Retirement Pension Planner

Do you know what it will take to create a secure retirement? Use this calculator to help you create your retirement plan. View your retirement savings balance and your withdrawals for each year until the end of your retirement. Social security is calculated on a sliding scale based on your income. Including a non-working spouse in your plan increases your social security benefits up to, but not over, the maximum.

This Financial Calculator requires a Browser with Java Support 

Definitions

Current age
Your current age.

Age of retirement
Age you desire to retire.

Household income
Your total household income. If you are married, this should include your spouse's income.

Current retirement savings
Total amount that you currently have saved toward your retirement. Include all sources of retirement savings such as 401(k)s, IRAs and Annuities.

Pre-retirement rate of return
This is the annual rate of return you expect from your investments before taxes. The actual rate of return is largely dependant on the type of investments you select. For example, from January 1970 to February 2003, the average compounded rate of return for the S&P 500, including reinvestment of dividends, was approximately 11%. Savings accounts at a bank pay as little as 1% or less.  It is important to remember that future rates of return can't be predicted with certainty and that investments that pay higher rates of return are subject to higher risk and volatility.  The actual rate of return on investments can vary widely over time, especially for long-term investments.  This includes the potential loss of principal on your investment.

Post-retirement rate of return
This is the annual rate of return you expect from your investments during retirement. It is often lower than the return earned before retirement due to more conservative investment choices to help insure a steady flow of income. For example, from January 1970 to February 2003, the average compounded rate of return for the S&P 500, including reinvestment of dividends, was approximately 11%. Savings accounts at a bank pay as little as 1% or less. It is important to remember that future rates of return can't be predicted with certainty and that investments that pay higher rates of return are subject to higher risk and volatility. The actual rate of return on investments can vary widely over time, especially for long-term investments. This includes the potential loss of principal on your investment.

Percent of income to save
The percentage of your annual income you will save for your retirement goals.

Expected salary increase
Annual percent increase you expect in your household income.

Years until retirement
Number of years before retirement.

Years of retirement income
Total number of years you expect to use your retirement income.

Percent of income at retirement
The percent of your working year's household income you think you will need to have in retirement. This amount is based on your income earned during the last year you will work. The default is 70%. You can change this amount to be as low as 50% and as high as 150%.

Is savings is tax deferred?
Check this box if your retirement savings are tax deferred. Savings in IRAs, 401(k)s, 403(b)s and Variable Annuities are examples of tax deferred retirement savings.

Current Marginal Tax Rate
Your current marginal tax rate. This is the tax rate that is applied to your retirement savings earnings if these earnings are not tax deferred.

Retirement Marginal Tax Rate
Your expected tax rate at retirement. This is the tax rate that is applied to your retirement savings earnings. If this savings is not tax deferred this rate is applied as the earnings are accrued. If your savings is tax deferred, the tax rate is note applied until you make a withdrawal.

Are you married?
Check this box if you are married. Married couples have a higher maximum social security benefit than single wage earners.

Include social security?
Check this box if you wish to include social security benefits in your retirement planning.