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Use Military Retirement Calculator To Forecast Savings
By Frank Watson

During the first few years of service, retirement income may not be high on everyone’s list of concerns. However, as their career in the military advances, figuring out retirement income with a military retirement calculator can help a person plan for the future. Retirement income for retired military is similar to civilian calculations, and they should include the same variables.

Start with your age, and the age at which you plan to retire. In the military, you can consider the number of years of service and know what percent of your pay you will receive upon retirement after an established number of years. Using these numbers in a military retirement calculator you can figure if you will have to find another job, or can stay home and relax. Most calculators do not include the final year you work when computing income. For example, if you plan to retire at age 65, the last year of earnings you should consider is for year 64.

When you consider income, do not forget to include your spouse’s income in the household totals and any amounts your married spouse has in their own retirement savings account. Individual retirement accounts should also be included in the military retirement calculator when calculating the current retirement savings amount.

Future Earnings Estimates Are Questionable

The earnings you realize from your current investments are questionable, at best and depending on where your savings are being held will play a significant role in its growth. A military retirement calculator can work with known numbers, but the variables in interest rates and potential for losses in market investments can make your savings plan volatile. While savings accounts are typically safe and consistent, their returns are also considerably lower that investments. Stock trading on the other hand can be rewarding, financially, they can also take a large chunk of your initial investment in a down market.

For post-retirement expenses, it is generally calculated that 90 percent of your last year’s salary will be what you will spend on living expenses. When using your military retirement calculator by knowing what your total savings should be upon retirement, and calculating how many years you can live on the balance, can help you determine how much more you need to save in order to survive. Knowing the amount of money you are looking to save can help you calculate the amount each month you have to put away, figuring in your expected growth rate.

Author Details:
Frank Watson retired from work a couple of years ago and now, in his spare time, writes articles, for various web sites about retirement and related topics.

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