Retirement #2 – Version 10/98

This retirement calculator is for someone who is already retired or who is close enough to ignore the accumulation phase. In this calculator you will evaluate how long your assets will last under several different income levels.

Data Entry:

Money @ Retire: Enter here the money in your retirement nest egg (your investments).

Rate of Return: This is the earnings rate you want to assume on your savings plan investment.

Ann. Withdrawal: Or Annual Withdrawal. Indicate here the money you expect to withdraw from your investment money each year to make up part of your income stream.

Current Age: List your current age.

Current Year: Self-Explanatory

Annual Pension Income: If you are receiving money from any pension plans list the combined total here.

Ann. Social Security: List here your combined annual social security income.

Annual Cost of Living Raise: In this section enter the cost of living raise you expect to receive from each income source.

Next, you will see several columns that are illustrating your age each year into the future, your nest egg account balance each year, and your retirement income coming from three different sources (your investments, Pension, & Social Security). If you scan down each column you can see how your nest egg (investments) will last, as well as how each income source increases at the cost of living or inflation rate you entered at the top. You can then raise or lower any of your data entries at the top to vary the time your assets will last. This is a trial and error exercise.

In planning it is wise to take into account a worst case situation. We have therefore built this calculator to withdraw money from your nest egg as a lump sum at the beginning of each year. If you withdraw money monthly, depending on the earnings rate, your nest egg may last several more years.