Human Life Value Calculator
- Years until retirement
- Number of years remaining before your retirement.
- Current annual income
- Amount of money you currently earn in a year.
- Return on investments
- Your expected annual return from your investments. This is the rate of your after-tax return and is influenced by life expectancy, surrender value, cost of insurance etc. If you are initiating this calculation prior to any investment, this is the rate of return you can expect from your investments. You can also select the frequency of the accumulation of your earnings in your investment account. The type of investment you choose has an effect on the actual rate of return. For example, the average annual rate of return for the last thirty years for the TSX is about 10%. Bank or credit unions can pay as little as 2% or even less on saving accounts. It is important to know that future rates of return cannot be foreseen and investments that pay higher rates of return have a higher risk and are more volatile.
- Expected annual inflation rate
- This is your estimated rate of inflation for upcoming years.
- Expected income growth
- Percentage rate by which you expect your annual income will increase.
- Human life value
- Economic value of your life. By investing this amount today, you can make earnings that will be equivalent to your lifetime income.