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Retirement living expenses calculator12/28/2023 ![]() ![]() Changing any of the inputs will result in a different output.īy using historical returns based on Shiller data of stocks (S&P 500 Index), bonds (10 year US Treasury), and cash (1 year US Treasury) dating back to 1871, GRAIL analyses incorporate many variables ranging from different sequence of returns to different market volatility, and calculate the multi-faceted effects of the same on the assumed variable annuity and add-on living benefit features. GRAIL runs multiple historical iterations to arrive at an array of possible Proposed Gap Solution numbers and then calculates an output based on the median. Assumptions of a variable annuity with an add-on living benefit.Aggressive allocation of 80% Stocks and 20% Bonds.Moderate allocation of 50% Stocks, 45% Bonds and 5% Cash.Conservative allocation of 25 % Stocks, 60% Bonds and 15% Cash.Risk Profile / asset allocation (choose one).Using the number of years until start of retirement along with the inputs of: GRAIL determines the number of years until start of retirement using the desired retirement age minus current age entered in the Retirement Expense & Income Calculator. by using its data-driven and objective software called Guaranteed Retirement Analytics for Income and Legacy (GRAIL). This calculation is done independently by Hedgeness Inc. The Proposed Gap Solution is designed to calculate the investment amount needed today to purchase a variable annuity with an add-on living benefit to cover the estimated Income Gap in the first year of retirement and continue that income payment through the lifetime of the retiree. Your clients should consider their individual situation, including time horizon, risk tolerance, investment objectives and the need for an annuity before investing. Your clients’ individual circumstances may vary. The outcomes presented by the Proposed Gap Solution are provided for informational purposes and are not intended as investment advice or a recommendation. Results may vary with each use and over time. This tool is for illustrative purposes only and is not representative of the past or future performance of any Jackson product. IMPORTANT: The outcomes displayed in the Proposed Gap Solution are hypothetical in nature, do not reflect an individual's actual investment results and are not a guarantee of future results. The general inflation rate is calculated by averaging yearly inflation rates, as published by BLS4 over a 22-year period. In other cases where a negative inflation rate is returned, a general inflation rate of 2.24% is used. The subcategory inflation values are calculated by taking a 22-year average of the percentage change in prices as published by the Bureau of Labor Statistics Consumer Price Index for All Urban Consumers report4.įor cases where the average inflation rate over the 22-year period results in a value significantly higher than other categories, the period is extended to a 54-year period. The weighted inflation values are then averaged together to make a category weighted inflation factor. The weighted inflation factor is calculated first by adjusting each subcategory inflation value based on the weight of the estimated subcategory expense value to the total category estimated expense value. The PCE index tracks changes in price levels and consumer behaviors at the state and national level and is calculated annually. Personal Consumption Expenditures price index (PCEPI)3 2021 was the last year data was collected. It represents an average value over a 39-year period from 1983 to 2021. The CPI-E takes into account spending behaviors in households with a member age 62 or above. ![]() The RPP determines the inputted state’s purchasing power by weighing its average price level of goods and services against other states' averages.Ĭonsumer Price Index for the Elderly (CPI-E)2 ![]()
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