My Annuity Store White Logo

Retirement Nest Egg Calculator

Retirement Nest Egg Calculator

Use this retirement nest egg calculator to determine how much money you will have saved for retirement based on your current retirement savings and anticipated monthly contributions going forward.

If you are looking for an annuity calculator you can find them here.

How Much Money to Retire?

Use our How Much Do Annuities Pay Guide to see how much guaranteed monthly income an annuity would pay you.

When it comes to retirement income planning there are no one-size-fits-all answers because every situation is unique. Let’s assume you used our Retirement Nest Egg Calculator and now know your “retirement nest egg” will be $1,200,000 by the time you reach your desired retirement age of 67. 

So now you know approximately how much money you’ll have at retirement but likely have more questions?

  • How much monthly income will I need in retirement?
  • How much income will my retirement savings generate safely without the risk of outliving my assets?

According to AARP, one common rule of thumb is that you’ll need 70% to 80% of your pre-retirement income after you retire. So if you made an average of $100,000 per year during your working years, you may only need $70,000 to $80,000 in retirement. 

This is because any student loans are hopefully paid off as well as your mortgage. It also takes into consideration you are likely  “empty nesters” by the time you reach retirement age.

But it’s important to understand that your personal retirement income needs could be different than these estimates. That math could look different, for example, if you’ll have a mortgage payment for several years of your retirement or you plan to do a lot of traveling

Retirement "Income Gap"

You can use this retirement income planning worksheet to estimate how much monthly income you will need in retirement. After completing the worksheet you’ll be left with a monthly income gap.  This gap is determined by subtracting your living expenses from your guaranteed monthly income including Social Security, Pensions, and/ or annuity income. 

Here is a link to a helpful Social Security Benefits Calculator.

Once you’ve determined your monthly income shortfall you’ll be able to easily calculate the additional annual income needed in retirement (multiply monthly shortage by 12). Ideally, you will have sufficient assets to purchase an income annuity that will pay you a monthly income guaranteed for as long as you live, or as long as you or your spouse live. 

Below are the different annuity payment types currently available.

TypesSingle Premium Immediate Annuity (SPIA)Deferred Immediate Annuity (DIA)Qualified Longevity Annuity Contract (QLAC)
StartsWithin 12 MonthsIn more than 12 monthsIn more than 12 months, after age 72, and by 85
ProvidesGuaranteed income for the rest of your life,
or for a certain period
Guaranteed income for the rest of your life,
or for a certain period
Guaranteed income for the rest of your life
Funded WithQualified (IRA) or non-qualified Qualified (IRA) or non-qualified Only qualified money (IRAs)
Income Annuity Payout OptionAnnual Income Payout
10-year period certain$9,805.32
Life only - Male age 65$5,354.64
Life with 10-year certain$5,231.64
Life with 20-year certain$4,808.88

As of August 15, 2020, a $100K Single Premium Immediate Annuity would generate $5,354.64 of guaranteed lifetime income annually for a 65-year-old male. That amount is assuming income payments begin 30 days after purchasing your annuity contract. 

If you are able to plan ahead and purchase an income annuity years prior to retiring, this income amount can be substantially higher. These types of annuities are called Deferred Income Annuities (DIA). You could also purchase a Fixed Index Annuity with a Guaranteed Lifetime Withdrawal Benefit (GLWB) rider and accomplish the same goal.

Pros of using a portion of your retirement nest egg to purchase an income annuity are:

  • 100% confidence level you will not outlive your money
  • Mitigates longevity risk because your monthly “paycheck” is guaranteed regardless of how long you live
  • Mitigates Sequence of Returns risk because your monthly “paycheck” is not withdrawn from your retirement savings that are invested in the markets.

As Seen On:

NBC logo
ABC Logo
fox logo
MarketWatch logo
Investopedia logo
CBS Logo

Related Content

Annuities 101

Annuities 101

Add Your Heading Text Here Fixed Annuity Fixed Index Annuity Variable Annuity Immediate Annuity Edit Content Edit Content Edit Content Edit Content Our Services Life

Best Fixed Annuity Rates By Contract Term for October 2020

Annuity Rates

Annuity Rates for January 2022 In this guide, we’ll explain what a fixed annuity is, how they work, fixed annuity taxation, current annuity rates, the

Frequently Asked Annuity Questions

FAQs – Frequently Asked Annuity Questions Find the answer to your annuity question below.  Get a Quote FAQ Frequently Asked Annuity Questions. What is an

Buying an Annuity Online

Life Expectancy Tables

Social Security Life Expectancy Tables Life Expectancy Tables provide an estimate of your life expectancy, or, an estimate of how many remaining years you have

Scroll to Top

Get a Free Annuity Quote

Complete the form below and we’ll email your annuity quote within 4 business hours. For more immediate assistance you may reach us at 855-583-1104.

Join Our Newsletter

Sign up and get monthly annuity rate updates sent directly to your inbox.