ClearView Retirement Solutions: How long will your Money last?

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How long will your Money last?

Important information about this calculator.

This calculator allows you to see how long a lump sum amount will last in retirement based on a number of assumptions.

It allows you to adjust the level of income, investment return and inflation rate to see what impact these variables have.

As a rough guide, many retirees target a retirement income of 50-70% of their pre-retirement salary. This is because even though you have to consider expenses in retirement like medical bills, house maintenance and travel, you probably do not have to worry about costs like school fees, transport to work, work clothes, superannuation, union fees and loans.

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Assumptions
1.	Required gross income during retirement will increase each year at a default inflation rate of 2.5%. This rate is the mid-point of the RBA target range for inflation.
2.	Retirement savings increase each year with an investment rate (net of tax) at a default rate of 5.75% pa (ie. 3.25% pa above assumed inflation). The default rate of 5.75% p.a. is equivalent to the current cash target of the RBA. You may change the default rate.
3.	Life expectancy is based on the Australian Life Tables 2000-02 and the Retirement Age entered.
4.	The calculations does not allow for fees or tax.
5.	Interest is calculated daily and compounded on 1st July each year.
6.	Income is paid in evenly throughout each year.
If these assumptions are different to your situation the calculations will not be correct.
Disclaimer
1.	This "How long will your money last?" calculator is based on our interpretation of tax laws as at 1 July 2006.
2.	This "How long will your money last?" calculator does not replace personal financial product advice and you should seek specific professional advice prior to acting on any information.
3.	ClearView gives no assurance that this "How long will your money last?" calculator is free of errors or suitable for any user's intended purposes.
4.	To the extent permitted by law, ClearView will not be liable for any damages or loss suffered by the user or anyone else from use of this "How long will your money last?" calculator.
5.	Any advice in this "How long will your money last?" calculator is general advice only and does not take into account your individual objectives, financial situation or needs ("personal circumstances"). Before acting on it you should consider the appropriateness of it, taking into account your personal circumstances. ClearView Financial Advisers are representatives of ClearView Financial Management Limited.