The retirement calculator takes the Total retirement savings and calculates how much monthly income a 4% annuity would generate without drawing from the principal. This indicates the type of lifestyle you can expect without running out of money.
Or, to put it another way: it assumes that you want to be worth roughly the same at death as you were at retirement.
That's fine, but it bears mentioning - since it assumes you want to pass on potentially millions of dollars at the time of your death.
If you aim to break even at death, that changes the calculations.
The retirement calculator takes the Total retirement savings and calculates how much monthly income a 4% annuity would generate without drawing from the principal. This indicates the type of lifestyle you can expect without running out of money.
Or, to put it another way: it assumes that you want to be worth roughly the same at death as you were at retirement.
That's fine, but it bears mentioning - since it assumes you want to pass on potentially millions of dollars at the time of your death.
If you aim to break even at death, that changes the calculations.