1. What is Lifetime Income Calculation?

Lifetime income calculation estimates the monthly income you can receive from your retirement savings over your lifetime. It uses annuity factors based on age and life expectancy to determine sustainable withdrawal rates.

2. How Does the Calculator Work?

The calculator uses the lifetime income formula:

Where:

• \( Balance \) — Total retirement savings amount
• \( Annuity\ Factor \) — Factor based on age and life expectancy

Explanation: The annuity factor represents the estimated number of years your savings need to last, converted to a monthly payment factor.

3. Importance of Lifetime Income Planning

Details: Proper lifetime income planning ensures you don't outlive your retirement savings while maintaining your desired standard of living throughout retirement.

4. Using the Calculator

Tips: Enter your total retirement balance and current age. The calculator will use appropriate annuity factors based on your age to estimate your sustainable monthly income.

5. Frequently Asked Questions (FAQ)

Q1: What is an annuity factor?
A: An annuity factor is a number that represents how many years your savings need to last based on your life expectancy and other factors.

Q2: How accurate are these estimates?
A: These are estimates based on standard actuarial tables. Actual results may vary based on market conditions, inflation, and individual circumstances.

Q3: Should I consider inflation?
A: Yes, this calculation provides nominal income. For real (inflation-adjusted) income, consider using inflation-adjusted annuity factors.

Q4: What if I have other income sources?
A: This calculator shows income from your savings only. Add other income sources (Social Security, pensions) for total retirement income.

Q5: How often should I recalculate?
A: Recalculate annually or when your financial situation changes significantly (market movements, additional contributions, etc.).