Retirement planning: estimate capital and additional income
A retirement estimate links desired monthly income, its duration, inflation and starting capital.
Estimate the monthly need
List likely expenses and expected income, then calculate the monthly gap. Work in today’s money to understand the need before applying an inflation assumption.
Choose a projection period
The period over which capital is used strongly changes the result. A longer horizon generally requires more starting capital or lower monthly income.
Stress-test the plan
Compare higher inflation, lower return and a longer period. The simulation does not include every tax, wealth or personal factor: it is designed to frame orders of magnitude.
Frequently asked questions
How can retirement capital be estimated?
Start with the desired monthly supplement, its duration and cautious inflation and return assumptions.
Does a projection replace retirement advice?
No. It provides educational estimates and does not account for your entire situation.