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.