There's a new retirement savings calculator made available by the United States Government. It's free online and offline and helps users plan for their retirement, calculate how much they need to save and make better financial planning decisions. To find out more, including where to find it, read on.



Background

The calculator's accompanying guide is titled "Taking the Mystery out of Retirement Planning." It was produced by the Department of Labor's Employee Benefit Security Administration branch. Essentially, the booklet provides a series of scenarios along with several easy-to-follow worksheets that help you calculate how much you need to set aside in long-term savings. The online worksheets are automated.

Where You Can Find It

Previously, you could only obtain a copy of the guide and worksheets by calling and requesting a printed copy. However, it's now available online and can be viewed for free or printed off. The site includes a simple retirement savings calculator that even lets you store your information for up to one year.

If you prefer to order a free printed copy, you can do so by calling the Department of Labor at 1-866-444-3272. To access the website though, simply visit dol.gov/ebsa - the calculator and booklet can be found under Publications and Reports.

Features of the Calculator and Guide

The biggest advantage to using this simple 62-page booklet is how easy it is to use. Whether you're doing the worksheets with the online calculator or by yourself using a printed copy, it's easy to understand and follow. The tool is also very diverse and flexible. It lets you input a variety of scenarios, from extra part-time income after you retire to additional costs, like extended health care.

The next feature that makes this online retirement calculator stand out from the competition is its ability to make very complex assumptions. An example of this is how it treats health care inflation. Other retirement calculators simply assume that all expenses will inflate at a rate of about 3.5%, however this calculator knows that healthcare typically rises at about 7%. That potentially major discrepancy is accounted for.

Problems With the Guide

The comprehensive guide attaching this new government calculator has one key drawback - it's targeted predominantly at individuals who are about a decade away from retirement. And while the tools can help certain retirees, those closer to or already in retirement won't get much out of this material.

The other drawback is that there is little advice for people who suspect they may incur extra health care costs or the expense of dealing with potential dependents.

That said, it's still a fantastic retirement savings calculator. Overall, this is a simple tool which is easy to use and yet still very complex in its calculations and projections. It also has a firm grasp of government regulations that need to be incorporated into any realistic financial projections. Finally, it's free so you could hardly ask for anything more.