Get Ready for Retirement With Scott Burns’ Retirement Calculator
The Scott Burns retirement calculator is a planning tool from financial columnist Scott Burns that estimates the yearly income you will need in retirement and the savings required to close any gap. You enter your current age, target retirement age, expected inflation, and expected Social Security and pension income, and it estimates the income shortfall your savings must cover. Treat the result as an estimate to review with a financial professional, not a guarantee.
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What Is The Scott Burns’ Retirement Calculator?
The Scott Burns’ Retirement Calculator is an online retirement planning tool. Developed by financial columnist Scott Burns, the calculator helps users to calculate their desired retirement income and savings, as well as track their investments and asset allocations over time.
The calculator is based on Burns’ retirement planning principles, which include:
- Investment planning: how your savings are invested
- Financial planning: turning long-term goals into savings targets
- Tax planning: estimating future taxable income
- Asset allocation: the mix of stocks, bonds and cash
- Cost of living adjustment: the income needed to maintain your lifestyle after retirement, adjusted for inflation
How Does The Scott Burns’ Retirement Calculator Work?
The Scott Burns’ Retirement Calculator asks you to input including their current age, their desired retirement age, the expected rate of inflation and their expected Social Security and pension income. The calculator will then calculate the required yearly retirement income, as well as any retirement savings needed to bridge the gap in cash flow.
In addition, the calculator also provides users with insights on their asset allocation, portfolio risk, as well as potential returns on different investment instruments such as stocks, bonds and savings accounts at different risk levels. The calculator also advises users on their investment strategies and investment management.
How Can MarketXLS Help With Retirement Planning?
MarketXLS is an Excel add-in that adds financial-data functions to Excel, and it is separate from the Scott Burns calculator. Once the calculator gives you a savings target, you can track the investments meant to reach it in an Excel portfolio tracker, using formulas such as =Last("VTI") for prices and =DividendYield("VTI") for income.
Final Thoughts
The Scott Burns retirement calculator gives a quick estimate of the retirement income you need and the savings gap to close. Pair it with a regular review of your actual investments, for example in an Excel portfolio tracker, and revisit the estimate as your age, savings and assumptions change. This article is educational and not financial advice.
Browse MarketXLS templates for portfolio and retirement models.