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Determine Retirement Income Needs - Worksheet 1

The core of retirement planning can be summarized in a relatively simple way:
  • How much income will you need in retirement?
  • Will your retirement income meet your needs?
  • How much income is supplied from various sources?
Financial planners often suggest that 70% - 80% of your pre-retirement gross income is needed in retirement to maintain the same standard of living. Only you can determine what you need.

The worksheet below can help you project the amount of income you will need at retirement. The chart adjusts your projected retirement income for inflation by using Table 1.

  Example Your Planning
Current Monthly Income $2,000  
Retirement Income Goal 80%  
Dollar Goal (Today's $) $1,600  
Years Until Retirement 16  
Inflation Assumption 3%  
Factor from Table 1 1.60  
Projected Monthly Retirement Income Need (adjusted for inflation) $1,600 X 1.60 = $2,560  
* Factors are rounded, and will produce approximate results.

The Projected Monthly Retirement Income calculated above is the amount of monthly income you believe you will need in the first month of retirement. Remember your retirement income needs may change through your retirement years.

NOTE: It may be beneficial to calculate different scenarios using varying assumptions in each worksheet. This will allow you to fully explore options and make the best decision based on many possible circumstances.
  1. Project Income from Defined Contribution Retirement Plan - Worksheet 2
  2. Project Income from Defined Benefit Retirement Plan - Worksheet 3
  3. Compare Retirement Income Needs to Projected PERS Income - Worksheet 4
  4. Decide Which PERS Plan Best Meets Your Needs - File Your Election
  5. Additional Considerations