Estimate the amount of time of your savings will last based on what you have to start, your monthly income deposits, and your monthly expense withdrawals.
This calculator assumes that you have a retirement savings account and you receive a monthly fixed income from, let's say, social security. Also, you have monthly expenses that are greater than what you receive from social security so you have to withdraw from your retirement savings on a monthly basis. You want to know how long your savings will last you.
Enter the current account balance or the amount you will deposit to start the retirement account.
Annual Interest Rate
Enter the Stated Rate. This calculator will compound interest monthly. For example, an annual interest rate of 7% will be approximated as a monthly rate of [ 0.07/12 months = 0.00583 or 0.583% ]. Interest for this calculator is calculated at the end of each month so will include the net account amount after any withdrawals for that month.
Withdrawal Amount (Monthly Expenses)
Enter the total of your monthly expenses that you will withdraw from this account.
Let's say you have a starting balance of $75,000 at 4% interest and you know your monthly income will be $1,800. You want to know how much you can withdraw on a monthly basis to make your saving last at least 10 years. Try entering withdrawal amount as $2,800 per month and you'll see that savings will last 8 Years and 1 Month. Keep lowering the expense amount until the time is what you want. At $2,550 the savings will last about 10 Years and 1 Month.
What Can an Annuity Calculator Tell You?
Find out how much lifetime income your savings could buy. Or, if you know how much income you need, learn what it will cost upfront.
How Much Lifetime Income do You Really Need?
Instead of calculating your annuity needs alone, you may want to consider all aspects of your retirement situation.
The Annuity Retirement Calculator can help you assess your annuity decision. This tool will allow help you to make a decision with your overall retirement income plan in mind.
What is an Annuity?
An annuity is a financial product sold that provides a stream of payments over time to the purchaser (annuitant).
There are a lot of different flavors of annuity contracts and they can be complex. Yet, there are many benefits to the user. A Simple Annuity by American Income Fund removes all the confusion and complicated choices available by only offering you what is necessary to avoid outliving your savings.
A lifetime annuity is a financial product you can buy with a lump sum of money. In return, you will receive income for the rest of your life.
A lifetime annuity guarantees payment of a predetermined amount for the rest of your life. This is different from a term annuity which only pays you for a fixed amount of time.
Immediate Lifetime Annuity
An immediate annuity provides income to the purchaser that starts as soon as they deposit a lump sum.
The payments last for:
The lifetime of the purchaser
The lifetime of the purchaser and his or her spouse (or joint annuitant)
Some set amount of time (5, 10, 20 years)
This is also referred to as a Single Premium Immediate Annuity (SPIA).
Many people roll over tax qualified funds into a "tax-deferred" immediate annuity. Often the user only pays taxes when they receive the monthly payment (so you pay taxes over time). They only pay taxes on their tax qualified deferred income payment.
A fixed annuity pays a fixed rate of return. It is typically invested in lower risk fixed income products. For example, government securities and corporate bonds.
Enter the monthly amount you think you will need from an annuity to cover a gap in your retirement income. The Annuity Calculator will show what it would cost to buy this level of monthly income.
Enter the savings you have available that you could convert to an annuity. The Annuity Calculator will tell you how much monthly income it would produce for you.