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.

Your retirement savings is estimated to provide NPV_MONTHLY_WITHDRAW_AF per month at retirement after taxes and inflation (in today's dollars).

According to your inputs, at age AGE_OF_RETIREMENT your savings will provide MONTHLY_WITHDRAW_BF per month for YEARS_OF_RETIREMENT years. This is before taxes. After taxes you will have MONTHLY_WITHDRAW_AF per month. In today's dollars, this is equivalent to NPV_MONTHLY_WITHDRAW_AF with INFLATION_RATE annual inflation. **GRAPH**
Savings can provide
Income of before taxesMONTHLY_WITHDRAW_BF per month
Income of after taxesMONTHLY_WITHDRAW_AF per month
Value of income today ( with INFLATION_RATE annual inflation)NPV_MONTHLY_WITHDRAW_AF
Retirement Income Results
Starting balanceSTARTING_BALANCE
Annual contributionANNUAL_CONTRIBUTION
Current ageCURRENT_AGE
Age of retirementAGE_OF_RETIREMENT
Years of retirementYEARS_OF_RETIREMENT
Rate of return before retirementRATE_OF_RETURN
Rate of return during retirementRETIREMENT_ROR
Current tax rateCURRENT_TAX_RATE
Retirement tax rateRETIREMENT_TAX_RATE
Expected rate of inflationINFLATION_RATE
Is this savings tax-deferred?TAX_DEFERRED
Increase annual deposit with inflation?INCREASE_ANNUAL_CONTRIBUTION
Total contributionsTOTAL_CONTRIBUTIONS
Savings total before taxesSAVINGS_TOTAL_BF_TAX
Savings total after taxesSAVINGS_TOTAL_AF_TAX
Value of savings today (after inflation)NPV_TOTAL_AFT

Income Taxes

We estimate that you will owe RETIREMENT_TAX_RATE income tax on MONTHLY_TAXABLE_AMOUNT of your monthly retirement income. TAX_MESSAGE **GRAPH**

Balances by year

**REPEATING GROUP**

Retirement Income 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. This should reflect the total you save toward your retirement. This should include any retirement plans and your employer's contributions to these plans. It should also include any other retirement accounts and any retirement savings in non-retirement accounts. This calculator assumes that you make one annual contribution at the start of each year, and any withdrawals happen once per month at the beginning of each month.
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 occurs when you are actually age 64.
Rate of return before retirement
This is the annual rate of return you expect from your retirement savings and investments.before taxes. The actual rate of return is largely dependent on the types of investments you select. The S&P 500® for the 10 years ending Dec. 31st, 2013 had an annual compounded rate of return of 7.3%, including reinvestment of dividends. From January 1970 through the end of 2013, the average annual compounded rate of return for the S&P 500®, including reinvestment of dividends, was approximately 10.6% (source: www.standardandpoors.com). Since 1970, the highest 12-month return was 61% (June 1982 through June 1983). The lowest 12-month return was -43% (March 2008 to March 2009). Savings accounts at a bank may pay as little as 0.25% or less but carry significantly lower risk of loss of principal balances.

It is important to remember that these scenarios are hypothetical and that future rates of return can't be predicted with certainty and that investments that pay higher rates of return are generally 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. It is not possible to invest directly in an index and the compounded rate of return noted above does not reflect sales charges and other fees that funds and/or investment companies may charge.

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 dependent on the types of investments you select. The S&P 500® for the 10 years ending Dec. 31st, 2013 had an annual compounded rate of return of 7.3%, including reinvestment of dividends. From January 1970 through the end of 2013, the average annual compounded rate of return for the S&P 500®, including reinvestment of dividends, was approximately 10.6% (source: www.standardandpoors.com). Since 1970, the highest 12-month return was 61% (June 1982 through June 1983). The lowest 12-month return was -43% (March 2008 to March 2009). Savings accounts at a bank may pay as little as 0.25% or less but carry significantly lower risk of loss of principal balances.

It is important to remember that these scenarios are hypothetical and that future rates of return can't be predicted with certainty and that investments that pay higher rates of return are generally 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. It is not possible to invest directly in an index and the compounded rate of return noted above does not reflect sales charges and other fees that funds and/or investment companies may charge.

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.

Expected inflation rate
This is what you expect for the average long-term inflation rate. A common measure of inflation in the U.S. is the Consumer Price Index (CPI). From 1925 through 2013 the CPI has a long-term average of 3.0% annually. Over the last 40 years highest CPI recorded was 13.5% in 1980. For 2013, the last full year available, the CPI was 1.7% annually as reported by the Minneapolis Federal Reserve.
Years of retirement
Number of years you expect to live in 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.
If 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), 403(b), governmental 457(b), variable annuity or other tax-deferred investment.


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