Pension Estimator
Excel 97 spreadsheet
includes pension, mortgage, savings and annuity calculator
Can You Afford to Retire at 55 or 65?
Business
& Investing
Books from Amazon
A feast is made for laughter, and wine makes life merry, but money is the answer for everything. Eccl 10:19
Keep falsehood and lies far from me; give me neither poverty nor riches, but give me only my daily bread. {9} Otherwise, I may have too much and disown you and say, 'Who is the LORD?' Or I may become poor and steal, and so dishonor the name of my God. (Prov 30:8-9 NIV)
One of my interests is actuarial calculations and I have produced a very simple but powerful Excel 97 worksheet with a Pension estimator based on a 401k plan. Use at your own risk. It allows you to take inflation into account and assumes that you can buy an escalating annuity on retirement which uses up the capital. It will also work out your life expectancy on retirement for men or women. You should be able to use it to estimate how much you need to save now to retire on a reasonable pension later. I have also included a basic mortgage, savings and annuity calculator.
Example:
| Amount in 401k now | $50,000 | |
| Age now | 40 | |
| Current monthly 401k savings | $250 | |
| Current annual investment growth (%) | 12 | |
| Annual increase in amount saved/year (%) | 4 | |
| Planned retirement age | 60 | |
| Total capital available on retirement | $761,884 | |
| Interest rate at retirement (%) | 6.5 | |
| Increase in annuity per year (%) | 3 | |
| Men | Women | |
| Estimated life expectancy (years) | 18.4 | 22.9 |
| Estimated annual income before tax | $58,060 | $49,922 |
| Inflation rate (%) | 4 | |
| Value of annual pension in Todays money | $26,498 | $22,784 |
Download Pension Estimator for later or open it in Excel now (73k). It is Free and includes pension, mortgage, savings and annuity calculator
Books from Amazon:
- How to Retire Early and Live Well With Less Than a Million Dollars by Gillette Edmunds
- The Wall Street Journal Guide to Understanding Money & Investing by Kenneth M. Morris, Virginia B. Morris, Alan M. Siegel
- Get a Life : You Don't Need a Million to Retire Well by Ralph E. Warner
- Life Begins at Fifty : A Handbook for Creative Retirement Planning by Leonard J. Hansen
- IRAs, 401(K)s & Other Retirement Plans : Taking Your Money Out by Twila Slesnick, John C. Suttle
- Retire Early and Live the Life You Want Now : A 10-Step Plan for Reinventing Your Retirement by John F. Wasik
- The Wall Street Journal Guide to Planning Your Financial Future : The Easy-To-Read Guide to Planning for Retirement by Alan M. Siegel, Virginia B. Morris, Kenneth M. Morris
- A Commonsense Guide to Your 401(K) (Bloomberg Personal Bookshelf) by Mary Rowland
- 1,001 Ways to Save, Grow, and Invest Your Money by David E. Rye
Useful websites:
More retirement planning software
- Retirement Planner 2001 , Torrid Technologies, Inc., ($25)
Pension guidelines:
- Start saving for retirement when you are young in your twenties
- Aim to put at least 5% of your income into a pension scheme
- When you are young you can go for high risk investments like the stockmarket
- As you approach retirement you should reduce your risk
- You need to save (much) more if you plan to retire early
- Spread your investment risks, don't put all your eggs in one basket
Historically, the stock market, or equities have returned about 10.5 % total earnings over long periods. Bonds have returned about 6% over long periods.
If you have suggestions to make the spreadsheet more useful then let me know. I have done my best to make it as simple as possible.
rossuk12@hotmail.com
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