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Retirement Pension Planner
Do you know what it will take to create a secure retirement? Use this calculator to help you create your retirement plan. View your retirement savings balance and your withdrawals for each year until the end of your retirement. Social security is calculated on a sliding scale based on your income. Including a non-working spouse in your plan increases your social security benefits up to, but not over, the maximum.
Definitions
- 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 64. This calculator also assumes that you make your entire contribution at the end of each year.
- Household income
- Your total household income. If you are married this should include your spouse's income.
- Current retirement savings
- Total amount that you currently have saved toward your retirement. Include all sources of retirement savings such as 401(k)s, IRAs and Annuities.
- Pre-retirement rate of return
- This is the annually compounded 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. For example, for the last thirty years the average annual rate of return for domestic equity stocks has been about 10%. Savings accounts at a bank pay as little as 2%. For the purposes of this calculator taxation is not factored into the results.
- Post-retirement rate of return
- This is the rate of return expected 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. For example, a balanced portfolio of stocks and bonds may earn two to three percent less each year, but would be less susceptible to dramatic stock market fluctuations.
- Percent of income to save
- The percentage of your annual income you will save for your retirement goals.
- Expected salary increase
- Annual percent increase you expect in your household income.
- Years until retirement
- Number of years before retirement.
- Years of retirement income
- Total number of years you expect to use your retirement income.
- Percent of income at retirement
- The percent of your working year's household income you think you will need to have in retirement. This amount is based on your income earned during the last year you will work. The default is 70%. You can change this amount to be as low as 50% and as high as 150%.
- Company pension income
- This is the monthly pension benefit from you expect to receive when you retire. This is amount is not adjusted for inflation.
- Spouse pension income
- This is the monthly pension benefit your spouse expects to receive at retirement. This is amount is not adjusted for inflation.
- Are you married?
- Check this box if you are married. Married couples have a higher maximum social security benefit than single wage earners.
- Include social security?
- Check this box if you wish to include social security benefits in your retirement planning.
- Expected rate of inflation
- What you expect for the average long term inflation rate.
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