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There doesn't seem to be any place in the calculator for continuing income like pensions or Social Security payments. When I first ran the calculation I put wha
by inetsee 11y ago
There doesn't seem to be any place in the calculator for continuing income like pensions or Social Security payments. When I first ran the calculation I put what I'm drawing from my 401K plan and what I expect to get from pensions and Social Security into the retirement income field, and the calculator said my income will drop down to $0 by the time I am 70, which is incorrect.
- vonmoltke 11y agoDefined benefit plans like that largely are what they are. Pensions are based almost entirely on how long you worked for the place offering the pension. Social Security is a bit more complicated, but is still based on how long you worked and how much you made. This calculator is about modelling the effects of your savings rate, inflation, and return rate on the portion of your retirement income that is based on your savings. The defined benefit payments are constants for the purposes of this model.
- trisreed 11y agoAn issue that I can imagine with modelling social security or pensions is that so much can change in the 20-40 years that many users would have until retirement - hence why I (and many others) don't plan based on it!