Here are some frequently asked questions about My Retirement Plan from Wells Fargo.
What is My Retirement Plan?
My Retirement Plan is an easy-to-use, online retirement tool. Answer a few questions about yourself, your income, and your current retirement savings, and My Retirement Plan will calculate how much you may need in retirement, recommend a monthly amount to save, and provide you manageable steps to take to get you closer to your goals.
How is this retirement calculator different from others?
My Retirement Plan acknowledges that your ability to save for retirement changes as your financial situation changes. Unlike other retirement calculators, My Retirement Plan provides you with a saving plan based on a percentage of your income rather than a flat dollar amount — allowing you to save more as your income rises.
How does My Retirement Plan estimate how much money I’ll need in retirement?
My Retirement Plan begins by estimating your income at retirement and then uses government data and information you provide (e.g., education level, current income, retirement age) to project your annual income year over year.
To estimate your income needs in retirement, My Retirement Plan multiplies your estimated income at retirement by your income replacement rate and increases this amount annually by the rate of inflation.
For more complete information about our calculations and assumptions, visit How We Calculate Your Plan.
Why does my income in retirement need to be so much higher than it is now?
My Retirement Plan uses an estimate of what your income will be in the year before you retire to estimate what you may need in retirement. This preretirement income is adjusted based on the income replacement rate, which is defaulted on 80% and can be changed on the Calculator Assumptions tab. We use government demographic income data to estimate how your current income may grow between now and retirement. The further from retirement you are, the more likely this number will grow.
Why does the calculator ask about my highest level of education?
All questions in the calculator help us make more informed predictions about your future. Knowing your level of education lets us determine a more realistic estimate of how much you’ll earn in the future and in turn provide an estimate of what you may need in retirement. And although this information helps us provide you with a more personalized calculation, it is optional.
I will have to pay taxes in retirement. How does My Retirement Plan account for taxes?
The amount of taxes you owe in retirement is based on many things, including where you live, marital status, and future Federal and state tax rates. It’s even affected by how much of your retirement income is in tax-advantaged accounts like 401(k)s, Traditional IRAs, and Roth IRAs.
My Retirement Plan uses the income replacement rate to estimate how much money you will need in retirement, including taxes. Based on studies of retirees’ actual retirement budgets, the tool’s replacement rate is initially set to 80%. If you feel your tax rate or other expenses will be higher or lower than what the average retiree needs today, you can adjust the income replacement rate found on the Calculator Assumptions tab.
What happens after I select and save a retirement savings plan?
- Review the monthly amount to save toward retirement, as well as next steps and action items that will help you reach your retirement saving goal.
- Download a PDF of your plan to print or save to your computer.
- Access your plan online at any time by signing on at My Retirement Plan. (Note: If you create a plan using the public version of My Retirement Plan, you cannot save or access your plan online.)
- Visit My Retirement Plan Tips to learn how to make the most of your selected retirement savings plan.
Don’t have online access to your Wells Fargo accounts?
Sign up now or use the public version of My Retirement Plan. With the public version, you cannot save your plan online, but you can access the tool’s other features.
Continue as a Guest
Note: Your plan will not be saved to your online account.
The information generated by the My Retirement Plan Savings Calculator and any information provided by employees and representatives of Wells Fargo and its affiliates is for educational purposes only and does not constitute investment, financial, tax, or legal advice. In making the My Retirement Plan Savings Calculator available for your use, Wells Fargo is not acting as your fiduciary or advisor. The results generated by the calculator are believed to be reliable but are not guaranteed. Please contact your investment, financial, tax, or legal advisor regarding your specific needs and situation.
Investment and Insurance Products are:
- Not Insured by the FDIC or Any Federal Government Agency
- Not a Deposit or Other Obligation of, or Guaranteed by, the Bank or Any Bank Affiliate
- Subject to Investment Risks, Including Possible Loss of the Principal Amount Invested
Investment products and services are offered through Wells Fargo Advisors. Wells Fargo Advisors is a trade name used by Wells Fargo Clearing Services, LLC (WFCS) and Wells Fargo Advisors Financial Network, LLC, Members SIPC, separate registered broker-dealers and non-bank affiliates of Wells Fargo & Company.
Deposit products offered by Wells Fargo Bank, N.A. Member FDIC.
Information published by Wells Fargo Bank, N.A., Wells Fargo Advisors, or one of its affiliates as part of this website is published in the United States and is intended only for persons in the United States.
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FAQs
One example is the $1,000/month rule. Created by Wes Moss, a Certified Financial Planner, this strategy helps individuals visualize how much savings they should have in retirement. According to Moss, you should plan to have $240,000 saved for every $1,000 of disposable income in retirement.
What are the 7 crucial mistakes of retirement planning? ›
7 common retirement planning mistakes — and how to avoid them
- Expecting the government to look after you. ...
- Counting on an inheritance. ...
- Not having an estate plan. ...
- Not accounting for healthcare costs. ...
- Forgetting about inflation. ...
- Paying more tax than you need to. ...
- Not being realistic. ...
- Embrace your future.
So, if you're aiming for $100,000 a year in retirement and also receiving Social Security checks, you'd need to have this amount in your portfolio: age 62: $2.1 million. age 67: $1.9 million. age 70: $1.8 million.
What is the 3 year rule for pensions? ›
Under the “Three-Year Rule,” amounts you receive are not taxed until your after-tax contributions are recovered.
Can you retire at 60 with $300 000? ›
The short answer to this question is, “Yes, provided you are prepared to accept a modest standard of living.” To get an an idea of what a 60-year-old individual with a $300,000 nest egg faces, our list of factors to check includes estimates of their income, before and after starting to receive Social Security, as well ...
Can you live on $3,000 a month in retirement? ›
That means that even if you're not one of those lucky few who have $1 million or more socked away, you can still retire well, so long as you keep your monthly budget under $3,000 a month.
What is the number one mistake retirees make? ›
1) Not Changing Lifestyle After Retirement
Many retirees also tend to forget that healthcare and long-term care costs usually come into play as a person ages. With some appropriate adjustments to your budgeting and proper planning, you can make sure you are prepared for any possible event.
What is the 3 rule in retirement? ›
In some cases, it can decline for months or even years. As a result, some retirees like to use a 3 percent rule instead to reduce their risk further. A 3 percent withdrawal rate works better with larger portfolios. For instance, using the above numbers, a 3 percent rule would mean withdrawing just $22,500 per year.
What is the golden rule of retirement planning? ›
Embrace the 30X thumb rule: Save 30X your annual expenses for retirement. For example, with annual expenses of ₹25,00,000 and a retirement in 20 years, aiming for a ₹7.5 Cr portfolio is recommended.
What is the average Social Security check? ›
Social Security offers a monthly benefit check to many kinds of recipients. As of May 2024, the average check is $1,778.24, according to the Social Security Administration – but that amount can differ drastically depending on the type of recipient. In fact, retirees typically make more than the overall average.
Average and median 401(k) balances by age
| Age range | Average balance | Median balance |
|---|
| 35-44 | $76,354 | $28,318 |
| 45-54 | $142,069 | $48,301 |
| 55-64 | $207,874 | $71,168 |
| 65+ | $232,710 | $70,620 |
2 more rowsMar 13, 2024
Many retirees fall far short of that amount, but their savings may be supplemented with other forms of income. According to data from the BLS, average 2022 incomes after taxes were as follows for older households: 65-74 years: $63,187 per year or $5,266 per month. 75 and older: $47,928 per year or $3,994 per month.
What is the golden rule for pensions? ›
With the golden rule, the ratio between your coordinated wage and the projected old-age pension at the time of ordinary retirement always remains the same, regardless of whether the rates are 1% or 2%. The golden rule is essential for calculating the appropriateness of pension plans.
How much will my Social Security be reduced if I have a pension? ›
How much will my Social Security benefits be reduced? We'll reduce your Social Security benefits by two-thirds of your government pension. In other words, if you get a monthly civil service pension of $600, two-thirds of that, or $400, must be deducted from your Social Security benefits.
Can you lose retirement benefits? ›
You may lose some of the employer-provided benefits you have earned if you leave your job before you have worked long enough to be vested. However, once vested, you have the right to receive the vested portion of your benefits even if you leave your job before retirement.
How much does the average retired person live on per month? ›
Retirement Income Varies Widely By State
| State | Average Retirement Income |
|---|
| California | $34,737 |
| Colorado | $32,379 |
| Connecticut | $32,052 |
| Delaware | $31,283 |
47 more rowsOct 30, 2023
$300,000 can last for roughly 26 years if your average monthly spend is around $1,600. Social Security benefits help bolster your retirement income and make retiring on $300k even more accessible. It's often recommended to have 10-12 times your current income in savings by the time you retire.
Can I live on $2000 a month in retirement? ›
Retiring on a fixed income can seem daunting, but with some planning and commitment to a frugal lifestyle, it's possible to retire comfortably on $2,000 a month. This takes discipline but ultimately will allow you to have more freedom and happiness in your golden years without money worries.
How much do I need in a 401k to get $2000 a month? ›
With the $1,000 per month rule, if you plan to withdraw 5% of your savings each year, you'll need at least $240,000 in savings. If you aim to take out $2,000 every month at a withdrawal rate of 5%, you'll need to set aside $480,000. For $3,000, you would aim to save $720,000.
