In recognition of National Retirement Security Week (October 16th – 22nd), the Employee Benefit Research Institute (EBRI) today announced the launch of a revamped Ballpark E$timate® calculator to help individuals estimate their retirement savings needs and future spending.
The non-profit, independent, and unbiased resource organization Employee Benefit Research Institute (EBRI), is well known to provide the most authoritative and objective information about critical issues relating to employee benefit programs in the United States.
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The Ballpark E$timate, which was originally launched as part of the EBRI Emmy award-winning “Choose to Save” campaign, has been redesigned to better help people connect with their future retired selves – and be more likely to engage and take steps to improve retirement outcomes. The new Ballpark E$timate prompts users to consider their current retirement savings situation before imagining what their retirement might look like. The tool categorizes users based on an analysis of the Health and Retirement Study, much like an online personality-type quiz would, providing insight into their potential retirement lifestyle.
“The Ballpark E$timate is the first tool of its kind to actually show people how they are likely to spend their money in retirement and to consider whether that’s the retirement they aspire to,” said Lori Lucas, president, and CEO, EBRI. “The goal is to galvanize people to better plan for their future.”
The Ballpark E$timate is a two-page worksheet that helps users quickly determine how much they need to save for a comfortable retirement. It simplifies complex issues such as projected Social Security benefits and earnings assumptions on savings by translating them into simple language and mathematics.
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The Employee Benefit Research Institute thanked the RRF Foundation on Aging for its assistance with this project, as well as members of EBRI’s Retirement Security Research Center for their contributions to this important initiative.
“Our organization is honored to make EBRI’s launch of the new Ballpark E$timate tool possible. The RRF Foundation for Aging is committed to improving the quality of life for older people. With the release of Ballpark E$timate, we are proud to help EBRI create a bridge to a better retirement for all workers,” said Mary O’Donnell, president, RRF Foundation for Aging.
Interestingly, the Employee Benefit Research Institute (EBRI) released its 2022 Spending in Retirement Survey, earlier this month. Results of the survey found that retirees are spending much more than they can afford in 2022 (17% in 2020 vs 27% in 2022). Black and Hispanic retirees, as well as those with lower annual household income brackets and poor self-reported health status, indicated that their spending exceeds their ability to pay.
How does a Retirement Calculator aid in retirement planning?
The Retirement Calculator can help you figure out how much money you’ll need to save for retirement. However, the retirement calculator online requires specific information in order to calculate the retirement corpus. To project investment expenses and duration, basic information such as current age, retirement age, and life expectancy are required.
The calculator also requires monthly expenses such as utility bills, house rent, driver/maid/cook salaries, maintenance, fuel, leisure, medicines, and so on. It computes the future value of these expenses. Using the inflation rate, the calculator calculates the future value of the costs.
When calculating the retirement corpus, personal information such as marital status, dependents, city of residence, and habits are also considered. These specifics aid in understanding the family situation and developing an appropriate plan.
Current investments are also evaluated in order to determine how much more money must be invested in order to achieve financial independence in retirement.
Based on the information provided above, the retirement calculator online computes the retirement corpus.
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Alternatives of Ballpark E$timate® Online Retirement Calculator
Retirement calculators can help you estimate how much income you will have in retirement or how much you will need to save to retire at a specific time. We ranked nine popular alternatives of Ballpark E$timate® Online Retirement Calculator to help you prepare for retirement and find the best online calculators.
MaxiFi Basic Retirement Calculator
MaxiFi, which was previously known as the free ESPlanner Basic, is one of the best retirement calculators we could find. It does things that no other retirement calculator does, and it ranks high on our retirement calculator scorecard in all three accuracy, usability, and education categories.
You enter income sources such as Social Security and pensions (amounts and start dates), as well as savings and investment values, and it calculates how much money you will need to save (or what your pre-retirement spending can be) from now until retirement to maintain your discretionary spending at the target you set.
New Retirement is a website that aims to be a one-stop shop for retirement planning. Users create a profile, enter a plethora of personal financial information and goals, and then explore the results. The program provides results in a goal-oriented format, with a timeline to determine how close you are to retiring when you want. It also offers in-depth analysis, potential next steps, and educational material, and it is intended for users to return to it on a regular basis.
AARP Retirement Income Calculator
The AARP Retirement Income Calculator estimates your projected income by a target retirement date and the minimum amount you’ll likely require. It displays results in terms of annual cash flow streams.
MarketWatch’s Retirement Calculator
The MarketWatch Retirement Calculator is a multi-part tool that determines whether you can afford to retire at the desired age. Although it appears condensed at first, it appears to be very versatile after a trial. You can enter spousal information, various types of retirement income such as Social Security, as well as itemized retirement accounts and expenses.
When finished, the calculator displays three different graphs indicating your retirement strategy. These include an asset graph, projected income, and retirement spending. Even if your plan appears to be on the right track, the program provides recommendations at the top.
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