Retirement Funding Calculator
Determines the amount needed for retirement in today's dollars and retirement-age dollars, and calculates annual funding required to meet your retirement goal.
| Age today | |
| Retirement age | |
| Life expectancy | |
| Income today | $ |
| Wage replacement ratio | % |
| SS Full Retirement Age (FRA) Years & Months |
yrmo |
| Annual SS benefit at FRA (today's dollars) | $ |
| Age to begin taking SS (62-70) |
| Annual pension payment (today's dollars) | $ |
| Age pension payments begin | |
| Age pension payments stop | |
| Pension COLA during retirement | % |
| Current retirement savings | $ |
| Amount to leave heirs (future dollars at death) | $ |
| Expected inheritance (future dollars) | $ |
| Age you will receive inheritance | |
| One-time extravagant purchase (future dollars) | $ |
| Age of extravagant purchase |
| Rate | Pre-Retirement | During Retirement |
|---|---|---|
| Earnings rate | % | % |
| Inflation rate | % | % |
| Annual savings increase rate | % | |
| Today's Dollars | Dollars at Retirement | |
|---|---|---|
| Goals | ||
| Amount needed for retirement | - | - |
| Amount to leave to heirs | - | - |
| One-time extravagant purchase | - | - |
| Total needed for goals | - | - |
| Sources of Funds | ||
| Less: Social Security | - | - |
| Less: Pension | - | - |
| Less: Inheritance | - | - |
| Less: Current retirement savings | - | - |
| Total sources of funds | - | - |
| Net amount to be funded | - | - |
| Ordinary Annuity (level payments) | |
| Annual funding at end of each year | - |
| Serial Payment | |
| Required savings at end of year 1 | - |
| Required savings at end of year 2 | - |
| Monte Carlo Inputs | During Retirement |
|---|---|
| Return standard deviation * | % |
* Standard deviation defaults based on historical data: 10% reflects a ~50-60% equity / 40-50% bond allocation typical post-retirement. S&P 500 historical std dev ~15-17%; 60/40 portfolio ~10-11%; 100% bonds ~5-7%.
Monte Carlo simulates 1,000 independent trials starting at retirement with the required portfolio balance. Each year's return is drawn from a normal distribution. Success = portfolio never depletes before life expectancy. Results show the range of possible outcomes — not a guarantee of future performance.
| Scenario | Annual Funding | % of Income | Feasibility |
|---|
1) Retirement income is treated as an annuity due - payments begin at the start of each period.
2) SS benefits adjusted for early/late claiming: 5/9% reduction per month for first 36 months before FRA, 5/12% beyond; 8%/year credit for delay past FRA up to age 70.
3) Bequest, inheritance, and extravagant purchase are nominal future dollars discounted at nominal earnings rates.
4) Serial payments grow at the savings increase rate each year.
5) Feasibility: less than 25% of income = feasible; 25-40% = stretch; greater than 40% = not feasible.
6) For educational purposes only. Consult a financial advisor for personalized planning.