Assumptions in the calculation include:
Annual rate of return during accumulation = 7%
Annual rate of return during retirement = 4%
Annual rate of inflation during all years = 3%
Annual contributions set to 15% of salary for initial calculation, or 0 if current age is at or above retirement age
Life expectancy = 87 or current age plus 10, whichever is greater
Contributions made once per year at the end of the year
Retirement income distributions taken once per year at the beginning of the year and divided by 12 to display as monthly income
Retirement income will be $0/month if you enter a retirement age that is at or above the assumed life expectancy
The calculator provides an illustration of mathematical principles using the information that you provided along with the assumptions listed above. Taxes, early withdrawals fees, charges, or any
other factors not included in these assumptions are not considered. The calculator is not intended to provide investment advice and does not predict the performance of any investment or investment
strategy. Results are hypothetical, actual results will vary from the illustration. Bear in mind, investing involves risk, including the possible loss of principal.