Retirement Planner

Do you know what it takes to work towards a secure retirement? Use this calculator to help you evaluate 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. Please note the results of this tool do not constitute investment advice, and should not be solely relied upon when making investment decisions. You should consult an investment professional to determine which products or strategies may be appropriate for you.

This Financial Calculator requires SUN's Java™ Plug-in. If you see this message you will need to download SUN's Java™ Plug-in. This can be done automatically by clicking the yellow bar at the top of your browser and choosing “Install ActiveX Control”.

Get the Java™ Plug-in!

For more information about this Plug-in please visit: SUN's Java™ Plug-in
For more information these financial calculators please visit: Financial Calculators from KJE Computer Solutions, LLC

Definitions

Current age

Your current age.

Age of retirement

Age you wish to retire. This calculator assumes that the year you retire, you do not make any contributions to your retirement savings. So if you retire at age 65, your last contribution happened when you were actually age 64. This calculator also assumes that you make your entire contribution at the end of each year.

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.

Rate of return before retirement

This is the annual rate of return you expect from your investments before taxes. The actual rate of return is largely dependent on the type of investments you select. The assumed rates of return do not predict the results of any particular investments. 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.

Rate of return during retirement

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. The actual rate of return is largely dependent on the type of investments you select. The assumed rates of return do not predict the results of any particular investments. 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 contribute

The percentage of your annual income you will save for your retirement goals. This should reflect the total you save toward your retirement. This should include any 403(b), 401(k), or 457(b) plans and your employer contributions to these plans. It should also include any other retirement accounts such as an IRA or a Roth IRA and any retirement savings in non-retirement accounts. This calculator assumes that you make one annual contributions at the end of each year, and any withdrawals happen once per year at the end of the year.

Expected salary increase

Annual percent increase you expect in your household income.

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. You can change this amount to be as low as 50% and as high as 150%.

Expected rate of inflation

What you expect for the average long-term inflation rate.

If you are married checkbox

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

To include Social Security checkbox

Check this box if you wish to include social security benefits in your retirement planning. Social Security is based on a sliding scale depending on your income, how long you work and at what age you retire. Social Security benefits automatically increases each year based on increases in the Consumer Price Index. Including a spouse increases your Social Security benefits by 1.5 times your individual estimated benefit. Please note that this calculator assumes that you have only one working spouse. Benefits could be different if your spouse worked and earned a benefit higher than one half of your benefit. If you are a married couple, and both spouses work, you may need to run the calculation twice - once for each spouse and their respective income. This calculator provides only an estimate of your benefits.

The calculations use the 2008 FICA income limit of $102,000 with an annual maximum Social Security benefit of $26,220 per year for a single person and 1.5 times this amount for a married couple. To receive the maximum benefit would require earning the maximum FICA salary for nearly your entire career. You would also need to begin receiving benefits at your full retirement age of 66 or 67 (depending on your birthdate). Your actual benefit may be lower or higher depending on your work history and the complete compensation rules used by Social Security.

DISCLAIMER:

This calculator includes content that Genworth Financial did not write or compile. Any assumptions or opinions expressed or embodied in this item are solely those of the creator of the calculator. We do not guarantee how accurate or complete it is. The author did not create this calculator to provide investment, legal, or tax advice and we are not furnishing it to you for any such purpose; you may not use it to avoid any IRS penalty. You should ask your independent tax and legal advisors for advice based on your particular circumstances.

If this material states or implies that it was prepared or distributed to promote, market or recommend an investment plan or arrangement within the meaning of IRS guidance, or such use may be reasonably expected, then, as required by the IRS, the following also applies:

The tax information in this material was written to support the promotion or marketing of the transaction(s) or matter(s) addressed in this material.

306WC8827 0308