Retirement Income

The Retirement Income tab allows you to configure the percent of income the client will receive at retirement. Each of the prompts are discussed below.

Select how the percent of income is set for retirement.

Note:The client's income is increased annually using the values from the employer file's raises section (on the Miscellaneous tab). Click here for more information.

Same Percent of Income for All Income Levels

Select this radio button to use the same percent of income for all income levels.

Percent of Income Needed in Retirement

This prompt is only enabled if Same Percent of Income for All Income Levels radio button is selected. Enter the percent of income to use for each illustration.

Percent of Income needed in retirement

Enter the percent of income for TRAK to calculate the client's retirement income.

Different Percent of Income for Different Income Levels

Select this radio button to have different replacement percentages of income for different income levels in retirement.

This prompt below will only be enabled if the Different Percent of Income for Different Income Levels radio button is selected.

Use Default Percent of Income Tiers

To use the default tiers, check this box. The default values below will be assigned to the prompts below when this is checked.

Tier COLA

Enter the COLA applied to the income tiers between now and the client's retirement.

Note:The following editors will only be enabled when the Different Percent of Income for Different Income Levels radio button is selected and the Use Default Percent of Income Tiers check box is not checked.

Income Tiers Base Year

Enter the base year from which the income COLA is applied.

Number of Income Tiers

Enter the number of tiers in the Income Tier grid.

Income Tiers

Enter the various high income value and the corresponding percent of income to use at retirement.

Subtract Retirement Contribution Percent from Percent of Retirement Income Needed

If this is checked, the percent pre-retirement contributions will be subtracted from the percent of income needed at retirement.