How to use it
- Enter Principal.
- Enter Annual rate %.
- Enter Payout period (years).
- Enter Payments / year.
The formula
Payout depends on principal, rate and length.
Worked example
A larger premium and later start raise the payout.
Frequently asked questions
Fixed or variable?
Fixed pays set amounts; variable moves with markets.
Any trade-off?
Guaranteed income often means less liquidity.
Tips
- Start early; a decade of compounding is hard to replace.
- Always capture any employer match in full.
- Revisit your plan yearly as income changes.
Key terms
- Nest egg
- Total retirement savings.
- Drawdown
- Withdrawing from a pot over time.
- Match
- Employer contributions to your plan.