Retirement Annuity Income Calculation

Description
The Excel spreadsheet calculates when your living retirement annuity will be depleted based on your capital, drawn monthly income, interest rate, and inflation under consideration of the South African income tax brackets.

The excel file is self-explanatory. Nevertheless, instructions are provided under the "Read me" tab.

Next to the results (age and year when the annuity will have depleted to zero), details are given in table format for each months until depletion of funds. A graphical representation can be found under the "Graph" tab.

The monthly annuity income is adjusted to cater for inflation as an input variable.
The spreadsheet is designed with the tax brackets and rebates of the South African Revenue Service (SARS) but can be easily adapted to any other country with its specific income tax specifications.

With this tool, one can adjust the various assumptions to determine, at which age one can retire with a specified income, which increases based on the given (inflation-based) yearly increase, dependent on the assumed lifetime.

One can determine the influence of annuity fees paid to the provider and the "promised" increase in funds. Thereby, one can compare the offers of various living annuity providers and make an informed decision, which company to chose for this very important income stream.