Writing for The Squared Away Blog, one of my favorites, author Kim Blanton describes a new online tool from Vanguard to help near retirees and retirees figure out how long their savings will last. She explains the tool and reviews some of the limitations of online calculators. Read her blog:
https://squaredawayblog.bc.edu/squared-away/how-long-will-retirement-savings-last/
Keep in mind that the tool is designed to estimate how long personal savings will last and does not take into consideration any pensions or Social Security income. So when they ask how much do you spend each year, take these other sources of income into consideration.
Another factor is estimating how long you might live. The biggest risk for most retirees is living too long, the “longevity risk.” Unless you have reason to expect a shorter than average life span, figure on living to 90 or 100. Yes, really!
remember, none of this is set in stone and during retirement, you need to make annual adjustments to spending depending on investment returns and other factors.
Go directly to the calculator:
https://retirementplans.vanguard.com/VGApp/pe/pubeducation/calculators/RetirementNestEggCalc.jsf
Source: Financial Planning for Women
