Calculate the savings needed to fund your desired monthly pension during retirement
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This calculator estimates the lump sum needed at retirement to fund your desired monthly pension over your expected retirement years.
The calculation uses the present value of an annuity formula:
Where:
This calculation assumes a fixed annual return rate during retirement and that you'll withdraw a consistent amount each month.
This calculator provides an estimate based on your inputs. Actual retirement needs may vary due to:
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Learn MoreYes, decimals are allowed for the monthly pension amount and expected return rate. For example, you can enter 2500.50 for monthly pension or 5.5 for expected return rate.
Set your current age equal to your retirement age to calculate the needed savings for immediate retirement. The calculator will then show the lump sum required to start drawing your pension immediately.
No, this calculation assumes fixed amounts without inflation adjustments. For a more accurate estimate, you might want to use a real rate of return (nominal return minus inflation rate) in your calculations.
The calculator requires that retirement age is greater than or equal to current age. If you enter a retirement age lower than your current age, you'll receive an error message prompting you to correct the input.
A higher expected return rate reduces the lump sum needed because your savings will generate more investment income during retirement. Conversely, a lower expected return rate means you'll need a larger lump sum to generate the same monthly income.
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