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Retirement PlannerDo you know what it takes to work toward 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.
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 after taxes. The actual rate of return is largely dependent on the type of investments you select. From January 1970 to December 2005, the average compounded rate of return for the S&P 500, including reinvestment of dividends, was approximately 11.4% per year. During this period, the highest 12-month return was 61%, and the lowest was -39%. 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.
- Rate of return during retirement
- This is the annual rate of return you expect from your investments during retirement after taxes. It is often lower than the return earned before retirement due to more conservative investment choices to help ensure a steady flow of income. The actual rate of return is largely dependent on the type of investments you select. From January 1970 to December 2005, the average compounded rate of return for the S&P 500, including reinvestment of dividends, was approximately 11.4% per year. During this period, the highest 12-month return was 61%, and the lowest was -39%. 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 contribute
- 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 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. A common measure of inflation in the United States is the Consumer Price Index (CPI), which has a long-term average of 3.1% annually, from 1925 through 2005.
- 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. Please note that the Social Security benefits could be different if your spouse worked and earned a benefit higher than one half of your benefit.
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Lincoln Investment Planning, Inc. Can Help
Today, you may no longer rely on just your company pension and Social Security to provide adequate
funds for retirement. You should consider developing a retirement investment plan that makes
maximum use of available tax benefits, so that your retirement assets will grow more quickly.
Lincoln Investment Planning, Inc. has specialized since 1968 in providing retirement planning
services. A Lincoln
Investment financial representative looks forward to working with you to explore your retirement savings opportunities.
Information and interactive calculators are made available to you as self-help tools for your independent use and are not intended to provide investment advice. We cannot and do not guarantee their applicability or accuracy in regards to your individual circumstances. All examples are hypothetical and are for illustrative purposes. We encourage you to seek personalized advice from qualified professionals regarding all personal finance issues.
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