Initial Balance
Before you sign up for a 403(b) retirement plan, you should have a clear idea about the initial amount in your retirement account. By knowing so, you can assess how much more you need to contribute and save up to lead your ideal retirement life. Moreover, the initial balance is also an important factor in calculating your monthly retirement income. Our technology-integrated 403b calculator uses this information along with other factors to deliver accurate outcomes.
Amount to Contribute
The plan holders have to contribute to this plan every year. Our calculator provides results based on these contributions. Moreover, the results we offer are provided based on the assumption that you make your contribution at the beginning of each year. These include contributions from both the employee's and the employer’s end. It also assumes that you make withdrawals at the beginning of every month. Your overall amount contribution should include any other retirement accounts and any retirement savings in non-retirement accounts you have.
Annual Salary
This calculator also requires the salary your employer provides on an annual basis before tax deductions or any benefits. This is because your contribution and employer match depends on the salary you get. The calculation of your total retirement savings doesn’t involve any income you receive from sources other than the employer. After all, only you and your employer is contributing in your retirement plan and not any other party.
Current Age
Apart from all the other factors, our 403b calculator also requires your current age. After all, how old you are right now helps evaluate how much time is left for you to save up until you reach your retirement age.
Age of Retirement
Your 403b helps you save up until you reach the age at which you retire. Our calculator assumes that you reach no more contributions will be made after you reach retirement age. Your last 403b contributions will be made one year before you retire.
Current Balance
To provide a thorough report on your retirement income, our calculator also demands you provide your current retirement savings. This includes the amount you have saved up till now with your 403b plan. These stats will allow the calculator to evaluate how much amount you are expected to save till the term of your plan ends.
Annual Rate of Return
The annual rate of return for your 403(b) account is the yearly growth of your investments. Our 403b calculator assumes that your returns are compounded annually, and you make deposits every month. Keep in mind that the actual return depends on the investment option you choose for your plan. Besides, future returns cannot be predicted and higher returns can mean higher risk. Your actual returns may also be missing any additional fees or charges that investment funds may have.
Annual Salary Increase
Your salary increments also impact your overall retirement income. This is also one of the vital factors you need to provide for the correct assessment of how much you will receive on the whole according to this plan.
Annual Investment Fee
You also need to provide your annual investment fee in percentage as it is another necessary requirement for the error-free evaluation of the amount you can enjoy as you retire and transition into the life you want to lead.
