Retirementize

Optimize Your Retirement

Home Plan Dashboard Budget Savings Forecast OAS Clawback Blog

Two Types of Retirement Calculators: Pre-Retirement vs. Post-Retirement

Two Types of Retirement Calculators

When it comes to retirement planning, two main types of tools can guide you: Retirement Savings Calculators (pre-retirement) and Retirement Income Calculators (post-retirement). Let’s explore how each tool works, their differences, and which ones are worth checking out!

Pre-Retirement: Retirement Savings Calculators

If you’re still in the saving stage, you’ll want a tool that helps you understand how much you should be putting away for the future. These Retirement Savings Calculators focus on helping you build your nest egg. They consider your current savings, investment returns, and contributions to estimate how much you’ll need by the time you retire.

  • NerdWallet Retirement Calculator – Free. Easy to use and integrates your current financial situation with future goals.
  • Bankrate Retirement Savings Calculator – Free. Helps plan your savings based on retirement goals and contributions.
  • Vanguard Nest Egg Calculator – Free. Ideal for projecting how long your savings will last based on withdrawal rates.
  • Fidelity Retirement Score – Free. Calculates how much you need to save for retirement, giving a clear score on how prepared you are.
  • Personal Capital Retirement Planner – Free. Real-time syncing with your accounts makes it easy to track your financial progress.
  • Wealthsimple Retirement Calculator – Free and simple. Factors retirement age, annual contributions, investment growth. Suggests needed savings to reach retirement goal.

Why are these calculators free?... Because they are simple and easy to make and maintain. But, more importantly, they are free because they are trying to convince you to buy products and services from them. The goal of these apps is to show you what you have for retirement and what you need for retirement, in the hopes that you with invest with them or provide a paid service.

Fun fact: The 4% Rule, which guides how much to withdraw annually in retirement, originated from a 1994 study by financial planner William Bengen. It’s still a widely used benchmark today!1

Post-Retirement: Retirement Income Calculators

When you’ve hit retirement, your focus shifts to maintaining a steady income and stretching your savings. Retirement Income Calculators help you optimize withdrawals, manage taxes, and balance multiple income sources like pensions and investments. These tools are essential to ensure your money lasts throughout your retirement years.

  • Retirementize – Free. Optimizes withdrawals to minimize taxes and maximize after-tax income. Includes spousal planning and inflation adjustments.
  • Income Laboratory – Paid. Offers advanced income strategies with tax projections and spending flexibility options.
  • NewRetirement Planner+ – Paid. Comprehensive planning for both pre- and post-retirement phases, with a focus on withdrawal strategies.
  • Fidelity Income Planner – Free. Helps project post-retirement income from various sources while considering tax impacts.
  • Pralana Gold – Paid. A detailed tool that factors in taxes, Social Security, and healthcare costs for precise retirement income planning.
  • Conquest – Paid and only available to financial planners. A very comprehensive and professional tool that factors in every stage of planning, and all retirement details.

Did you know? According to a study by Purdue University, happiness peaks at an annual income of around $75,000. Beyond that, more money doesn’t significantly boost emotional well-being!2

Key Differences

The biggest difference between these two tools is their focus. Pre-retirement calculators help you grow your savings by projecting how much you need to save, while post-retirement calculators focus on how to spend and manage your money after retirement.

Fun fact: U.S. life expectancy has increased by about 10 years since the retirement age of 65 was established. With more people living into their 90s, retirement income planning is more critical than ever!3

Conclusion: Finding the Right Calculator

Whether you’re saving for retirement or planning your withdrawals, the right tool can make a huge difference. Whether you’re just starting out or already retired, try one of the free Retirement Savings Calculators like Retirementize to maximize your post-retirement income.

Ready to optimize your retirement income? Try Retirementize today!
  1. 1. Investopedia: Four Percent Rule
  2. 2. Purdue University Study: Money and Happiness
  3. 3. SSA: U.S. Life Expectancy