Calculate Your Income at Retirement
Your income at retirement will determine how well you live when you stop actively working.
How optimistic are you that your pension fund/401k will provide for your family's financial needs one day?
The experts plan that you retire with 70% of your pre-retirement income. So if your current monthly salary is $3000, your monthly pension should be $2100.
Ironically, they are advising that you lower your standard of living at retirement. The shocking reality is that retirement plans provide about 30% of pre-retirement income as a monthly pension, and not the advised 70%!
If financial security is important to you, you must aim to retire with the same amount of money you received prior to retirement. At no stage should lack of income force you to sacrifice quality of life.
As a wealth creator, your goal is to enhance your standard of living, not drop it.
►How well will you retire?
Based on your current savings, the calculator below will give you an idea of your standard of living at retirement. The results are shown in today's value of money, as if you retired today.
- Select a currency and fill your details in the nine fields provided.
- The calculator will provide you with three results:
- Your total funds available at retirement.
- Your monthly income at retirement.
- The difference between your expected income and desired income at retirement.
- Download the attached PDF document for extra notes on how to use and interpret the results (You will need Adobe Reader to view the document).
- Do the numbers live up to your expectations? If not, consider developing a wealth creation strategy to help achieve your financial goals.
(Please note, the calculator's results are based on certain assumptions and must be used as a guide only, not as financial advice.)
| Attachment | Size |
|---|---|
| Calculate your income at retirement.pdf | 56.66 KB |
Important considerations
| 1. | Most people only start actively thinking about their financial future when it’s too late. They usually end up having to work longer, cut all unnecessary expenses and drop their standard of living. How does your situation compare? How will you close the gap between your expected pension and desired monthly income? |
| 2. | Your income at retirement is highly dependent on the growth of your investments. The higher your investment returns, the more money you will have at retirement, and the higher your pension. |
| 3. | To reach your desired income at retirement, your investments must consistently grow at a certain level. Furthermore, the required return is a lot more than what conventional products can provide. Asset selection is therefore a critical part of wealth creation. |
"Each problem has hidden in it an opportunity so powerful that it literally dwarfs the problem. The greatest success stories were created by people who recognized a problem and turned it into an opportunity." Joseph Sugarman
