The calculator assumes all contributions can be made without additional tax or fees. Contributions are assumed to be added as regular, after-tax monthly contributions into a retirement savings account. Any contribution limits relating to a specific retirement savings account are not factored in.
Please note that the following are assumed only and are not likely to reflect what will actually happen in practice. As a result, your actual account balance will be higher or lower than the figure shown by the calculator. The fixed assumptions are:
- Investment returns
The calculator assumes a pre-retirement investment return of 4% for the Conservative fund, 6% for the Balanced fund, 7% for the Moderately Aggressive fund and 8% for the Aggressive fund.
It assumes a post-retirement investment return of 4% for the Conservative fund, 6% for the Balanced fund, 7% for the Moderately Aggressive fund and 8% for the Aggressive fund.
- Future inflation & salary increases
The calculator assumes a future inflation rate of 3%.
It assumes that your future salary will increase by 3% a year.
- Assumptions used only for Social Security
The calculator assumes that the National Average Wage will increase by 3.5% a year.
It assumes past pay increases of 1% a year plus past increases in the National Average Wage.
Historical pay amounts are estimated based on user's current pay projected backwards using the actual National Average Wage Index (NAWI) rates plus 1.0%. The 1.0% reflects assumed past merit and seniority pay increases beyond the NAWI rate.
Future pay amounts are estimated based on user’s current pay projected forwards using the assumed NAWI rate plus 0.5% (i.e., 4% based on current 3.5% NAWI assumption). The 0.5% reflects assumed future merit and seniority pay increases beyond the NAWI rate.
- Life expectancy
Life expectancies allow for future mortality improvements. The life expectancies used in the calculator were derived based on the Society of Actuaries' RP-2000 Combined Mortality Table projected to 2020 using Scale AA.
- Other information
This information is provided for educational purposes only. Investing involves risk which includes the potential loss of principal. All numeric examples are hypothetical and were used for explanatory purposes only.
AHC and Lifetime are not affiliates of American United Life Insurance Company® (AUL), OneAmerica Retirement Services LLC, McCready and Keene Inc., or OneAmerica Securities and are not OneAmerica® companies.
How do you want Social Security calculated?
Social Security income in
inflation-adjusted (future) dollars