Pension Calculator: How to Make the Most Out Of Your Money
You may be a lucky employee who has a job that offers a pension plan. Based on how long you are at the job, your average annual income during the last years at work, and the age of when you collect, your pension could be worth several hundreds of thousands of dollars. Yet it can be difficult trying to figure out just how much you will get, and whether it will be enough for you and your family. A pension calculator can provide a rough estimated figure regarding how much you will get from a pension during certain life stages, such as the age on when you retire, so you can make the best retirement decisions.
Pension Calculator: What Are Your Options?
With this helpful pension calculator, you can figure out the pension amount so you can make wise investment options. Simply fill out the provided fields with your current age, age at retirement, and your pension amount at retirement (which is your average income) along with other requested information. The calculator’s built-in formula will calculate how much you are roughly entitled to during retirement.
Most people use the pension calculator to figure out when they want to retire and how they want to receive their payouts. Basically, the longer you work, the higher your pension amount will be. So if you retire at the age of 55, you might receive compensation up to 50%. Yet if you work with the company up until 65, the compensation figure could rise up to 80%.
The payout for a particular pension can vary, but typically your employer will offer the choice of a lump sum or monthly payments. With our calculator, you’ll be able to see what you will receive for both options, as you want to ensure that your spouse is taken care of if they live longer than you. You also have to take into account other factors, such as interest rates and life insurance costs.
Making the Most Out of Your Retirement
By having your pension payments figured out using our helpful calculator, you can decide on how much you want to collect, how you want to collect it, and whether you want to invest some of your pension into other investment vehicles, such as an IRA or into fixed indexed annuities. If you need help figuring out the best retirement options for yourself and your family, reach out to our experts at Fortified Retirement.