| 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. |
| Rate of return before retirement |
This is the annual rate of return you expect
from your investments after taxes. The actual rate of return is largely dependent
on the type of investments you select. From January 1970 to December 2004,
the average compounded rate of return for the S&P 500, including reinvestment
of dividends, was approximately 11.5% per year. During this period, the highest
12-month return was 64%, 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, after taxes. 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 type of investments you select. From January 1970 to December
2004, the average compounded rate of return for the S&P 500, including
reinvestment of dividends, was approximately 11.5% per year. During this period,
the highest 12-month return was 64%, 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. |
| Percent of income to contribute |
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 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. You can change this
amount to be as low as 50% and as high as 150%. |
| Expected rate of inflation |
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), which has a long-term average of 3.1% annually, from 1925 through 2004. |
| If you are married checkbox |
Check this box if you are married. Married couples
have a higher maximum social security benefit than single wage earners. |
| To include Social Security checkbox |
Check this box if you wish to include social
security benefits in your retirement planning. Please note that the Social
Security benefits could be different if your spouse worked and earned a benefit
higher than one half of your benefit. |