Retirementamt

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	Age at Retirement & Life Expectancy (yrs)
	55		60		65
Gross Amt	Male	Female	Male	Female	Male	Female
Required	24.22	28.53	20.05	24.11	16.21	19.88
$20,000	$258,366	$276,469	$235,823	$257,840	$209,483	$234,780
$25,000	$322,957	$345,586	$294,779	$322,300	$261,853	$293,475
$30,000	$387,548	$414,704	$353,734	$386,760	$314,224	$352,170
$35,000	$452,140	$483,821	$412,690	$451,220	$366,595	$410,865
$40,000	$516,731	$552,938	$471,646	$515,680	$418,965	$469,560
$45,000	$581,323	$622,055	$530,601	$580,140	$471,336	$528,254
$50,000	$645,914	$691,173	$589,557	$644,600	$523,707	$586,949
$55,000	$710,505	$760,290	$648,513	$709,060	$576,077	$645,644
$60,000	$775,097	$829,407	$707,469	$773,520	$628,448	$704,339

Assumptions:

Rate of return on investments: 6.00%

The pension amounts are not increased for inflation

Pension amounts are paid quarterly (annual amount / 4)

Investment returns compound quarterly.

The amounts withdrawn are gross (many different tax situations are possible)

Calculations are provided for males and females retiring at 55, 60 and 65 and for gross amounts (prior to deducting tax) required from $20,000 per year to $60,000 per year. It was assumed that pension withdrawals are made quarterly and that investment returns compound quarterly.

For simplicity it was also assumed that withdrawals per quarter are not increased by the rate of inflation. Obviously, if withdrawals are increased quarterly for inflation then a larger investment is required. Also, if investment returns are lower than the assumption larger investment amounts would also be required.

Proof:

A male retiring at age 65 and wanting to live on $40,000 (gross) per year would need, according to the above table, $418,965. This male's life expectancy, according to life tables, is 16.21 years or 64.84 quarters. This means that the money would run out between the 64th and 65th quarters. See table below:

Quarter No	Pension	Interest	Balance	Quarter No	Pension	Interest	Balance
			418965.00	33	10000.00	3775.25	255458.66
1	10000.00	6134.48	415099.48	34	10000.00	3681.88	249140.54
2	10000.00	6076.49	411175.97	35	10000.00	3587.11	242727.64
3	10000.00	6017.64	407193.61	36	10000.00	3490.91	236218.56
4	10000.00	5957.90	403151.51	37	10000.00	3393.28	229611.84
5	10000.00	5897.27	399048.78	38	10000.00	3294.18	222906.02
6	10000.00	5835.73	394884.52	39	10000.00	3193.59	216099.61
7	10000.00	5773.27	390657.78	40	10000.00	3091.49	209191.10
8	10000.00	5709.87	386367.65	41	10000.00	2987.87	202178.97
9	10000.00	5645.51	382013.16	42	10000.00	2882.68	195061.65
10	10000.00	5580.20	377593.36	43	10000.00	2775.92	187837.58
11	10000.00	5513.90	373107.26	44	10000.00	2667.56	180505.14
12	10000.00	5446.61	368553.87	45	10000.00	2557.58	173062.72
13	10000.00	5378.31	363932.18	46	10000.00	2445.94	165508.66
14	10000.00	5308.98	359241.16	47	10000.00	2332.63	157841.29
15	10000.00	5238.62	354479.78	48	10000.00	2217.62	150058.91
16	10000.00	5167.20	349646.98	49	10000.00	2100.88	142159.79
17	10000.00	5094.70	344741.68	50	10000.00	1982.40	134142.19
18	10000.00	5021.13	339762.81	51	10000.00	1862.13	126004.32
19	10000.00	4946.44	334709.25	52	10000.00	1740.06	117744.38
20	10000.00	4870.64	329579.89	53	10000.00	1616.17	109360.55
21	10000.00	4793.70	324373.59	54	10000.00	1490.41	100850.96
22	10000.00	4715.60	319089.19	55	10000.00	1362.76	92213.72
23	10000.00	4636.34	313725.53	56	10000.00	1233.21	83446.93
24	10000.00	4555.88	308281.41	57	10000.00	1101.70	74548.63
25	10000.00	4474.22	302755.63	58	10000.00	968.23	65516.86
26	10000.00	4391.33	297146.97	59	10000.00	832.75	56349.61
27	10000.00	4307.20	291454.17	60	10000.00	695.24	47044.86
28	10000.00	4221.81	285675.98	61	10000.00	555.67	37600.53
29	10000.00	4135.14	279811.12	62	10000.00	414.01	28014.54
30	10000.00	4047.17	273858.29	63	10000.00	270.22	18284.76
31	10000.00	3957.87	267816.16	64	10000.00	124.27	8409.03
32	10000.00	3867.24	261683.41	65	10000.00	-23.86	-1614.84

DISCLAIMER:

The information provided is not substitute for professional advice. We disclaim all responsibility for full or partial reliance on the information provided. Obtain advice from your accountant or financial adviser before proceeding.

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