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 to Use The Annuity Calculator
Enter the current account balance or the amount you will deposit to start the retirement account. Start with a minimum of $100,000 to ensure you don't outlive your savings.
Length of Annuity = How long would you like to earn income. Start with 5, 10 or 20 yearsand you can always try 50 years.
Annual Growth Rate
Enter 7% to ensure longevity risk is minimized. You can try inputting 3-10% to see scenarios for other rates of returns.
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.
Enter the total of your monthly expenses that you will withdraw from this account. Input your desired rate of withdrawal needed monthly/annually.
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.
How long will my retirement savings last?
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. A 7% rate of return could make your savings last up to 20 years.
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 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 complications by only offering you what is necessary to avoid outliving your savings.