1. What is Lifetime Income Projection?

The Lifetime Income Projection estimates how much income you can generate from your savings over a specified period using a given withdrawal rate. It helps in retirement planning and financial decision making.

2. How Does the Calculator Work?

The calculator uses the simple projection formula:

Where:

• \( Savings \) — Total savings amount in USD
• \( Withdrawal Rate \) — Annual withdrawal rate as decimal (e.g., 0.04 for 4%)
• \( Years \) — Number of years for projection

Explanation: This provides a simple linear projection of income over time, assuming constant withdrawal rate and no investment growth or inflation.

3. Importance of Income Projection

Details: Understanding potential lifetime income helps with retirement planning, determining sustainable withdrawal rates, and assessing financial security.

4. Using the Calculator

Tips: Enter savings in USD, withdrawal rate as decimal (e.g., 0.04 for 4%), and number of years. All values must be positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: What's a safe withdrawal rate?
A: The 4% rule is common, but optimal rates depend on portfolio composition, inflation, and life expectancy.

Q2: Does this account for investment growth?
A: No, this is a simple projection. For more accurate projections, consider using Monte Carlo simulations.

Q3: How does inflation affect this?
A: Inflation would reduce purchasing power over time. Consider using inflation-adjusted dollars for long-term projections.

Q4: What about taxes?
A: This shows gross income. Actual spendable income may be less depending on tax situation.

Q5: Is this projection guaranteed?
A: No, actual results will vary based on market performance, spending patterns, and other factors.