It doesn’t always mean that your income will be closed as you will retire. Using this retirement income calculator, you are able to know the monthly income you will earn during the retirement. By means of your annual contribution, current age, and age of retirement this will calculate the amount of retirement savings by year. The graphs and charts will give a graphical review of payment, savings, and loan structure.
The amount you already have in the retirement account.
Assuming the payments are made at the beginning of every year, this is the decided yearly amount to be put into the savings account by you. This annual contribution should consist of all your retirement and non-retirement savings accounts. One thing to mention is that, like the payments, it is assumed that the withdrawals are also made at the beginning.
Your age on the date.
Age of retirement
This is the age you are supposed to retire. Assuming you don’t pay when you retire, your age of retirement minus 1 is the last time you will contribute to the plan. This calculator considers that you make all those contributions at the end of every year.
Rate of return before retirement
The yearly expected rate of return from your chosen investment plan up to the retirement.
Rate of return during retirement
The yearly expected rate of return from your chosen investment plan from the time you retire. Theoretically, this is the future rate of inflows predicted at present time. If you want to withhold your invested money exactly when you retire than this field should be left empty.
Current tax rate
The percentage rate of marginal tax payable on taxable income.
Retirement tax rate
The percentage rate of marginal tax during the retirement phase; payable on taxable income.
Expected inflation rate
The anticipated annual average rate of inflation for long-term.
Years of retirement
The expected number of years between your death and retirement.
To increase deposits with inflation checkbox
Using this option will increase your yearly payment by adjusting the inflation rate.
If savings is tax-deferred checkbox
Using this option is applicable if the earnings from your retirement plan are put into a tax-deferred account.