Disclosures
Retirement Calculator Overview
The Retirement Calculator is a conceptual planning tool intended to help you begin thinking about your future financial needs. It provides a hypothetical illustration based on your inputs and generalized assumptions. This is not a financial plan, nor is it intended to guide investment decisions.
Assumptions & Limitations
Results are based on estimated rates of return, inflation, and asset allocation assumptions, which may not reflect actual performance. Small changes in inputs can significantly affect outcomes. The model does not account for taxes, fees, behavioral factors, or market events.
Because projections are hypothetical and based on simplified inputs, actual results will vary and may be materially different.
Retirement Calculator Methodology
This calculator is a planning tool designed to show examples of how your savings and investments could grow and be used over time. The results are estimates only and are not guaranteed.
The calculator uses standard compound interest formulas to project how your balances and contributions may increase over time. For example, it applies this formula:
FV = PV(1+r)^t + PMT[((1+r)^t - 1)/r]
where:
- PV is your current balance,
- r is the assumed annual return rate you selected,
- t is the number of years,
- PMT is your annual contribution.
To estimate Social Security benefits, the calculator uses formulas from the Social Security Administration, including Average Indexed Monthly Earnings (AIME) and Primary Insurance Amount (PIA). It applies current bend points to calculate benefits (for example, 90% of the first $1,174 of AIME, 32% of the next portion, and 15% of the remainder) and adjusts for early or delayed claiming and possible taxes.
The calculator models different market return scenarios by generating random sequences of annual returns. These are produced using the Box-Muller transform, which creates normally distributed random numbers. This process is sometimes referred to as “stochastic modeling” or “Monte Carlo–style,” but does not represent a full Monte Carlo simulation as used in some financial planning software. This approach is designed to help illustrate how varying returns over time can impact your results, including the risk that poor returns early in retirement may affect portfolio sustainability.
The calculator also factors in tax-efficient withdrawal strategies (such as using taxable accounts first), estimated inflation, real estate appreciation, mortgage payoff schedules, and significant life events like home purchases or family changes.
These examples are only illustrations and should not be considered predictions or guarantees of future performance. Actual results can be very different because of changes in markets, tax laws, personal health, or other factors.
Tax and Legal Guidance
Steward Partners, its affiliates, and Steward Partners Wealth Managers do not provide tax or legal advice. You should consult with your tax advisor for matters involving taxation and tax planning and their attorney for matters involving trust and estate planning and other legal matters.
Responsibilities & Next Steps
This report is a starting point only. Steward Partners is not responsible for monitoring or updating this analysis unless specifically engaged. For a comprehensive, personalized financial plan, we recommend working with a qualified financial advisor.
Disclosures
This report does not constitute an offer or recommendation to buy or sell any security or strategy. All investments carry risk, including the loss of principal.