So – you have managed to save a tidy amount to complement your social security pension income. How do you intend to dip into your pensions? How long will your savings last you? This calculator helps you plan how you will deaccumulate your savings.
The My ĠEMMA Savings Withdrawal Calculator is organised in three sections. The first section asks you for key information in relation to a number of factors that will determine how and over what period of time your savings will be withdraw.
Section 01 of the My ĠEMMA Savings Withdrawal Calculator
The following explains the fields in Section 01 shown above.
- Starting Principal: This is the amount that you saved.
- Annual Interest Rate: This is the interest rate you are receiving on your savings. This interest will accrue until your savings are exhausted.
- Years to Pay Out: This is the period of time that you will dip into your savings before these are exhausted.
- Payment Frequency: This allows you to set how you wish to dip into your savings: monthly, every 6 months, and annually.
- Payment Type: This allows you to set when you dip into your savings – at the beginning or at the end of a month.
- Annual Inflation Rate: This is the inflation rate – which impacts the purchasing power of your savings.
The following are calculated automatically by the Calculator.
- Initial Payout: This is the first amount of savings you withdraw from your pot. This is calculated on the basis of Years to Pay Out – item 3 above – with equal annual withdrawals to which is added interest accrued.
- Final Payout: This is the final dip into your savings, which exhausts your savings pot.
- Total Interest Earned: This presents the interest you would have earned on your savings until these are exhausted.
Section 02 of the My ĠEMMA Savings Withdrawal Calculator
This Section presents a graphical representation of My ĠEMMA Savings Withdrawal Calculator.
The green bar shows how your savings pot decreases over time – in this example, the period is 20 years. The purple bar shows how the interest on your savings will accrue cumulatively over the period.
Section 03 of My ĠEMMA Savings Withdrawal Calculator
This Section shows you in figures the withdrawals, reducing savings, interest accrued over the selected period – in this example, the period is 20 years.
