Disclaimer

This calculator is intended for informational and educational purposes only and is not a substitute for professional financial, tax, or legal advice. Results are estimates based on user-provided inputs, and actual outcomes may vary due to factors such as market conditions, changes in tax laws, inflation, and personal financial circumstances. The use of this tool does not create a client-advisor relationship.

How the Calculation Works:

Social Security Accumulation Phase (62 to Start Age):

Annual Social Security Benefit: The calculator takes the entered monthly Social Security benefit and multiplies it by 12 to obtain the annual benefit.

Annual Growth Rate: During the accumulation phase (ages 62 to the selected start age), the annual Social Security benefits are added to the total accumulated value, which then grows by the selected annual growth rate. Each year, the portfolio is compounded by this growth rate.

Bonus Rate at Start Age:

Bonus: At the start income age, a bonus is applied to the accumulated value, based on the entered bonus percentage. This gives a total accumulated value with the bonus.

Guaranteed Income Phase (From Start Age):

Guaranteed Income: Starting at the chosen income start age, the total accumulated value (including the bonus) is multiplied by the guaranteed income rate to calculate the annual income.

Inflation-Adjusted Income: If an inflation rate is provided, the annual income is adjusted for inflation each year to reflect the decreasing purchasing power over time.

Limitations:
Results are based on simplified assumptions, including steady growth rates, constant withdrawal rates, and inflation. The tool does not account for other factors like taxes, fees, or changes in Social Security benefits due to legislative adjustments. Please consult a financial professional to review these results within the context of your complete financial plan.