Canadian Retirement Income Calculator - Canada.ca

We set the default rate for before retirement at 5. 75% and rate of return after retirement at 4. 0% with a legitimate series of 0% to 20% for each. This Piece Covers It Well need to pick assumptions-- or variety of presumptions-- that are right for you based upon your specific scenarios. Replacement Rate Calculation The amount of cash from your retirement advantages (e.

CSRS, FERS, Social Security), annuities from TSP and other cost savings, and any post-retirement profits you went into are summed over the anticipated years in retirement. The amount of money you would have made (with forecasted raises) if you continued to work instead of retire is also summarized over the exact same time period.

If the calculated replacement rate is less than the desired replacement rate, the TSP contribution rate is increased bit by bit (0. 25% of salary) till the computation comes out to the replacement rate goal or it strikes the tax deferral limitation (currently $17,000). If that isn't sufficient cash, the Federal Ballpark E$ timate does the exact same with the non-TSP savings up until the combined overall is enough to hit your replacement rate objective, or an absolute limitation of 50% of income is reached.

What this indicates is that the FBE will take the number of years you anticipate to reside in retirement and balance the replacement rate throughout that time. The Federal Ballpark E$ timate uses 70% as a default rate, however will enable you to select any rate in between 20% and 120%. Replacement Rate Desired The replacement rate is the part of your pre-retirement income that will be changed by your retirement earnings.