1. Enter your current age in box 1.
2. Enter the total of your current retirement savings in box 2.
3. In box 3, enter the amount of monthly contributions you are contributing to your retirement account. This is the amount you would be
contributing until retirement.
4. This is the annual earnings rate you expect on your retirement investments until retirement.
5. Enter the age at which you plan to retire.
6. In box 6, enter the amount you plan to withdraw in a year during retirement. This is the money you need to meet your living expenses. This amount will be adjusted for inflation each year.
7. In box 7, enter the annual rate of earnings you expect to receive on your retirement account after retirement. Once you retire, you might change your asset
mix to a more conservative asset allocation. Therefore, this rate may be different from the rate you entered in box 4.
8. In box 8, enter the annual rate of inflation you expect after retirement. Your retirement withdrawals will be adjusted for inflation for calculation purposes.
This calculator assumes fixed rates of growth and inflation during the accumulation and withdrawal phases, which will unlikely be the case. In real life, growth rates and inflation rates flutuate from period to period, and therefore, the actual results could be considerably different.