What does retirement look like for you?
Doing some simple calculations illustrates the power of numbers relating to those years in your future.
We’ll look at what retirement will hold in store for those just beginning or participating in an organized plan for a 30 year old, 40 year old and 50 year old. We will assume an annual investment return of 7% during the working years and 4% during retirement. The following figures do not include Social Security.
At the current age of 30, with a retirement age of 67
a current annual household income of $50,000.00
annual retirement saving of 8% of their income
with an estimated yearly income increase of 2%
$10,000.00 in retirement savings currently
and with an income required of 90% of their preretirement income
35 years of retirement income
$864,964.00 total retirement package. $91,795.00 income per year. An annual inflation rate of 2.9%
Retirement savings will expire at the age of 77
At the current age of 40, with a retirement age of 67
a current annual household income $50,000.00
annual retirement saving of 8% of their income
with an estimated yearly income increase of 2%
$10,000.00 in retirement savings currently
and with an income required of 90% of their preretirement income
35 years of retirement income
$388,788.00 total retirement package. $75304.00 income per year. An annual inflation rate of 2.9%
Retirement savings will expire at the age of 72
At the current age of 50, with a retirement age of 67
a current annual household income $50,000.00
annual retirement saving of 8% of their income
with an estimated yearly income increase of 2%
$10,000.00 in retirement savings currently
and with an income required of 90% of their preretirement income
35 years of retirement income
$155,872.00 total retirement package. $61,775.00 income per year. An annual inflation rate of 2.9%
Retirement savings will expire at the age of 69
If the 30-year-old had $20,000 in their current retirement package and could direct 10% of their income toward their retirement, they would have $1,166,984.00 to work with and continue to take annual income of 91,795.00 however this yearly income would extend to the age of 81
For a free calculation based on your age, income, retirement savings, etc. please email us
