Retirement Income
Use this calculator to determine how much
monthly income your retirement savings may provide you in your
retirement. Your annual savings, expected rate of return and your
current age all have an impact on your retirement's monthly income.
View the full report to see a year-by-year break down of your
retirement savings.
Definitions
- Starting balance
- Initial balance that you have in your retirement accounts.
- Annual contributions
- The amount you will
contribute to your retirement savings each year. This calculator
assumes that you make your contribution at the beginning of each year.
- Current age
- Your current age.
- Age of retirement
- Age you wish to retire.
This calculator assumes that the year you retire, you do not make any
contributions to your retirement savings. So if you retire at age 65,
your last contribution happened when you were actually age 64.
- Rate of return before retirement
- This is
the annual rate of return you expect from your investments before
taxes. The actual rate of return is largely dependant on the type of
investments you select. From January 1970 to December 2005, the average
compounded rate of return for the S&P 500, including reinvestment
of dividends, was approximately 11.4% per year. During this period, the
highest 12-month return was 61%, and the lowest was -39%. Savings
accounts at a bank pay as little as 1% or less. It is important to
remember that future rates of return can't be predicted with certainty
and that investments that pay higher rates of return are subject to
higher risk and volatility. The actual rate of return on investments
can vary widely over time, especially for long-term investments. This
includes the potential loss of principal on your investment.
- Rate of return during retirement
- This is
the annual rate of return you expect from your investments during
retirement. It is often lower than the return earned before retirement
due to more conservative investment choices to help insure a steady
flow of income. The actual rate of return is largely dependant on the
type of investments you select. From January 1970 to December 2005, the
average compounded rate of return for the S&P 500, including
reinvestment of dividends, was approximately 11.4% per year. During
this period, the highest 12-month return was 61%, and the lowest was
-39%. Savings accounts at a bank pay as little as 1% or less. It is
important to remember that future rates of return can't be predicted
with certainty and that investments that pay higher rates of return are
subject to higher risk and volatility. The actual rate of return on
investments can vary widely over time, especially for long-term
investments. This includes the potential loss of principal on your
investment.
- Current tax rate
- Your current marginal tax rate you expect to pay on your taxable investments.
- Retirement tax rate
- The marginal tax rate you expect to pay on your investments at retirement.
- To increase deposits with inflation checkbox
- Check this box if wish to have your annual contribution increased each year to keep up with inflation.
- Is savings is tax deferred checkbox
- Check
this box if your retirement savings is being deposited into a tax
deferred account. This includes an IRA, 401(k), Variable Annuity or
other tax deferred investment.
|