When we think about our finances and future, there is always a question in our mind that are we saving enough money for our retirement. We always end up spending more money then we need to, be it a need, or just a style statement we often indulge into expenses which could have been easily avoided. Specially if you are planning for a good life after retirement, you need to have enough savings so that you can live comfortably after you stop earning money. For that to happen you need to make sure that you are spending less money today and saving a few more dollars to reach your goal.
Now to help you visualize your goal we present Gap Analysis by edukate. This is a free online tool to calculate savings per day to meet your retirement goals. Basically, this tool calculates the savings you have now versus the savings required for a comfortable retired life. The gap between the two can be eliminated by saving a little more money each day.
Let’s look exactly how this tool works:
When you land on this website, you are introduced to Kate who is your guide through this tool. You will be required to enter a few details about yourself, your income and savings, if you will be getting a pension after retirement, etc. Once filled out click on the get results button at the bottom.
The result is shown in three steps and then a final screen is shown with your everyday target to achieve your retirement goal. The three important numbers are shown in the below screenshot.
The number one screen shows you how many days you will have to live on your saved money after retirement. The average life span here is taken as 95.
The number two screen shows how many of those days can be funded if you save at the current rate.
The number three screen shows number of days you will have no money to spend because you didn’t have enough savings.
Finally, you are taken to a result screen with these numbers displayed at the top and a 25 cent icon with a plus and minus sign on either side of it. When you click the plus sign it will increase your savings target by 25 cents and when you click the minus sign it will decrease your savings target by 25 cents. Keep on adding by clicking the plus sign till you reach your right goal, where the days covered are 100% and age is 95. That is the exact amount you need to save additionally to your current savings to reach your retirement goals.
You can also check out Thrive free personal finance manager.
This is a really cool online tool to realize how much you are saving and how much you should be saving to plan your retirement. Spending a little less each day adds on to your savings. If you make it a habit, you will reach your goal easily and enjoy your retirement in a worry free way.
Check out Gap Analysis from edukate here.