- Definitions
- Social Security income
- Social Security is based on a sliding scale
depending on your income, how long you work and at what age you
retire. Social Security benefits automatically increase each year
based on the rise in the Consumer Price Index. Including a spouse
increases your Social Security benefits up to, but not over, the
maximum. This calculator provides only an estimate of your benefits.
Your actual benefit may be higher or lower depending on your work
history and the complete compensation rules used by Social Security.
- Current age
- Your current age.
- Age of retirement
- Age you desire to retire.
- Household income
- Your total household income. If you are
married, this should include your spouse's income.
- Expected salary increase
- Annual percent increase you expect in your
household income.
- Are you married?
- Check this box if you are married. Married
couples have a higher maximum Social Security benefit than single wage
earners.
- Inflation rate
- What you expect for the average long-term
inflation rate. A common measure of inflation in the U.S. is the
Consumer Price Index (CPI), which has a long-term average of 3.1%
annually, from 1925 through 2004. Your total expenses are increased by
this rate for each year you require income. The income you would
receive from your life insurance policy is used to cover any
shortfalls between your expected income from all sources and your
expenses.
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