Labor’s lifetime income calculator and U.S. News & World Report’s retirement readiness calculator are much simpler and require fewer details to generate estimates, according to the respective websites of the three organizations. Unfortunately, this means that the results are less nuanced.

Apart from these web-based calculators, tax professionals, financial planners and other experts can also help prospective retirees analyze their retirement plans, explains U.S. News & World Report.

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