Calculate Your Variable Annuity's Value
Calculate the value of your variable annuity at retirement to see whether it will fit well your retirement plans.
The report based on your input values will show your annuity balances by year and compare how your annuity’s tax-deferred investments grow compared to taxable accounts.
Explanation of the terms used:
- Variable annuity
Variable annuities, as you may already know, offer tax-deferred growth of your investment earnings. Gains are taxed only after you make withdrawals at ordinary income rates.
The rate of return will vary depending on the performance of the investment options you have chosen to invest into.
Note that our calculator assumes that any annual contributions you choose to make are made at the beginning of the year. Also, typically companies charge a "surrender charge" if you decide to withdraw money earlier from your variable annuity; this calculator does not take it into account for the calculations nor it includes any other charges and fees that your insurance company may impose.
- Starting balance
The initial amount you invest at the very beginning in your annuity.
- Current age
How old you are when you start contributing to a variable annuity.
- Withdrawal age
How old you are planning to be when you start withdrawing from your annuity.
Note that our calculator assumes that you stop making contributions the same year when you start withdrawing funds.
- Annual contribution
The amount you plan to contribute to your annuity every year.
- Expected rate of return
The predicted annual rate of return for your variable annuity.
Of course, exact prediction cannot be made since the actual rate of return can vary significantly through the years so this predicted rate is hypothetical. You should be aware that in addition to the higher earnings variable annuities provide compared to some conservative investments and fixed annuities, they also provide higher risk, which may include the loss of the principal on your investment.
Note that our calculator makes the assumption that the return for your annuity is compounded annually and does not include in the calculations any initial fees that may be charged in order to start your investment.
- Current tax rate
The rate at which your taxable investments may be taxed.
- Retirement tax rate
The rate at which your investments will be taxed at your retirement.
- Annuity total before taxes
How much your annuity will be worth before taxes at your retirement.
- Annuity total after taxes
How much your annuity will be worth at retirement but this time after taxes are paid.
- Total taxable account
The value of your investment if you had put it into a taxable account instead of a variable annuity.
If you need more information about how annuities work, their taxation, fees, risks, and etc. read Annuities Explained.
For more information about the differences, advantages and drawbacks of variable annuities vs. fixed ones, go to the guide Fixed vs. Variable Annuities.