Trying out the Retirement Calculator

in investing •  last year 

Yesterday, I wrote about saving $10 a day longterm. It's amazing how much money this turns into.

What is even more interesting is all the feedback I got. Lot's of people mentioned that saving money is difficult, but everyone agreed it is a good idea.

There were a couple of people who mentioned they can live off $10 a day, especially when combined with national and private pension funds etc. Personally, I don't think $10 a day is enough to retire on in developed countries. I mean if you live off the grid and own property and are pretty self-sufficient, it will likely be possible. However, even if that is the case, I'm sure you will be much happier with an income of $100 a day during retirement!

One of the things about money is most people don't have enough of it. Everyone can use more. A lot of people look at financially successful (rich) people with envy. Some of them want to take the money. Personally, unless they stole the money, I think they deserve it. In most countries, the more you make the more you pay in tax. Also, unless there is a system like Universal Basic Income, it's really impossible to expect people not to get into trouble by wasting their money.

I don't think we are going to see Universal Basic Income any time soon, even if we do, wouldn't you rather have more money? It definitely won't be paying for overseas travel or luxuries, it is basic by definition. Think food stamps and government housing. Not if I can help it, No thanks! That's where retirement planning comes in handy.



I decided I'm going to enter parameters based on the Average OECD family income. If you don't know what the OECD is here is a nice link. Generally, countries in the OECD are economically stable and transparent, perhaps most important the state doesn't abuse the economy and recognizes economic rights. If you don't live in an OECD country, maybe you won't find my analysis as useful.

I need to get some figures.

Across the OECD, the average household net-adjusted disposable income per capita is USD 30 563 a year.

This is cool, so it seems like, after taxes, people have on average 30500 dollars a year. Why do I take the after-tax income? Well, they never really seem to go away!

I got the above figures from here:


Here is a retirement calculator, try it out to see if you are gonna be screwed or not:

Please note, it doesn't consider tax.

I'm going to go with 2 cases. 1 will be based on OECD average and another will be based on some easy numbers.

Case 1 OECD average

Finding average pension incomes is really difficult actually and really changes based on the country and individual job. I'm just going to assume it will be 500 a month, or 1000 for a couple.


I'm going to assume you are 40 and have no savings yet. I'll also assume the average OECD family net income of 30563 dollars per year.
Inflation is 3% and interest earnings is 6%. These are the defaults.
Finally, I'll assume you retire at 65 and die at 90. Why not?


Wow, it seems we will need around 400,000 to retire if we have 1000$ pension income and want a similar existence to what a family income of $30563 a year gets us today.

So how to get $400,000 ?

Let's assume you have no savings and you are 40 and save every day until 65...


Amount to Save Every Month: $596.88

Oh, that's about $20 a day. Now, remember, if you are going to be getting more than $1000 a month from your family pensions, you will be better off. Also, this is based on a salary of 30k a year which is low in my opinion.

I think saving this much is realistic for many people in their 40s and 50s and early 60s. If it is not, maybe you should speak to a retirement planner.

Case 2 -Rounded and Nice Numbers

I call this the I ain't relying on no government strategy.

I plugged in to end up that I want around 1 million dollars to retire. It's such a cool number! This is based on wanting 75% of a 50k a year (now) income from 65 to 85 and social security/pension income of $500 a month (pretty basic in a developed country) and 0 additional income after retirement. Inflation was set at 3% and average returns 6% by default...yummy, why not?

Saving from 40 to 65 and starting with 0. You will need to save around $1500 a month or $50 a day between the ages to have around 1 million dollars when retiring! Not so bad.

So one would need to save about $50 a day for 25 years to retire with 1 million dollars. That would give a retirement income of around $100 a day. This is actually really good if you own a house and don't need to save for retirement. If you managed this, congrats you lived and retired successfully middle-class.

It sounds like a lot to save $50 a day. However, if you include pensions, severance pay and investments you probably don't need to save anywhere near this much. Also, most people will probably be fine with $50 a day if they own a house and don't need to get to work every day.

Conclusion and Analysis

If you just use the default settings of the calculator, you have 50000 a year income you want 75% in your retirement.
You need to save around $13 a day from 30 to 65 years old and start at 30 with 20,000 dollars. It also relies on 1800 a month in pension incomes. I'm not sure if that is average or not.

One of the biggest things that will mess with the numbers is paying off a mortgage or having a young family. Realistically, these days most people at 30 haven't put much thought into this. The average age to have kids and by a house is probably right around 30. A lot of people haven't even figured out their careers by then.

I think by 40 most people are done planning a family and have a mortgage. It's definitely smart to start planning your retirement at 40.

I choose this calculator:
because it isn't tied to a bank. It seems to be based on American life. I guess they have good pensions, but they have things to worry about in retirement like paying for healthcare insurance and being sued. They do have a lot of nice places to live throughout the US though. Obviously, NYC is more expensive to retire in than rural Alabama.

It's so hard to think about this stuff and compare it to others. I really recommend everyone tries a few online calculators and if they don't like what they see go speak to a retirement planner.


Authors get paid when people like you upvote their post.
If you enjoyed what you read here, create your account today and start earning FREE STEEM!
Sort Order:  

$10 a day is really scary 😥
Either one cannot ever retire (and must work till he dies) or find some way to get passive income...

I think before people focus on passive income, they should focus on income from working. Passive income is great but it is a lot harder to get.

I really like the whole idea behind this but I need to remind you that there are places all over the world that 30K annually is just a dream.

Also, this is based on a salary of 30k a year which is low in my opinion.

Very true and thanks for bringing that up. If your income is average for your area, and your family is making less than 30k a year, maybe you are going to need to fund your retirement dramatically different than these calculations allow. If you live at below average for your area, you need to focus on attaining an average lifestyle.

I think for lower incomes, you need to get yourself some land (<7k) and definitely own your house (<20k). In places, I've been where families likely earn less than 7K, all the ones who are doing alright tend to have informal ways of making and saving money like gardens and usually have a few older retired relatives hanging around (ie. generational inter-dependency). Having children may be a good retirement strategy in those cases. In most developed countries, having children is nothing short of a terrible financial decision but there is more to life ;)

Oh, yeah, darlin! I'm all over this one! ;)

I have been saving since the day I left college. Thanks for sharing your analysis. While many in different countries will calculate it differently, the main points can be altered to fix that.


This one looks designed for Americans actually. However, I think Everyone needs to adjust it to their own circumstances. Working is the best way to make money for most people and saving from paychecks is smart. I had some student loans to pay off after university and I looked at that as priority, but as soon as those were out of the way, I really started saving too. The mountain isn't as tall when you are halfway up. Also, it's never too late for people to start since it won't get any easier.

I agree. Always the student loans! Yes. But, my father instilled in me that even though I had to prioritize those to get them off my plate, he also told me that I still had to pay myself (put away some money) also, even if it was only $1 a paycheck, to instill in my own self that I had to save, no matter how little.

I believe I owe him everything. It's never too little to start and never to late to make it happen. Thanks for this post!

Howdy sir abitcoinskeptic! These things are very interesting. In Western countries 30K annually is pretty low I agree. I wished I would have followed one of these plans when I was 30!

I agree 30k is low for western countries. Actually, I was surprised to see OECD family average is so low. In Korea, 30k a year is what 2 adults working for minimum wage would make in a year or it's a decent entry-level salary for someone who went to college with a career in mind. So a married couple in their 40s or 50s should be making considerably more.

Howdy again sir abitcoinskeptic! I agree. Your analysis is really interesting and I hope it grabs people's attention as to what can be accomplished with saving consistently, the numbers are remarkable.

My eyes are swimming, but they is great info and I will study it more when I'm alert!

It's definitely a great calculator to use. You may find a better calculator for your particular needs though, but having an idea is great.

Posted using Partiko Android

🎁 Hi @abitcoinskeptic! You have received 0.1 STEEM tip from @dswigle!

Check out @dswigle blog here and follow if you like the content :)

Sending tips with @tipU - how to guide :)

Hi @abitcoinskeptic!

Your post was upvoted by @steem-ua, new Steem dApp, using UserAuthority for algorithmic post curation!
Your UA account score is currently 3.636 which ranks you at #6001 across all Steem accounts.
Your rank has dropped 140 places in the last three days (old rank 5861).

In our last Algorithmic Curation Round, consisting of 160 contributions, your post is ranked at #93.

Evaluation of your UA score:
  • You're on the right track, try to gather more followers.
  • The readers like your work!
  • Good user engagement!

Feel free to join our @steem-ua Discord server

You got a 52.84% upvote from @ocdb courtesy of @abitcoinskeptic! :)

@ocdb is a non-profit bidbot for whitelisted Steemians, current max bid is 40 SBD and the equivalent amount in STEEM.
Check our website for the whitelist, queue and delegation info. Join our Discord channel for more information.

If you like what @ocd does, consider voting for ocd-witness through SteemConnect or on the Steemit Witnesses page. :)