The calculator, available through The Principal Retirement Service Center at www.principal.com , uses participants’ specific plan provisions to estimate their monthly defined benefit income at retirement and assist with their overall retirement planning.
The benefit calculator allows participants to input up to three different scenarios – using variables such as age at termination of employment, age at which benefits begin and annual salary increases – and easily compare the results.
“To successfully plan for retirement, participants must be able to estimate future income from all sources,” says Chris Reddy, second vice president at Principal. “This calculator allows participants to see how their defined benefit plan fits into the big picture. It is especially significant in that with the Principal DB web calculator, employees see their own plan data, not some commonly-used proxy based on industry averages.”
The calculator will also help plan participants gain stronger appreciation for their DB plans by helping them understand both the value and the impact of the programs, according to Principal. Employers gain an additional benefit from participant use of tools such as the calculator to estimate projected benefits and view accrued benefits on their own time.