Plan your secure financial future with accurate cash balance retirement projections today.
A cash balance plan is a defined benefit retirement plan that defines the benefit in terms that are more characteristic of a defined contribution plan. Each participant has an account that is credited annually with a pay credit and an interest credit.
The core calculation updates the balance annually based on accumulated compounding factors:
$$Balance_{next} = (Balance_{current} + Pay Credit) \times (1 + Interest Credit Rate)$$
Where Pay Credit equals annual salary multiplied by the chosen pay credit percentage, and salary scales upward annually based on the designated growth rate.
Input your personal details including age and target retirement age. Provide your salary information, expected pay credit, and interest rates. Click calculate to review comprehensive financial growth projections instantly.
What is a pay credit? It is the employer contribution expressed as a fixed percentage of your annual compensation.
Are interest credits guaranteed? They can be fixed or variable based on market performance indices defined in plan documents.
Important Note: All the Calculators listed in this site are for educational purpose only and we do not guarentee the accuracy of results. Please do consult with other sources as well.