Yes, we include your estimated Social Security benefits, which are calculated using your current income, current age, retirement age, and life expectancy.
You can also choose whether to include 100%, 50% or 0% of estimated social security benefits in your projection.
In addition to this data, we use data on how earnings income changes with age from the Current Population Survey. We then obtain your estimated 35 highest contribution years and use those to project your Average Indexed Monthly Earnings at retirement. This estimate takes a 2% projected inflation into account and it assumes an Average Wage Index (AWI) growth of 0.58% on top of inflation (based on the conservative scenario from the 2016 Trustee Report of the Social Security Administration). The projection assumes that benefits after you retire will also be adjusted by our projected 2% inflation.
We use your life expectancy to project the social security benefit claim age that we estimate to maximize the present value of your social security benefits until the end of your life expectancy.
This is only an estimate and you should refer to your Social Security Statement for an official figure from the Social Security Administration.
For more details on our methodology, please log into your account and review the Path disclosures.
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