Retirement Income Planning Tool

You've worked hard to set up a secure retirement. Now it's time to double-check your monthly income to make sure you're ready to turn your retirement savings into a solid retirement income. This tool will help you calculate how much monthly income you need in order to meet your expenses, and to see if you are on track. 

Tip: To make sure your plan is prepared for the worst case scenario, over-estimate your expenses and under-estimate your income. 

Step 1. Asess your income needs

Determine how much money you're going to need every month. It is the sum of your monthly Essential Expenses plus your Discretionary Expenses. 

Begin by calculating your current expenses then adjust them based on your desired lifestyle in retirement. 

 

Step 2: Determine your monthly income sources

Step 3: See if you're facing an income gap

Your Esential Expenses must be covered by your Guaranteed Income to ensure a Life of Dignity. This is key.

If you're facing an income gap, make some adjustments that you are comfortable with. For example you can lower your expenses or increase your income, particularly your Guaranteed Income because this will provide for you a steady, reliable income for the rest of your life no matter what. 

Step 4: Income Reliability Ratio

This tells you where you stand in terms of your Retirement Income Security. It is from 0 to 100%. The higher your ratio, the higher your  Retirement Income Security. This means your Guaranteed Income will sufficiently cover your Lifestyle Expenses regardless of a market decline or other challenges like living longer. 

If your ratio is low, you may want to consider how these challenges can impact your long term retirement strategy. Consider if you are comfortable with your savings and investments funding your needs. They are less predictable due to market volatility, changes in interest rates or other factors.