The Department of Social Security provides its own calculator to help you start calculating your social security benefits.  Enter your date of birth and your current earnings, and the department will tell how much Social Security you’ll receive in retirement. Someone born in 1975, for example, and earning $80,000, can expect to receive $2,539 each month in today’s money if they retire at the age of 67.

That makes the savings planning a lot easier. Now instead of trying to save enough to generate $5,000 a month, you only need to save enough to generate about half that amount, or about $390,000. If you’re 45 and have already saved $50,000, that’s only a little more than $500 per month.

Making these kinds of calculations isn’t difficult. Calculating your social security benefits is essential, and the sooner you do it the better. It’s much easier to start saving a little in your 401(k) every month as early as possible than trying to catch up just before your retirement.

We also have put together an annuity calculator if that helps!

Chapters - 401k