This page allows you to predict the percent of your current and future salary you will need to SAVE in order to achieve your desired retirement income. This is based on some information about you, and assumptions you must make, as follows:
Your current age
Your current annual compensation (or earned income for a sole proprietor)
The current balance of your IRA's, 401k's, and any other retirement savings accounts
Your desired retirement age
Your desired annual retirement income
Assumed annual rate of salary increase
Assumed annual rate of investment income
The program will return the average annual PERCENTAGE OF YOUR PAY that you will need to save each year in order to achieve your desired annual retirement income.
(1) Make sure the Current Age you enter is LESS than the Retirement Age you enter.
(2) If the resulting percent of pay is more than you think you can afford, you should redo the calculation with a higher rate of pay increase, higher investment return, or an older retirement age.
(3) If your employer matches a portion of your 401k deferrals, remember that you can deduct that percent from the result, leaving only the amount you need to save.
If you have any questions after performing your retirement savings estimate, call us here at ALI Actuarial & Retirement Plan Services, 919-357-2267, or by email to firstname.lastname@example.org.