We often wonder how much retirement income we will have when we retire and where the income comes from. Here is a calculator which helps you calculate how much retirement income you will have when you retire; where the income comes from; and what you can do increase your retirement income.
You can increase your retirement income through several strategies:
- increasing the balances of your retirement accounts. Higher retirement savings balance will allow you to withdraw more from these retirement accounts. You can achieve this by increasing your monthly savings into these accounts now and choosing the right funds to invest in to earn higher interest rates.
- You might also want to find another source of income in your retirement years such as a part-time job or rental income.
- Delaying to withdraw from your social security benefit will also increase your income from this source. The qualified age to start withdraw social security benefit is 62. However, if you delay withdrawing from this source until you are 70, each year delay will increase your social security benefit by 8%.
It is important to calculate your after-tax retirement income correctly. The less income tax you have to pay, the more after-tax income you will have. Investing in a Roth IRA account or an Indexed Universal Life Insurance (or IUL) policy when you are young will be extremely beneficial for your retirement income. Income from Roth IRA account or IUL policy is 100% tax-free.
Ed Slott – a renowned tax expert – on tax benefits of IUL policies
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Explore other retirement calculators:
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- Calculator: How Much Total Retirement Savings Do I Need?
- Calculator: How Much Do I Need to Save Monthly for Retirement?
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- How to Start Saving for Retirement in Your 30s?
- Tax-Free Savings vs. Retirement Annuity: Which is Better For You?
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