The BMO calculator enables employees to review their estimated savings in terms of monthly retirement income rather than a total retirement dollar figure.
The calculator is personalized for each participant, incorporating individual current balance, prospective retirement age, estimated length of retirement, current pre-tax income and three other key measures. Auto step-up features, availability of catch-up contributions and any company contributions can be built into the calculator based on plan design. This is designed to enable participants to access a monthly income projection at retirement based on current savings in the plan, paired with monthly income the participant is expected to need at retirement.
Employees are also given the ability to adjust the calculation to include other assets or review different savings scenarios. The calculator is designed to pop up when a participant logs in to an account and is reset to appear once every 30 days.