1. What is Projected Retirement Income?

Projected retirement income is an estimate of how much income your investments will generate during retirement. This calculation helps you plan whether your savings will be sufficient to cover your living expenses in retirement.

2. How Does the Calculator Work?

The calculator uses a simple formula:

Where:

• \( Investments \) — Total amount of retirement savings in USD
• \( Return Rate \) — Expected annual return rate (as decimal, e.g., 0.04 for 4%)

Explanation: This calculation shows how much annual income your investments could generate at your specified return rate.

3. Importance of Retirement Planning

Details: Proper retirement planning ensures you won't outlive your savings. This calculator helps you understand whether your current savings and expected returns will meet your retirement income needs.

4. Using the Calculator

Tips: Enter your total retirement investments in USD and your expected annual return rate as a decimal (e.g., 0.05 for 5%). Be realistic about return rates - historical stock market returns average about 7-8% before inflation.

5. Frequently Asked Questions (FAQ)

Q1: What's a reasonable return rate to assume?
A: Conservative estimates use 3-4%, moderate 5-6%, aggressive 7-8%. Remember to consider inflation.

Q2: Should I include Social Security in this calculation?
A: No, this calculates only investment income. Add Social Security separately for total retirement income.

Q3: How often should I recalculate this?
A: Annually, or whenever your investment balance or return assumptions change significantly.

Q4: What about taxes on investment income?
A: This shows gross income. Consult a tax professional to estimate after-tax income.

Q5: Does this account for inflation?
A: No, use real return rates (nominal minus inflation) for inflation-adjusted projections.