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RETIREMENT CHART


Just as physical and mental fitness are important to healthy aging, so is financial well-being. Many people who are retiring at at 60 or 65 may have another 20 to 30 years to live--and they may be living on a fixed income. Therefore, it's very important that people take a hard look at their finances and goals.

Money magazine has developed a way to calculate how much of your savings you can afford
to spend monthly once you retire.



How much will you be able to spend when you retire?
This worksheet shows you how much of your savings you can afford to spend in retirement each month, no matter when you retire, and still have the money to last as long as you do. Assumptions: Inflation will average 4.5% a year; your savings will grow by 7% annually after taxes; you will live to age 92 (10 years beyond the life expectancy of the average 65-year old); and you will leave little or nothing to your heirs. All amounts are in today's dollars.
Line #
Question/Calculation
Enter Result Here
1
Your annual Social Security benefit at retirement age
(call 800-772-1213 for a projection):
 
2
Your expected annual pension income
(consult your employee benefits counselor for an estimate):
 
3
Total value of all your savings and investments,
including an lump-sum distributions, at retirement:
 
4
Line 3 times the appropriate factor from the table below:
 
5
Projected annual retirement income (line 1 plus lines 2 and 4):
 
6
Amount you can spend each month in retirement
(line 5 divided by 12):
 


Retirement Age
Factor
Retirement Age
Factor
55
0.0401
63
0.0471
56
0.0408
64
0.0483
57
0.0415
65
0.0495
58
0.0423
66
0.0509
59
0.0431
67
0.0524
60
0.0440
68
0.0540
61
0.0450
69
0.0557
62
0.0460
70
0.0576


Information from: Healthy Aging Website


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