Building a retirement calculator

D

Dr Who

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Hi All

I am looking to build a retirement calculator which will do the following:
1) You input your pension savings per month
2) you input all the other variables such as increase %, age, etc
3) It will work out your pension payout monthly assuming you stopped paying today.

What i do not know is the following
1) What are the generic values used for the following values
  • Average expected age at death
  • admin fee per month

I am hoping to use this tool to motivate a work employee to stay employed even though he does not want to as he is 55yrs old now and should not be thinking of retirement.
 
Thanks

Ihave used this before but hoped I could obtain the workings of this calculation as the one area it does not outline is what the expected age of death is?
 
I have investment software and financial needs analysis software that have life expectancy built in. The one shows the life expectancy for a 55 year old male is 79 while the other shows 73 for a male and 78 for a female.

It is also equally important to show him/her the effects of saving for another 10 years. They are not only reducing the number of years they need to live of their retirement money by 10 years but they are saving for an additional 10 years. If you are Durban based I'd be happy to sit with them and do an analysis of whether their savings will in fact last.
 
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Sho, i definitely don want to be worrying if i have enough money at 55, i would preferably like to be retired!
 
Freaksta said:
Sho, i definitely don want to be worrying if i have enough money at 55, i would preferably like to be retired!
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Very, very few retire anywhere near 55 nowadays. We're living too long and not saving enough. Sit with your broker and see if you are anywhere near being on track for retirement at 55.
 
ClintZA said:
Very, very few retire anywhere near 55 nowadays. We're living too long and not saving enough. Sit with your broker and see if you are anywhere near being on track for retirement at 55.
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Yup, it is quite sad, Ive just entered the working world, but have managed all my own previous savings. Until i start to earn some real money (Trainee accountant) ill continue saving with my own methods. Not that i have anything against brokers, but im a firm believer in DIY! I know roughly what i need to save by the age i do want to retire, im not that wasteful with money and i am on track already to get there. Ive also grossly over estimated what i will need rather than under estimating!
 
Well, my target is to be financially independent by 55, which means I dont have to work if I dont want to and I can do what I want.
 
supersunbird said:
Well, my target is to be financially independent by 55, which means I dont have to work if I dont want to and I can do what I want.
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My goal is 50(at the latest), if you run the figures it is attainable if one cuts down on waste!
 
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Freaksta said:
My goal is 50(at the latest), if you run the figures it is attainable if one cuts down on waste!
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What figures are you running? Are you factoring in inflation, investment returns, life expectancy etc? I'd be interested to find out how much of your income you are putting towards retirement and your age?
 
Hi Dr Who,

If you would like to PM me I will do the calculations for you. With your employee wanting to retire at 55, be sure to mention that the difference between retiring at 55 vs 60 or 65 is massive - due to the fact that you will be saving for a longer term, resulting in more funds available, and your funds would need to provide for 5 - 10 years less of retirement. We all want to retire at 55 but it is best to do thorough calculations before making the decision. No one wants to run the risk of outliving your capital, which is a huge risk these days considering how long people are expected to live with current and future medical technology.
 
Your retirement calculation also needs to calculate the effect of the tax on lump sums when you withdraw from your retirement annuity/pension fund etc. An adviser can help reduce the tax liability by investing the funds with appropriate proportions in appropriate products.
 
supersunbird said:
Cant help you but here is one thats already built:

http://www.oldmutual.co.za/personal/retirement-planning/retirement-calculator.aspx

And to retire today and earn R30 000 per month (escalating with official inflation and it will last only 14 years then it will be finished) one needs ± R4.160m:
(http://www.fin24.com/Money/Money-Clinic/Retirement/Retiring-in-comfort-20121031

One does NOT want to outlive ones money and be on a crappy govt persion of R1000-whatever per month.
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* necro bump *

On that OM calculator, what is this "PENSIONABLE PERCENTAGE OF SALARY" ?
 
StrontiumDog said:
* necro bump *

On that OM calculator, what is this "PENSIONABLE PERCENTAGE OF SALARY" ?
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It relates to salary structure, usually when you are on total cost to company. In many cases your pensionable salary (i.e. the one on which you contributions are based) is not the same as your total cost to company. e.g. your pensionable salary might be R200 000 p.a. and your cost to company might be R250 000 p.a. In that case your pensionable percentage of salary would be 200/250=80%.

You can usually get your pensionable salary from your IRP5 - it should be equal to your gross retirement funding income (source code 3697 IIRC).
 
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