To provide an estimate of your monthly plan contribution amount, the calculator must use assumptions to represent some information that is unavailable, such as the rate of return your savings will earn and your retirement age. Below, we’ve listed these assumptions to give you an idea of how your information was calculated.
The calculator assumes that you plan to retire at the age of 67.
Although inflation at a rate of 2.4% annually is included as part of the calculations, all final figures are expressed in today’s dollars. Source: Consumer Price Index – 10 year average.
It is assumed that in addition to growing with inflation, your contributions will also increase with regular salary growth. Up to the age of 49, your contribution growth is calculated at 2.5% after inflation and after the age of 50, no growth rate above inflation is assumed. Source: Employment Cost Index – 10 year average.
Social Security benefit
It is assumed that you will receive a benefit from Social Security, which will help meet part of the retirement goal you selected. The benefit used is based on the income level for your selected retirement goal, and ranges between $9,816 and $34,764 annually. Source: Social Security Administration, 2014.
For the purposes of this calculator, we’ve assumed a balanced investment option and a rate of return based on years to retirement. After retirement age, investment growth is projected at an annuity rate of 3.3% annually. This assumption is not based on the past performance of your investment options or any options available through John Hancock, and may not reflect the current risk strategy of your existing portfolio or any future performance. Past performance is no guarantee of future results.
The amount calculated for your lump sum is expected to support you at the retirement goal you selected from the time you retire until the age of 84. Source: Centers for Disease Control and Prevention, 2012.
*Rollovers are subject to the provisions of your company's plan.