Here’s the Retirement Savings Formula: Start with current income, subtract estimated Social Security benefits, and divide by 0.04. That’s the target number in today’s dollars.
Consequently, how do I calculate future value of retirement?
FV = PV*(1+(r * t))
- t = number of years.
- r = actual rate of return or interest (Your “actual rate of return” is your rate of return* minus the inflation rate**)
In respect to this, how do I calculate my retirement age? If your birth year is 1960 or after, your normal retirement age is 67. Anyone born between 1955 and 1959 has a normal retirement age between 66 and 67 – that is, 66 plus a certain number of months. For instance, if you were born in 1958, your full retirement age is 66 and eight months.