A financial planning tool offered in association with a well-known personal finance advisor, this resource provides users with an estimate of the funds needed for a comfortable retirement. Typically, the user inputs current age, income, savings, and planned retirement age, along with assumptions about investment returns and inflation, to project a future nest egg. For example, an individual aged 35 with $50,000 in savings, earning $75,000 per year, who desires to retire at age 65 might utilize this tool to determine the savings rate required to achieve their retirement goals.
The importance of such a tool lies in its ability to provide a tangible target for individuals planning their financial future. It offers a simplified approach to complex financial calculations, encouraging proactive savings behavior. Historically, financial planning was often the domain of professionals, making access to retirement projections less accessible to the general public. This type of easily accessible online resource democratizes financial planning, allowing individuals to take ownership of their retirement strategy. A primary benefit is the potential for increased financial security in later life, stemming from early planning and consistent saving habits.
