Calculate Your Fixed Annuity's Value at Retirement
Use this calculator to estimate how much your fixed annuity will be worth by the time you reach retirement and see how it will fit into your plans.
Explanation of the terms used:
- Fixed Annuity
Fixed annuities are insurance contracts in which the insurance company guarantees payment of no less than a specified rate of return while your account is growing. The growth of your investment earnings is tax-deferred until you start making withdrawals.
Note that for the purposes of the calculations our calculator assumes that all annual contributions are made at the beginning of the year.
- Surrender charges
Typically for annuities there is a "surrender period", during which you will have to pay a "surrender charge" if you decide to withdraw from your fixed annuity. This fee is charged as a percentage of your balance and varies for the different insurers.
- Starting balance
The invested amount at the very beginning in your fixed annuity.
- Annual contribution
The amount of money you will contribute every year to your fixed annuity.
- Current age
The age at which you plan to start contributing to a fixed annuity.
- Withdrawal age
The age at which you plan to start withdrawing from your annuity.
Note that our calculator assumes that you do not make contributions in the year you start withdrawing funds and all subsequent years.
- Current tax rate
The tax rate you expect for your taxable investments.
- Retirement tax rate
The tax rate you expect for your investments at retirement.
- Taxable account's expected rate of return
The expected annual rate of return for a taxable account if you had deposited your money there.
- Initial interest rate
The guaranteed interest rate for your fixed annuity for a specified initial period.
- Years initial rate is guaranteed
The number of years for which the initial interest rate is guaranteed.
- Expected average interest rate
The average interest rate (that you expect) for your fixed annuity after the initial guaranteed period is over.
- Minimum guaranteed interest rate
The minimum interest rate that is guaranteed after the initial guaranteed period is over.
If you want to see a comparison between fixed annuities vs. variable ones, and learn their pros and cons, go to the guide Fixed vs. Variable Annuities.
To fully understand how annuities work, their options and restrictions, read Annuities Explained.