How A Pension Calculator Can Help You Save

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If you are approaching retirement and are looking for a useful way to harness artificial intelligence, why not try one of the many pension calculators online.

Tracking the money you have saved and working out how much you might need once you give up work are just two of the problems.

But taking a stab at how long you might live can throw all these plans into disarray if you get the forecast wrong.

Pension calculators are typically free online tools that benchmark your current savings and investments and then try to give an idea of how you can spend that money in retirement.

Most look at your current income and spending and suggest how long you can maintain your lifestyle after giving up work.

Three favourite pension calculators

Three popular pension calculators for UK retirement savers are:

The Money Advice Service – free to access online, the service is funded by the government with the aim of offering impartial advice about anything related to money.

That includes how to manage pension freedoms while working or retired.

The calculator asks for some basic personal details, such as your age, date of birth and gender.

Enter your current salary to help the system work out how much you need to save to maintain your lifestyle in retirement.

The whole process should take no more than a few minutes.

Financial giant Aviva has a comprehensive retirement library online, together with a calculator.

Although using the calculator and reams of information are free, the calculator is a marketing tool and ask for more detail than the Money Advice Service. This includes questions about your health, height, weight and if you smoke.

The result is a financial analysis that shows how your retirement savings are impacted by putting aside more or less money.

For a quick overview of the state of your retirement savings, try investment manager Nutmeg.

The web site works out how much you need to save to meet your personal financial goals, and you can adjust these goals to see what sort of retirement you might have.

Don’t forget these are just three examples of the dozens of retirement and pension calculators out there – an online search will suggest a lot more.

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