Retirement Matters
Retirement Calculators
- How much do I need?
- How will my savings grow?
- Will I be able to retire?
- Future Value Calculator

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Saving for retirement

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 Helpful Hints: READ FIRST
 
•  To make the most of this calculator, you'll need the following information:
  1)  The amount you've already saved within your U of M retirement plans.
  2)  The amount you've already saved outside of your U of M retirement plans.
•  Have a calculator handy for minor arithmetic.
 
•  Any values you see are defaults and may be changed to fit your individual situation.
 
•  Some fields (in color) provide links to additional helpful information.
 
•  This calculator is best viewed using the latest version of Microsoft's Internet Explorer or Netscape. Click here for more information on browser requirements.
 
•  You can print the page to save for future reference, but your data will not be saved online.
 

 

Will I be able to retire?

This interactive retirement calculator provides you with a quick way to determine if you will meet your monthly income goal from your retirement savings. The calculator uses a number of factors which you input based on your individual situation. Of course, you can change the scenarios and use the calculator over and over again. In fact, it is a good idea to periodically use this calculator to evaluate your progress while saving for retirement. The calculator cannot guarantee you will achieve your retirement goals nor can it ensure that your retirement account(s) will achieve any specific return.

Please enter the following information:  
Current Age  
Years in Retirement  
Monthly Income Goal (total)  
  less monthly Social Security benefit Number of years you will work part-time:
  less monthly income from part-time work
  less monthly MSRS benefit  
  less monthly income from an annuity  
  less other monthly income  
Monthly income from retirement savings needed to meet income goal      
 
  Funds you wish to leave at death  
 
Retirement savings today (your account balances):   Other U of M Plan Providers
  Faculty 403(b) (Prior to July 1, 1989)  
  Faculty 401(a) (After July 1, 1989)  
  Optional 403(b)  
  457 Deferred Comp  
  Other
(e.g. SEP, IRA, Roth IRA, spouse/partner savings, any other pre- or post-tax retirement savings)		  
Total retirement savings today      
Rate of Return You Expect to Earn in Retirement
(whole percent between 0% and 10%)

 
   
Results

 
Sources of Retirement Income Monthly Income(1)
Retirement Savings(2),(3)  
Social Security Benefit  
MSRS Benefit  
   
Income from an Annuity  
Other Income  
TOTAL  
   
(1) All amounts shown are assumed to increase with inflation over time.
 
 
 

 
Assumptions Used:
•  The projections or other information generated by this tool regarding the likelihood of various investment outcomes are hypothetical in nature, do not reflect actual investment results and are not guarantees of future results.
•  Taxes are ignored and all amounts are assumed to be pre-tax, with the exception of Required Minimum Distributions (see RMD notes below).
•  Future savings contributions are ignored.
•  Beginning of month withdrawals.
•  Monthly income amounts, both entered by user and shown in results, are assumed to be first month amounts, with future amounts increasing with inflation.
•  Inflation is factored into this calculation and is assumed to be 3% per year, based on the long-term average of the Consumer Price Index (CPI-U) from the U.S. Department of Labor.
•  The rate of return you entered is assumed to be constant throughout your retirement period. In reality, a fluctuating actual rate of return over the period may result in better or worse results, even if the average actual annual return is the same as the constant return assumed in the projection.
Required Minimum Distributions (RMD’s)
The law mandates that you begin to take a required minimum distribution (RMD) annually once you reach 70-1/2, and these distributions be included in your taxable income.
The Retiree Retirement Planner accounts for RMD’s using the following assumptions:
•  Assumes that the RMD rules apply to all of your Retirement Savings.
•  The annual RMD amount is distributed in 12 equal monthly payments.
•  Assumes that you are currently 6 months past your last birthday. For example, if you are currently 69, it assumes that you are 69-1/2 so that you will reach age 70-1/2 next year, and this calculator will begin applying RMD rules one year from now.
•  The Uniform Lifetime Table is used to calculate the RMDs. This assumes that your spouse is your primary beneficiary and is less than 10 years younger than you, if you are married, or that the primary beneficiary is your estate, if you are single.
•  There is only one primary beneficiary for the entire Retirement Savings. Secondary beneficiaries are not considered.
•  If the Retiree Retirement Planner estimates an RMD that exceeds the retirement income from the Retirement Savings, the excess RMD amount is treated as if it were invested in a taxable account for later withdrawal. The assumed tax rate used is 25%. This taxable account is assumed to earn the same constant rate of return as the Retirement Savings.
 

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