Define the income goal
The replacement-rate input converts projected final salary into a first-year retirement income target. Spending needs may be higher or lower than a percentage guideline.
Two-phase retirement plan
Connect today’s saving with tomorrow’s withdrawals
Project assets to retirement, estimate the portfolio required for your income goal, include other income, model retirement withdrawals, and identify a potential savings gap.
Plan with context
Retirement has an accumulation phase and a spending phase.
A nest-egg target is more useful when it connects today’s saving decisions with a specific retirement income, planning age, and set of return assumptions.
Count every income source
Pension, government benefits, annuity income, and other reliable cash flow reduce the amount that must come from the investment portfolio.
Separate return assumptions
The planner allows a different return during retirement, when many people choose a more conservative allocation than during their saving years.
Inflation follows you
The income need and other income are increased with inflation. A future portfolio value is also shown in today’s purchasing-power terms.
Fees reduce both phases
The same annual fee is applied during accumulation and retirement. Lower balances then produce less future growth, creating a compounding cost.
Averages hide sequence risk
Constant annual returns cannot show the danger of poor returns early in retirement. Use conservative scenarios and maintain flexibility around spending and retirement timing.
Included
Age timeline, current assets, salary-linked saving, employer contribution, salary growth, two return assumptions, fees, inflation, other income, withdrawals, and plan gap.
Not included
Taxes, account contribution limits, benefit eligibility, required distributions, healthcare, long-term care, market volatility, or estate goals.
Use it well
Run several life-expectancy, return, inflation, and income-replacement scenarios. Revisit the plan when income, savings, or retirement timing changes.