Retirement Saver

Enter Your Proposed Savings Plan and Other Factors Affecting Your Retirement

Personal Details
Current Age
Retirement Age
Annual Growth Rates
Return on Financial Assets Help %
Home Value Appreciation Help %
Annual Increase in Payment
Use an Annuity
Cash Refund Option Help
Deferment Period (years) Help
Assets & Liabilities
Financial Assets $
Current House Value $
House Zip Code
Current Mortgage Balance $
Mortgage Payment Help $
Mortgage Interest Rate Help %
Savings Plan
Frequency Amount Start in Month # Duration End in Month # Annual Increase
$ %
$ %
$ %
$ %
Desired Monthly Income
Calculate savings needed for the desired monthly income after retirement:
Desired Monthly Income:
Return on Financial Assets: The average average annual money you make on your financial assets. The table below shows typical returns from 1926 - 2020 based on your allocation between fixed income and equities investments.
Fixed Income0%20%40%60%80%100%
Top 10% Annual Return17.28%15.40%13.82%12.51%11.07%9.59%
Average Annual Return11.43%10.49%9.14%7.45%5.57%4.54%
Bottom 10% Annual Return4.00%4.66%5.02%4.97%4.08%1.81%
Home Value Appreciation: Over long periods, home values have appreciated about 4% a year, and this value is used by HUD in stipulating the withdrawal amounts on HECM reverse mortgages. Homeowners who have good reasons to believe that their home will appreciate faster or slower than the average can modify the appreciation entry accordingly.
Mortgage Payment: The amount you are currently obliged to pay monthly toward the principal and interest of your mortgage.
Mortgage Interest Rate: The current annual interest rate on your mortgage.
Cash Refund Option: If you select this option and you die before the total amount of the annuity payments you've received exceeds what you paid for the annuity, your heirs will receive the difference. For example, if you die during the annuity deferment period (i.e. before any payments have been made) your estate will receive back the total amount you paid for the annuity. Note that selecting this option will reduce the monthly annuity payments.
Deferment Period: The amount of time between when you purchase an annuity and when you begin to receive monthly payments from the annuity.

This section of the chart shows monthly annuity income, which begins in 0 years at and increases by 2% a year. You pay for the annuity now with part of your assets, in exchange receiving an income stream for life starting in 0 years. The remainder of your assets will be used for spendable funds during the 0-year annuity deferment period.

In your case, of your financial assets are used to purchase the annuity.

RFI selects the Deferred Income Annuity that results in the highest monthly income from a network of annuity companies rated A or higher by AM Best. Click the 'Annuity Pricing' button to see how RFI’s automated shopping can increase your annuity income.

During the 10 year annuity deferment period spendable funds are provided by a combination of a HECM Term Payment and draws from your remaining financial assets. The blue area of the chart is the 10 year HECM term payment, which in your case is per month.

RFI uses a network of HECM reverse mortgage lenders to find the best “price” for the reverse mortgage. Click the 'HECM Pricing' button to see the range of term payments that are available on the network – RFI automatically selects the lender offering the largest term payment.

HECM term payments are augmented by draws from your remaining financial assets () to provide spendable funds during the early years of the plan – this is shown in the red section of the chart. Spendable funds grow at 2% per year and provide a smooth transition to the start of annuity income in 10 years.

How does this retirement plan work?

  • The plan shows how the assets you will have at retirement can be used to create a "personal pension" that provides a lifetime stream of income
  • At retirement, part of your assets are used to purchase an annuity that is guaranteed by an insurance company to pay you every month for life
  • Three different scenarios are shown: (1) only your current financial assets are used to fund the plan, (2) the additional savings you specify are added to your current assets to fund the plan, and (3) your home equity - in the form of a reverse mortgage - are added to your financial assets + savings to fund the plan
  • Changing your savings plan shows you how increasing savings increases the amount you will have to spend in retirement

The RFI generated chart above is one possible retirement plan for you, but it is not necessarily the best plan possible.

  • A different annuity deferment period might result in more spendable funds.
  • You might prefer a pattern of spendable fund that changes over time (i.e. differs from the annual 2% increases shown in the chart).
  • You might want a rider on your annuity that provides a refund of premium in the event of early death.
  • The graph does not show changes in your estate value, which might be important to you.
  • Tax consequences (including whether some or all of your financial assets are in ordinary or tax deferred accounts) are not taken into account.

These or other issues involved in designing a plan that best meets your needs can be discussed with a Mortgage Professor representative who has access to the full RFI technology.

Privacy Policy: Your phone number and email address will only be used to answer your question(s). You will not receive calls or emails from other parties and your personal information will not be sold or given to any other parties.