Overview

The Retirement Savings Calculator estimates how much you need to save for retirement. Enter your current age, retirement age, monthly living expenses, and life expectancy to find the total required fund and monthly savings target.

Formula

Required Retirement Fund = Monthly Expenses × 12 × Years in Retirement × (1 + Inflation)^Years to Retirement. Monthly Savings Needed = Fund / (((1 + r)^n - 1) / r), where r = monthly return, n = months until retirement.

How to Use

1. 1Enter your current age and target retirement age.
2. 2Enter desired monthly living expenses (in today's value).
3. 3Set your life expectancy (typically 85–90).
4. 4Enter expected investment return rate and inflation rate.
5. 5Click Calculate to view the required fund and monthly savings amount.

Examples

Background

Korea's retirement pension system was introduced in 2005 with the Employee Retirement Benefit Guarantee Act. The system has been transitioning from traditional lump-sum severance payments to DB (Defined Benefit) and DC (Defined Contribution) pension plans, with Individual Retirement Pensions (IRP) available since 2012. Korea is experiencing one of the world's fastest aging populations, and reliance on the National Pension alone is widely regarded as insufficient. A three-pillar pension approach (National Pension + corporate retirement pension + personal pension) is recommended for comprehensive retirement planning.

Tips

• ✔Subtract expected public pension benefits from the total needed, then plan personal savings for the shortfall.
• ✔Always factor in inflation — failing to do so significantly underestimates the true amount needed.
• ✔Include medical and long-term care costs separately for a more accurate retirement plan.

FAQ