A digital tool designed to project potential income during cessation of employment within a specific nation. These resources typically factor in variables such as current savings, contributions to national superannuation schemes, anticipated expenditure, and desired lifestyle to estimate financial preparedness for later life. For instance, an individual might input their current KiwiSaver balance, planned contribution rate, and estimated living costs to receive a projection of their retirement funds.
Employing such tools offers substantial advantages. These advantages include facilitating proactive financial planning, identifying potential shortfalls in savings, and allowing for adjustments to savings strategies well in advance of actual cessation of employment. Historically, individuals relied on manual calculations or financial advisors for such projections, but the advent of these digital tools has broadened accessibility and convenience for individuals seeking greater financial clarity and autonomy. The use of these tools can empower individuals to make more informed decisions regarding their finances, leading to greater financial security in their later years.