Own Pension Plan?
How long you need to save money for your own pension plan? How many years you can cover your expenses? What amount should you collect to get a quicker retirement? Use our dynamic dashboard – fill out and see for yourself!
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Let’s check a few simulations:
You are a young 24-year-old person at the beginning of your career, without any savings, spending 2000 per month, but you have heard, that if you start saving early, even 100 per month, then you can save enough money for your retirement… Unfortunately not. Even with the 2% of interest per year, collected amount of 72 482 would be enough only for 3 years.
OK, you try to be better this time and save 500 per month, additionally, you found a higher interest rate: 2,5%. It’s much better, amount of 404 415 allows to live on your retirement longer than average life length, but you have to find a sponsor if you want to live a long life. We also assume, that you still spend only 2000 per month.
What if you start saving much later, for example as 40-year-old? You are certainly in the middle of your career, so let’s say you already have 20 000 of savings, but your expenses are probably higher, e.g: 5 000. In addition, there can be higher inflation that absorbs your savings (-1% of interest per year). What amount should you collect to get retired at age 65 and live up to age 83? The chart shows that it is at least: 5 000 per month.
OK! I invite you to analyze and build your own pension plan 🙂