This application helps you calculate the capital needed to fund your retirement and the monthly savings required to reach that goal.
PARAMETERS TO ENTER:
1. Monthly Pension Needed (€):
The monthly amount you wish to receive during retirement
2. Retirement Period (years):
Number of years you expect to need this income
3. Annual Rate of Return (%):
Estimated annual return rate on your investments
4. Savings Period (years):
Number of years you plan to save before retirement
RESULTS:
- Capital Required:
Total capital to accumulate to fund your retirement
- Monthly Savings:
Amount to save each month during your savings period
- The graph shows the evolution of your capital during both accumulation
(savings) and decumulation (retirement) phases.
REMARKS:
- The rate of return is adjusted for inflation, thereby accounting for the
preservation of purchasing power.
- As a result, the constant monthly instalments implicitly include an
increase in line with the inflation rate.
- Consequently, if the average nominal rate of return you expect from your
investments is x%, and you estimate the average inflation rate to be y%,
then the rate of return to enter into the simulator is: r = (x − y)%
(an approximation that makes the calculation easier to do mentally).
- Financial investments for retirement savings are generally tax-exempt.
BUTTONS:
- Calculate: Run the simulation with the entered parameters
- Reset: Clear all entries and results
- Save graph: Save the current graph to a file
- Help: Display this help window