1. What is the Projected Retirement Income Calculator?

The Projected Retirement Income Calculator estimates your potential annual retirement income based on your current savings, expected growth rate, investment period, and planned withdrawal rate. This follows the Bankrate methodology for retirement planning.

2. How Does the Calculator Work?

The calculator uses the formula:

Where:

• \( Initial \) — Initial investment amount in USD
• \( r \) — Annual growth rate (as decimal)
• \( n \) — Number of years until retirement
• \( Withdrawal Rate \) — Annual withdrawal rate (as decimal)

Explanation: The formula calculates the future value of your investment and then determines what annual income you could withdraw from it.

3. Importance of Retirement Income Projection

Details: Accurate retirement income projection helps in financial planning, determining savings goals, and ensuring you don't outlive your retirement funds.

4. Using the Calculator

Tips: Enter your current retirement savings, realistic annual growth rate (typically 4-7% for balanced portfolios), years until retirement, and a sustainable withdrawal rate (often 3-4%).

5. Frequently Asked Questions (FAQ)

Q1: What's a realistic annual growth rate?
A: Historically, stock markets return 7-10% annually, but more conservative estimates use 4-6% to account for inflation and market volatility.

Q2: What withdrawal rate is considered safe?
A: The 4% rule is common, but some planners recommend 3-3.5% for longer retirements or more conservative approaches.

Q3: Should I include Social Security in this calculation?
A: This calculator shows only investment income. Add expected Social Security separately for total retirement income.

Q4: How often should I recalculate?
A: Annually, or whenever your financial situation changes significantly (inheritance, market changes, etc.).

Q5: What if I have multiple income sources?
A: Calculate each source separately and sum them for total projected income.