Pre-Enrollment Retirement Path

First, enter the percent of income you would like to replace at retirement and all other parameters; then click calculate.

Goal : % Years to Retirement: 
Monthly Contributions (EE):$ Current 401(k) Balance:$
Monthly Employer Contributions (ER):$ Annual Pay:$
Calculate
 

Before enrolling in the 401k plan, you can determine your retirement goal by using this model. Whatever contribution amount you select will calculate to be a percentage of your projected compensation at retirement that you can replace utilizing your accumulated account balance. This calculation also includes your estimated social security benefit as a credit against what you save over the years. Each input blank can be changed at will to provide a complete range of retirement alternatives. Use this model as a guide when completing your enrollment form.

Mathematical modeling by Dr. Dragan Radulovic, Ph.D. Mathematics.
Assumption footnote:
  • The inflation rate affecting your projected salary and social security benefit, all along the retirement path, is 3%.
  • Your account balance is projected to earn 7% per year and your current salary is expected to increase at the rate of 3% per year.
  • You may credit your current 401k balance displayed above with other, outside investment accounts by increasing the amount displayed accordingly. This will give you a more complete retirement picture and reduce the amount you need to contribute.
  • Your estimated social security benefit is credited to your projected income goal in the math model. Ultimately, Social Security reduces the 401k balance needed to fund your retirement.
  • At age 65, an account withdrawal rate of 5% is assumed. This is the withdrawal rate most actuaries recommend.