QLAC Calculator: Estimate Your Retirement Income Strategically

Our Qualified Longevity Annuity Contract (QLAC) calculator helps you estimate the income you can receive from a QLAC investment for your retirement planning.

QLAC Calculator

How to Use the QLAC Calculator

To use the QLAC calculator:

  1. Enter the premium you will be paying.
  2. Enter your current age.
  3. Enter the number of years you wish to defer your annuity payments.
  4. Click the “Calculate” button to determine your annuity income.

How It Calculates Results

The calculator uses a simplified formula to estimate the annuity income from a qualified longevity annuity contract (QLAC). It assumes a constant interest rate and does not take into account actual actuarial factors, such as mortality or gender.

Result = (Premium * (1 + Interest Rate)^Defer Years) / (Expected Payout Duration)

Where the expected payout duration is a simplified 25 years minus the current age of the annuitant.

Limitations of the Calculator

This calculator provides a basic estimation and is for illustrative purposes only. It does not account for various elements that impact actual QLAC calculations such as:

  • Different interest rates.
  • Actual life expectancy based on mortality tables.
  • Gender differences in life expectancy.
  • Changes to annuity premiums over time.
  • Regulatory and tax implications.

For a more accurate determination, consider consulting with a financial advisor or an insurance provider specializing in annuities.

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