Retirement Adequacy Calculator (RAC)

About the Project

Retirement financial security is an increasingly important challenge, yet many individuals find it difficult to determine whether their current savings and contributions will be sufficient to support their desired standard of living after retirement. The Retirement Adequacy Calculator (RAC) is an innovative digital decision-support tool designed to make retirement planning more accessible, personalised, and actionable. By using key personal and financial information such as age, employment entry age, salary, salary growth, contribution rate, investment/dividend return, and gender, RAC estimates an individual's projected retirement savings and monthly retirement income. More importantly, it evaluates whether the projected income is sufficient to meet a defined retirement adequacy target and identifies the contribution rate required to close any potential shortfall. Complex actuarial and financial calculations are transformed into simple, understandable results through an interactive interface, allowing users to immediately assess their retirement position and explore the implications of different financial circumstances. RAC therefore bridges the gap between technical financial modelling and everyday decision-making. Its potential applications extend beyond individual financial planning to financial education, employee engagement, institutional retirement planning, and public awareness. By enabling users to understand their retirement needs before retirement, RAC promotes earlier and more informed financial decisions and contributes towards improving long-term retirement preparedness.