It’s entirely possible that your retirement assets may need to last 25 years or longer. Calculate the amount you’ll need in order to cover your living expenses during your retirement years. Include such factors as:
- Expected retirement age
- Monthly expenses (necessities vs. luxuries)
- Total savings from all sources
- Projected income
- Lifestyle and travel plans
Use the myOrangeMoney® interactive, educational experience to see the income you may need in retirement and the estimated progress you’ve already made toward that goal, based on your current savings. Just log into your account at abaretirement.com to try it out today!
IMPORTANT: The illustrations or other information generated by the calculators are hypothetical in nature, do not reflect actual investment results, and are not guarantees of future results. This information does not serve, either directly or indirectly, as legal, financial, or tax advice and you should always consult a qualified professional legal, financial, and/or tax advisor when making decisions related to your individual tax situation.
Ms. Smith, a Program participant, looked at different saving scenarios with respect to the annual income she estimated she may need in retirement. She expects to retire at age 70 and wants to ensure she has retirement income for at least 30 years.
Depending on Ms. Smith’s account balance, her account could generate nearly $14,000 to roughly $100,000 per year.
Assumptions: This example assumes a 4% hypothetical rate of return, compounded annually, and that the individual is single. This illustration is hypothetical, is not guaranteed, and is not intended to reflect the performance of any specific investment. It does not account for taxes due upon withdrawal. Actual results will depend upon when you start saving, the number of years you invest in retirement savings, the returns of your actual investments, and other factors.