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Retirement Planner
Do you know what it will take to prepare you for 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.
Note: Calculators may take a short time to load
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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
age 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 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.
For example, from January 1970 to February 2003, the average
compounded rate of return for the S&P 500, including reinvestment
of dividends, was approximately 11%. 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 potentialloss of principal on your investment.
Post-retirement rate of return:
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.
For example, from January 1970 to February 2003, the average
compounded rate of return for the S&P 500, including reinvestment
of dividends, was approximately 11%. 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.
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%.
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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