Retirement Calculator
| Retirement Assumption | Assumption Description |
|---|---|
| Annual Return Rate | Investments grow at a 7% nominal annual rate, compounded annually. |
| Inflation Rate | Adjusts for expected inflation, defaulting to 2% annually. |
| Real Return Rate | Net return after inflation; ~4.9% with 2% inflation and 7% nominal return. |
| Contribution Growth | Assumes fixed monthly contributions (no annual increases). |
| Retirement Budget | Future monthly needs are adjusted for inflation to retirement age. |
| Other Income | Income like Social Security is also inflation-adjusted. |
| Tax Rate | Retirement shortfall is grossed up for taxes using your estimated rate. |
| Withdrawal Method | Uses present value of an annuity formula for total savings needed. |
| No Fees or Penalties | Does not include investment fees or early withdrawal penalties. |