Are you saving and investing enough? Forecast the value of your retirement portfolio now.
The calculations in Personal Forecast are based solely on information provided by the user. All examples, if any, are hypothetical and for illustrative purposes only and do not represent current or future performance of any specific investment. No representations, warranties or guarantees are made as to the accuracy of any estimates or calculations. Personal Capital is not liable for any damages or costs of any type arising out of or in any way connected with your use of this calculator. The information provided in Personal Forecast does not serve, either directly or indirectly, as legal, financial or tax advice and you should always consult a qualified professional legal, financial and/or tax advisor when making decisions related to your individual tax situation. Past performance is not a guarantee of future return, nor is it necessarily indicative of future performance. Keep in mind investing involves risk.
This Retirement Forecast tool is intended to provide a basic sense of how your portfolio may grow and support your stated spending goals. It also gives you an easy way to see how adjustments to the most important variables (saving rate, spending rate and retirement age) can impact you. All results are presented in today’s dollars, inflation adjusted at 3.5%. Projections utilize Monte Carlo simulation, with the median scenario highlighted. The portfolio survival percentage represents the percent of the simulations which ended age 92 with a balance above $0. Growth and volatility assumptions are based on historical asset class returns and correlations using well diversified portfolios. They do not account for fees or trading costs.
6.2% average return
6.3% standard deviationConservative
7.4% average return
8.0% standard deviationModerate
8.4% average return
11.4% standard deviationAggressive
8.9% average return
13.6% standard deviationHighest Growth
9.4% average return
15.7% standard deviation
We chose an inflation number higher than current levels to help account for low current interest rates which may lead to lower future investment returns. For simplicity, we assume no taxes on portfolio growth, but tax all portfolio withdrawals (spending above income) at 20%. While not precise, we believe this is an effective way to roughly approximate the impact of taxes regardless of the composition of assets in taxable or tax-deferred retirement accounts.