Retirement Planning Worksheet

Want to know when you'll be able to retire? How much you need to save each year to get there? Use our Retirement Worksheet. State Street Research & Management Co., a Boston-based money management and mutual fund sponsor, helped in the development.

1.	Current annual income (you and your spouse combined)
	$80,000

2.	Desired retirement income
	$60,000

3.	Estimated Social Security and pension income
	$20,000

4.	Income needed from personal savings (includes tax-deferred plans and portfolio investments)
	Subtract (3) from (2) $40,000

5. Desired retirement age (Make note of the income multiple that fits your wishes)
	Retirement Age	Income Multiple
	50-54	26
	55-59	23
	60-64	20
	65 & Over	17

(For our model, we'll use 20)

6.	Necessary personal savings Multiply (5) by (4)
$800,000

Number (6) is your retirement savings goal. Now, determine how to get there.

7.	Total personal savings now
	$250,000
(Your IRA, annuities, insurance policies, etc.)

8. Approximate years until retirement
	Retirement Years	Growth Multiple to Retirement
	8	2
	12	3
	16	4
	20	5
	24	6

(We'll use 8 for a multiple of 2 in our model)

9.	Estimated value of current personal savings at retirement
	Multiply (8) by (7) $500,000

10.	Savings shortfall
	Subtract (9) from (6) $300,000

11. Approximate years until retirement
	Years	Savings Factor
	8	.100
	12	.070
	16	.045
	20	.032
	24	.025

(We'll assume 84a factor of .100 in our model)

12.	Annual savings necessary
	Multiply (11) by (10) $30,000