1. What is the Projected Retirement Income Calculator?

The Projected Retirement Income Calculator estimates your potential annual income during retirement based on your current savings, expected growth rate, retirement duration, and any additional benefits you expect to receive.

2. How Does the Calculator Work?

The calculator uses the following equation:

Where:

• \( Savings \) — Current retirement savings in USD
• \( r \) — Annual growth rate (as decimal)
• \( n \) — Number of years in retirement
• \( Benefits \) — Annual benefits from other sources (pensions, Social Security, etc.)

Explanation: The equation calculates how your savings grow over time, then distributes them evenly across your retirement years while adding any additional benefits you expect to receive.

3. Importance of Retirement Income Planning

Details: Proper retirement planning helps ensure financial stability in your later years. This calculator provides a simplified projection to help you assess whether your current savings and growth assumptions will meet your retirement income needs.

4. Using the Calculator

Tips:

• For savings, include all retirement accounts (401k, IRA, etc.)
• Use a conservative growth rate (typically 4-6% for balanced portfolios)
• Estimate your retirement duration (often 20-30 years)
• Include all expected annual benefits (Social Security, pensions, etc.)

5. Frequently Asked Questions (FAQ)

Q1: How accurate is this projection?
A: This is a simplified estimate. Actual results will vary based on market performance, inflation, and spending patterns.

Q2: Should I include my home equity in savings?
A: Only if you plan to use your home equity for retirement income (through downsizing or reverse mortgage).

Q3: What's a reasonable growth rate assumption?
A: Historically, a 60/40 stock/bond portfolio averages 6-7% before inflation. Use 4-5% for more conservative estimates.

Q4: How do I account for inflation?
A: You can either use real (inflation-adjusted) returns for growth rate or calculate in today's dollars and adjust the result for expected inflation.

Q5: What about taxes and healthcare costs?
A: This calculator shows gross income. You'll need to account for taxes and expenses separately in your planning.