This calculator uses averages based on real statistical data to predict the
future. It not only calculates the result but also demonstrates the
actuarial(statistical) components used to get that result.
What are those factors?
They account for the growth in your salary (assuming average numbers of course)
Your life expectancy
Growth rate of your investments - 8%.
It is similar to our other life retirement needs calculators
with the addition of using existing statistical averages on salary and life expectancy.
To begin taking charge of the quality of your future, find out how much income
you'll need in retirement to maintain your current standard of living. This
worksheet can help you.
If you're like most Americans, you may have to provide almost half of the income
you'll need for the more than 20 years you may live in retirement.
Four factors from these tables are needed to calculate your retirement income
In this exercise, the numbers ("factors") will be used to project changes in
your income savings over time.
* These figures assume a hypothetical investment rate of 8% and
are based on assumptions for illustrative purposes only; actual investment
returns will vary. Assumes an average salary increase of 4%.
** This percentage, which is used in many projections for
retirement income, assumes a conservative scenario of retirement income needs.