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 enhanced planning tool enables users to 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.
T. Rowe Price said the calculator 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 available at www.troweprice.com/ric.