The Retirement Simulator
Introduction
The Retirement Simulator helps agents illustrate the difference between keeping a client's money in the market versus placing it in an annuity.
The tool compares annuity performance directly against the S&P 500 Total Return Index, giving agents a clear, side-by-side picture of how each option holds up over time. Specifically, it shows:
- How long the client's money may last
- How much annual income they can draw
- How well-protected their assets are under each scenario
The goal is to help clients understand the value of annuity guarantees — and to give agents a confident, data-backed way to present them.
Check out the full training video for a complete walkthrough of the tool.
Accessing the Tool
The Retirement Simulator is located under the Calculators tab in the blue navigation bar at the top of the screen. If it does not appear, it may not be included in your current plan — please contact us to discuss upgrading.
Step 1: Input Client Data
Begin by entering your client's information using the fields described below.
Total Market-Risk Assets
Enter the total value of all accounts that can rise or fall with the market. This includes:
- 401(k)s
- IRAs
- Brokerage accounts
- Stocks
- Mutual funds
If the account value fluctuates with the market, include it in this total.
Life Expectancy
Enter the age through which the client expects to need income. The tool uses this to determine the total number of years to plan for.
Market Model
Select the type of historical market data you want the Simulator to use. This setting controls how the client's market-side assets are projected.
Last Years Uses the most recent real market returns from the S&P 500 Total Return Index (1927–present), in their actual year-by-year order. Best for showing what retirement might look like if market conditions continue along their recent trend.
Worst Years Uses the worst consecutive period in S&P 500 history for the selected timeframe. For example, a 20-year plan would reference the Great Depression era (1929–1949) — historically the toughest 20-year stretch on record. This helps stress-test the client's plan against a worst-case scenario. The tool selects the correct period automatically.
Annual Income Goal
Enter the amount of yearly income the client needs from their investments, after accounting for Social Security or any other guaranteed income sources.
Expected Inflation Rate
Enter the annual rate at which you expect the client's cost of living to increase. The tool uses this to calculate how much additional income the client will need in future years.
Inflate Immediately toggle: By default, the Simulator begins applying inflation in the year that income payments start. If you would like inflation to begin from the current date instead, enable the Inflate Immediately toggle at the top of the tool.
Income Start Age
Enter the age at which the client wants to begin receiving retirement income.
Step 2: Generate the Report
Once all inputs are entered, the tool will calculate how the client's assets would have performed if invested in the S&P 500 Total Return Index over the selected timeframe. The results display a year-by-year projection of account value and income sustainability.
Step 3: Create and Compare Scenarios
Agents can build one or more annuity scenarios to compare directly against the market projection.
Select an annuity option from the available products, then click Simulate to run the comparison.
Reviewing Results
The results panel displays a side-by-side comparison showing the potential benefit of incorporating an annuity into the client's retirement plan.
Note: The Simulator displays guaranteed income values only. Remember to always illustrate the annuity at the end of your client presentation.
"Portfolio ended" indicates the contract year in which the account value reaches zero.
Disclaimer
The Retirement Simulator provides simulations and projected outcomes for illustration and educational purposes only. All results are estimates based on historical data and do not guarantee future performance. Past market performance is not indicative of future results.
For more detailed analysis, continue building your case using the Annuity Navigator, Illustrations, or the Income Rider Calculator.
If you have any questions, please contact our support team at help@annuitiesgenius.com.