How much might you need to retire? Use this worksheet to help target a total accumulation goal.
| Example | You | |
| 1. How much is your current income? | $50,000 | |
| 2. Multiply this amount by .80. This is an estimated annual income in retirement, in today’s dollars, based on 80% of your current income. (Or enter a different amount, if you choose. Most experts suggest 70% to 100% of your current annual income.) | $40,000 | |
| 3. How much might you receive from Social Security each year, in today’s dollars? Visit to estimate your Social Security income. | $20,000 | |
| 4. How much might you receive each year from other sources, in today’s dollars, such as pension income? | $0 | |
| 5. Add lines 3 and 4. This is your total estimated annual income, in today’s dollars, from other sources. | $20,000 | |
| 6. Subtract line 5 from line 2. This is your estimated income gap, which you will need to make up from your retirement savings. | $20,000 | |
| 7. How many years until you retire? | 20 years | |
| 8. Find the corresponding factor from Table A below and enter it here. | 1.81 | |
| 9. Multiply line 6 by line 8. This is the amount that your savings will need to generate in year one of your retirement. | $36,200 | |
| 10. How long do you expect your retirement to last? | 25 years | |
| 11. Find the corresponding number from Table B below and enter it here. | 22.32 | |
| 12. Multiply line 9 by line 11. This is the target amount you may need to accumulate by the time you retire. | $807,984 |
This worksheet assumes that inflation rises at an average of 3% per year both before and during retirement. It also assumes that your investments grow at an average of 6% per year before retirement, and 4% per year during retirement. Such assumptions are hypothetical and cannot be guaranteed.
This worksheet is not meant as advice, but as a way to provide a general estimate for illustrative purposes. Your specific goal should take into consideration your total family income, your current and expected assets, and other unique circumstances. A financial professional can help you calculate a goal that is specific to your particular situation.
Table A
| Years until retirement | 5 | 10 | 15 | 20 | 25 | 30 | 35 | 40 |
| Factor | 1.16 | 1.34 | 1.56 | 1.81 | 2.09 | 2.43 | 2.81 | 3.26 |
Table B
| Years in retirement | 5 | 10 | 15 | 20 | 25 | 30 | 35 | 40 |
| Factor | 4.90 | 9.58 | 14.03 | 18.27 | 22.32 | 26.17 | 29.84 | 33.34 |
IRS Circular 230 disclosure: To ensure compliance with requirements imposed by the IRS, we inform you that any tax advice contained in this communication (including any attachments) was not intended or written to be used, and cannot be used, for the purpose of (i) avoiding tax-related penalties under the Internal Revenue Code or (ii) promoting, marketing or recommending to another party any matter addressed herein.
Prepared by Broadridge Investor Communication Solutions, Inc. Copyright 2018
