Our retirement calculator provides the optimal mix between user friendliness and detail.
Our calculator is prepopulated with sample data so you can hit the ground running in trying out the calculator. We also allow you to save your data so that you can work on it and update it over time without having to re-enter your data. Once you save the data you will see a Click-Me button at the top to reload. Remember to save any changes you make.
Some of the inputs we use may require explaining:
1) Gender and Current Age: These are both used to calculate mortality. The mortality age is used to assess how large your estate will be when you pass as well allowing you to ensure that you don’t outlive your assets and savings. We use tables provided by the US social security department to estimate mortality.
2) Mortality: Is a calculated field as noted above, however you can override the Mortality assumptions in the Additional Optional Assumptions section at the bottom of the calculator.
3) Life Events: Life events are additional assumptions that allow you to account for certain finite expenses such as a child’s college. We allow you to set up to four life events. You need to enter the number as a positive number. Future releases will allow you to include positive life events such as an inheritance.
4) Additional Optional Assumptions: There are three additional assumptions you can adjust from our recommended assumptions. TPE sets these assumptions, but you are free to adjust them. These inputs include investment returns, inflation, and mortality. Further, we reduce the investment returns by an estimated blended tax rate.
5) Taxes: Though we do adjust investment returns for tax rates, we don’t adjust your regular income inputs for taxes. It’s important that you consider taxes in your inputs for these items. For example, income inputs should be reduced by your estimated tax rate (you can use our tax calculator to give you a very rough estimate of your average tax rate). In addition, pre-tax retirement funds such as 401Ks and IRAs will be entirely taxed upon distribution. This tax should be considered when assessing the output. Future versions of the TPE Retirement Calculator will incorporate these items
About calculator outputsWe output four variables – Net worth at retirement, final estate - which is a nicer way of saying net worth upon death, and mortality age, which will either be TPE’s calculation or your own override. We also output a chart allowing you to see your net worth growth and your income and expenses before and after retirement. This chart is a simplification as it doesn’t include the investment income earned or the life events. The net worth will change by the difference between income and expense (before and after retirement), the effect of life events, inflation and investment returns.
It projects your net worth at retirement, your final estate (your net worth when you pass away), and an assumed mortality age, along with a chart showing your net worth and income/expenses before and after retirement. It comes prepopulated with sample data, and you can save your own inputs to update later.
It uses your gender and current age against mortality tables from the U.S. Social Security Administration to estimate a mortality age, used to size your estate and check that you don't outlive your savings. You can override this in the Additional Optional Assumptions section if you'd rather use your own estimate.
Life events let you account for finite future expenses, like a child's college costs, by entering up to four of them as positive numbers. Future versions plan to support positive life events like an inheritance as well.
TPE sets default assumptions for investment returns, inflation, and mortality, with investment returns already reduced by an estimated blended tax rate — but you're free to override any of these in the Additional Optional Assumptions section.
Only partially — investment returns are already reduced for an estimated tax rate, but your regular income inputs are not automatically tax-adjusted. You should reduce income inputs by your estimated tax rate yourself (the Tax Estimator can give you a rough rate), and remember that pre-tax accounts like 401(k)s and IRAs will be fully taxed on distribution.
