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Retirement Nestegg Calculator

Do you know how much it takes to create a secure retirement? Use this calculator to help determine what size your retirement nestegg should be.

You may need a nestegg of NEED_AT_RETIRE to retire at age AGE_OF_RETIREMENT.

This is based on retirement expenditures of INCOME_REQUIRED_AT_RETIRE per year. This amount is INCOME_PERCENT of your projected last working year's income of INCOME_AT_RETIRE. If you receive SOCIALSECURITY_AT_RETIRE per year from Social Security and if your current savings of CURRENT_SAVINGS earns PRE_RATE_OF_RETURN annually, you will need to accumulate an additional NEED_AT_RETIRE_PLAN by the time you retire. This would require saving ADJUST_ANNUAL_SAVINGS per year (ADJUST_MONTHLY_SAVINGS per month) for YEARS_UNTIL_RETIREMENT years. **GRAPH**
Results Summary
Projected nestegg requiredNEED_AT_RETIRE
Projected nestegg required if you receive SOCIALSECURITY_AT_RETIRE per year from Social SecurityNEED_AT_RETIRE_AFSS
Projected additional savings required after SOCIALSECURITY_AT_RETIRE per year from Social Security and current savings of CURRENT_SAVINGS earning PRE_RATE_OF_RETURN annually NEED_AT_RETIRE_PLAN
Retirement Plan Inputs
Current ageCURRENT_AGE
Age of retirementAGE_OF_RETIREMENT
Household incomeHOUSEHOLD_INCOME
Current retirement savingsCURRENT_SAVINGS
Expected income increaseSALARY_PERCENT
Years of retirement incomeYEARS_OF_RETIREMENT
Income required at retirementINCOME_PERCENT
Investment Returns and Inflation
Rate of return before retirementPRE_RATE_OF_RETURN
Rate of return during retirementPOST_RATE_OF_RETURN
Expected inflation rateINFLATION_RATE
Are you married?MARRIED
Include Social Security?INCLUDE_SOCIAL_SECURITY
Result Summary
Years until retirementYEARS_UNTIL_RETIREMENT
Your last year's incomeINCOME_AT_RETIRE
Estimated annual retirement expendituresINCOME_REQUIRED_AT_RETIRE
Your ending balanceENDING_BALANCE

Balances by year with no future savings*

**REPEATING GROUP**

*Understand that the likelihood of this scenario unfolding exactly as portrayed is extremely remote. It is based on the assumption that fixed rates of return, that don't vary from year to year, will apply to your entire retirement portfolio.

Retirement Nestegg Calculator 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 occurs when you are 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.
Rate of return before retirement
This is the annual rate of return you expect from your retirement savings and investments. This should also be an after-tax rate of return if the majority of your retirement savings is not in a tax-deferred account such as a 403(b), 401(k), 457(b), annuity or IRA. The actual rate of return is largely dependent on the types of investments you select. The Standard & Poor's 500® (S&P 500®) for the 10 years ending Dec. 1st, 2015, had an annual compounded rate of return of 7.76%, including reinvestment of dividends. From January 1970 through to Dec. 2015, the average annual compounded rate of return for the S&P 500®, including reinvestment of dividends, was approximately 10.5% (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 financial institution 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 Separate Account investment 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. This should also be an after-tax rate of return if the majority of your retirement savings is not in a tax-deferred account such as a 403(b), 401(k), 457(b), annuity or IRA. This rate 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 Standard & Poor's 500® (S&P 500®) for the 10 years ending Dec. 1st, 2015, had an annual compounded rate of return of 7.76%, including reinvestment of dividends. From January 1970 through to Dec. 2015, the average annual compounded rate of return for the S&P 500®, including reinvestment of dividends, was approximately 10.5% (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 financial institution 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 Separate Account investment funds and/or investment companies may charge.

Expected income increase
Annual percent increase you expect in your household income.
Years of retirement income
Total number of years you expect to use your retirement income.
Income required at retirement
The percentage of your pre-retirement household income you think you will need in retirement. This amount is based on the household income earned during the year immediately before your retirement. You can change this amount to be as low as 40% and as high as 160%. The percentage should reflect an after-tax amount if the majority of your retirement savings is not in a tax-deferred savings account such as a 401(k), IRA or other tax-deferred account.
Expected rate of inflation
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 2015 the CPI has a long-term average of 2.9% annually. Over the last 40 years highest CPI recorded was 13.5% in 1980. For 2015, the last full year available, the CPI was 0.0% annually as reported by the Minneapolis Federal Reserve.
Married checkbox
Check this box if you are married. Married couples have a higher maximum Social Security benefit than single wage earners.
Include Social Security checkbox
Check this box if you wish to include Social Security benefits in your retirement planning. Social Security is based on a sliding scale depending on your income, how long you work and at what age you retire. Social Security benefits automatically increase each year based on increases in the Consumer Price Index. Including a spouse increases your Social Security benefits by 1.5 times your individual estimated benefit. Please note that this calculator assumes that only one of the spouses work. Benefits could be different if your spouse worked and earned a benefit higher than one half of your benefit. If you are a married couple, and both spouses work, you may need to run the calculation twice – once for each spouse and their respective income. This calculator provides only an estimate of your benefits.

The calculations use the 2016 FICA income limit of $118,500 with an annual maximum Social Security benefit of $31,668 per year ($2,639 per month) for a single person and 1.5 times this amount for a married couple. To receive the maximum benefit would require earning the maximum FICA salary for nearly your entire career. You would also need to begin receiving benefits at your full retirement age of 66 or 67 (depending on your birthdate). This calculator rounds your age of full Social Security benefits to the next highest full year. If your birthdate is between 1955 and 1959 your actual full retirement age for Social Security is 66 plus two months for each year after 1954. Your actual benefit may be lower or higher depending on your work history and the complete compensation rules used by Social Security.



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