Disclosures:

These illustrations are hypothetical and do not represent the return on any particular investment. The rate is not guaranteed. All investing is subject to risk, including the possible loss of the money you invest.

RETIREMENT CALCULATOR

  1. Contributions to retirement accounts are assumed to grow at the same rate as salary growth.
  2. To estimate retirement income, we first project how much you’ll have saved by the time you reach retirement.  Then, we use the “4% rule” — that is, we assume that you can draw 4% of your initial nest egg each year in retirement and be reasonably confident that you won’t outlive your savings.
  3. Income replacement percentages are calculated on a pre-tax basis.  Projected retirement income is discounted by the input inflation factor to today’s dollars, this is done in order to compare projected retirement income to your current income.

HOW MUCH SHOULD I SAVE CALCULATOR

  1. It is assumed that Social Security will replace 25% of your income and that you will need to replace at least 80% of your current pre-tax income.
  2. Pre-retirement annual rate of return is assumed to be 7%, and post-retirement annual rate of return is assumed to be 4%.  Inflation and salary annual growth rates are assumed to be 2.5%.

SOCIAL SECURITY BREAK-EVEN CALCULATOR

  1. It is assumed that Social Security will provide a 1.5% cost of living adjustment (COLA) annually.