This tool helps you estimate your potential retirement income based on your current savings and future contributions.
How to Use the Retirement Income Estimator
To use this calculator, please fill in all the fields in the form.
- Current Age: Enter your current age.
- Planned Retirement Age: Enter the age when you plan to retire.
- Current Savings: Provide the current amount you have saved for retirement.
- Monthly Contribution: Input how much you will contribute monthly to your retirement fund.
- Expected Annual Return: Enter the expected annual return rate on your investments.
- Annual Withdrawal Rate in Retirement: Provide the percentage of your savings you expect to withdraw annually in retirement.
How It Calculates
This calculator estimates the future value of your retirement savings based on the values entered. It then calculates what you can withdraw annually and monthly in retirement, based on the percentage you specified.
Limitations
This calculator provides an estimate based on the inputs you provide. Actual savings and withdrawals will depend on various factors including actual investment returns, inflation, and changes in your financial circumstances. This tool should be used for educational purposes only and not as financial advice.
Use Cases for This Calculator
Estimate Your Retirement Income
With the OMERS retirement income estimator, you can input your current age, planned retirement age, and expected pension contributions to get a clear picture of your financial future. By adjusting these variables, you can see how different retirement ages and contribution amounts impact your estimated income.
Understand the Impact of Early Retirement
If you’re considering retiring earlier than planned, the OMERS estimator allows you to calculate how this decision will affect your income. By entering various early retirement ages, you can assess potential reductions in benefits and plan accordingly.
Factor in Additional Income Streams
Are you planning to have other sources of income after you retire? The estimator lets you explore the effect of additional income streams, like part-time work or investments, on your overall retirement income, helping you create a more comprehensive financial plan.
Visualize Different Contribution Scenarios
Use the estimator to experiment with different contribution levels to your OMERS pension plan. By simulating higher or lower contributions, you’ll quickly see how your retirement income can change, empowering you to make informed financial decisions.
Adjust for Inflation
The OMERS estimator provides options to account for inflation over your retirement period. By adjusting for anticipated inflation rates, you can better predict the real value of your retirement income, ensuring that your purchasing power remains intact throughout your retirement years.
Evaluate Post-Retirement Expenses
Input your expected monthly expenses in retirement to see how they align with your estimated income. By calculating your budget against projected income, you can identify any potential shortfalls and make necessary adjustments well in advance of retirement.
Analyze the Impact of Survivor Benefits
If you’re concerned about your spouse’s financial security after your passing, the estimator helps you understand how survivor benefits affect retirement income. By checking various scenarios, you can make better-informed decisions about pension benefits and estate planning.
Plan for Healthcare Costs
Healthcare expenses can significantly affect your retirement budget. Use the estimator to gauge how anticipated healthcare costs, such as premiums and out-of-pocket expenses, will impact your overall financial picture post-retirement.
Project Potential Tax Implications
Explore the tax implications of your retirement income through the OMERS estimator. Understanding how different income sources will be taxed allows you to strategize better, ensuring that you maximize your net income while complying with tax obligations.
Prepare for Lifestyle Changes
Retirement often means adjusting your lifestyle, whether it’s traveling more or downsizing your home. Use the estimator to project how these lifestyle changes will affect your retirement income and ensure you still meet your desired quality of life.