and discretionary income. For forecasts to be accurate, individuals need to precisely calculate growth of current retirement funds including Social Security, 401(k), 457, 503b, pensions, IRA’s, and annuities. In addition, it is critical that individuals understand how Social Security is awarded based on age, and penalties for early withdrawal in other retirement funds. When considering retirement, it is important to consider how long benefits are needed. According to data compiled by the Social Security Administration, a man reaching age 65 today can expect to live to 84, and a woman reaching age 65 can expect to live to 86. In addition, 25 percent of 65-year old’s will live past 90, and 10 percent will live past 95 (Social Security Administration). Concurrently, about one out of every four 65-year-olds today will live past age 90, and
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This tool is available for all age ranges, and provides visual targeting graphs as sliders are moved back and forth. However, since Social Security payouts are estimated and may change significantly before Gen X meets retirement age, and investment returns are hypothetical and not based on state of the economy, the total retirement income may not be accurate. Using the Vanguard Retirement Calculator, a 38-year-old woman with a current salary of $140,000 per year, $100,000 in an interest-bearing retirement account with an 8 percent annual return, saving 14% of an annual salary, and receiving $2870 per month in social security, would have a total of $8,335 per month in retirement benefits. According to the calculator, this individual would need approximately $8,167 to equal 70 percent of her current income in retirement. If all the data inputs remain the same, with the exception of moving the retirement age to 62, she would be short approximately
This tool is available for all age ranges, and provides visual targeting graphs as sliders are moved back and forth. However, since Social Security payouts are estimated and may change significantly before Gen X meets retirement age, and investment returns are hypothetical and not based on state of the economy, the total retirement income may not be accurate. Using the Vanguard Retirement Calculator, a 38-year-old woman with a current salary of $140,000 per year, $100,000 in an interest-bearing retirement account with an 8 percent annual return, saving 14% of an annual salary, and receiving $2870 per month in social security, would have a total of $8,335 per month in retirement benefits. According to the calculator, this individual would need approximately $8,167 to equal 70 percent of her current income in retirement. If all the data inputs remain the same, with the exception of moving the retirement age to 62, she would be short approximately