According to a press release, the interactive tool takes into account such factors as current and future savings in employer-sponsored retirement plans, as well as other tax-deferred and tax-exempt retirement accounts; Social Security and other sources of income; the expected number of years in retirement; and investment strategy before and after retirement. For couples, the calculator accommodates such data for each spouse, the press release said.
The enhanced planning tool enables users to immediately see the impact on retirement income of changing various factors, such as the amount being saved, retirement age, number of years in retirement, asset allocation strategy, and, for retirees, the monthly amount they expect to spend.
The Retirement Income Calculator also incorporates the firm’s proprietary “Monte Carlo” methodology, providing results based on 1,000 potential market simulations, assuming a certain probability that income will be sustained throughout the retirement period.
The Retirement Income Calculator is at http://www.troweprice.com/ric .