Understanding Your Retirement Spending Report
Will I Be Okay in Retirement?
Your personalized Retirement Spending Report (RSR) gives you a picture of where you could be in retirement, based on where you are today.
Parkwoods takes your unique data from your retirement account and combines it with your salary data to create an estimate of what your retirement income might look like. We also provide general context on spending and savings to show how your retirement savings compare to national benchmarks and, where available, your co-workers. See the appendix in your report for details on how this data is compiled.
This service is available if your employer uses Parkwoods Wealth Partners as their Plan Advisor. If your employer doesn’t provide a Retirement Spending Report, encourage them to contact Parkwoods, and show them a sample!
Explainer Video for Retirement Spending Reports
Parkwoods' Commitment to You
Parkwoods’ goal is to make the complex simple and help you understand your financial world. A well-laid-out plan is key to achieving your financial goals, and our RSRs are one tool that can help you see what your financial future looks like and how you can plan ahead effectively.
Inside Cover
The inside cover of your RSR will have your name, date of birth, and annual compensation estimate listed. If any of these are incorrect, let us know so we can address it.
401k Savings Comparison
The green bar on the left shows what you have saved in your company’s retirement plan. The bar with the colors of the American flag shows the average 401k balance for US workers who have been at their company for ten years*. This page also includes a comparison to the average 401k savings among your co-workers.
Spending Quick Check
This page gets you in the mindset to think of the value of a day’s work before you go shopping. Do you want to spend the money on something you don’t need or save that hard-earned money to put towards something better later down the road? This type of thinking can help you be in control of your spending.
Spending Ability Today Versus in Retirement
Maintaining your standard of living in retirement is an important consideration. This page of the RSR shows your spending ability today, based on your provided salary information, as well as your projected spending ability in retirement. This estimate is based on illustrative assumptions: retirement at age 67, life expectancy of 100, and an inflation adjustment. These are general planning assumptions, not personalized projections. Your actual results will depend on your circumstances. Included in this projection are your 401(k) balance, your future 401(k) contributions, your future employer contributions, and your Social Security. This report helps you determine if you should add more to your 401k.
Other Retirement Savings
If you have other savings, completing this page and the included exercise will help you track those savings and factor them into your planning. Examples include old 401k plans from previous companies and employee stock ownership plans (ESOPs).
What's Next?
This page helps you think about the next steps you can take to increase your retirement savings and have more money available post-retirement. Some options to consider include increasing your contribution rate, consolidating old retirement accounts, or speaking with a financial professional about a broader financial plan.
Step-By-Step Recommendations
The basic steps in this section will help you improve your financial security. Some examples include establishing an emergency fund, purchasing life insurance if applicable, and creating a budget.
Appendix
This explains how we developed your report so you understand what assumptions the report includes and how we gather our data.
Revisit
This has contact information for your HR department and for Parkwoods.
*National averages based on the PSCA 2024 67th Annual Survey of Profit Sharing and 401(k) Plans. Benchmark may not be comparable due to income, plan design, match policy, and participation differences.
Take Advantage of Your Retirement Plan Benefits
At Parkwoods, we believe plan participants deserve more than account statements. We’re here to help you understand your retirement picture and take confident next steps. We can help you understand and manage many aspects of your financial life.
Contact us today to learn more about your retirement spending report and our other services.
Retirement projections are estimates based on assumed inputs, including retirement age, life expectancy, contribution rates, and Social Security estimates. Actual results will vary. These projections are provided for illustrative and educational purposes only and should not be relied upon as a guarantee of future outcomes.
This material is provided for educational purposes only and does not constitute individualized investment, tax, or legal advice. Please consult a qualified professional for guidance specific to your situation.