Posted on Friday, 9th May 2025 by

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Our updated Excel annuity calculator spreadsheet projects your annuity and maximum survivor benefit growth through 2065 using an estimated average annual Cost of Living Adjustment (COLA). Frank Cullen, an old friend who retired from federal service many years ago, developed this calculator.

In the following sample chart, the retiree’s annuity increased 75% over the next twenty years, with a projected average COLA of 2.83%. This estimate could be conservative, considering the inflation we have experienced over the past few years. If stagflation takes hold, the average annual COLA could be higher.

Projected FERS/CSRS Annuity Calculator (Sample)

 

ESTIMATED ANNUITY INCREASES

Those planning their retirement can use this spreadsheet to estimate the growth of their annuity and their spouse’s survivor benefit over time. Use your actual annuity or estimates you receive from your human resource office, if still employed, for these projections.

This spreadsheet, originally developed for CSRS retirees, accurately determines your projected monthly and annual annuity, based on an estimated average COLA growth rate, with and without survivor benefits for 40 years, and your survivor’s annual and monthly annuity. FERS retirees can use this spreadsheet with minor adjustments noted below and on the Excel form.

USING THE SPREADSHEET

Current federal employees doing advanced planning can use our Annuity Calculator to estimate their annuity for various target retirement dates.

The spreadsheet lists annual COLAs going back to 1975 for CSRS and 1995 for FERS. It includes the average 2, 3, 5, 10, and 50-year COLA growth rates to give you an idea of what to use for your estimate.

When I ran my numbers in 2005, I used 2.5%, and my annuity and survivor’s projections were close to the chart’s results for the 21 years I’ve been retired. The average CSRS COLA over the past 50 years is 3.75%, and 1.89% for FERS employees over the past 31 years. During these periods, COLAs ranged from as low as 0% for three years to as high as 14.3% in 1980! This year’s COLA was 2.5% for CSRS and 2.0% for FERS. The COLA for 2026 is still to be determined.

Projected Annuity Calculator (Excel Spreadsheet)

Download and use the Projected Annuity Calculator to determine your potential annuity growth for you and your spouse. Enter your personal information in the four yellow blocks: the year you retire, annuity, an estimated average COLA, and your age at the beginning of the year. If the Excel chart opens in protected mode, click “enable editing” at the top of the spreadsheet.

FERS EMPLOYEES

For FERS employees, the projected annuity without survivor benefit will be the same; enter your annuity or annuity estimate, age, year of retirement, what you consider to be a realistic COLA growth rate, and the spreadsheet will calculate your annuity for the next 40 years! The column reserved for your projected annuity with survivor benefits will be lower since the maximum spousal benefit is 50% for FERS, not the 55% for CSRS.

To calculate the FERS survivor’s benefit, multiply the “Projected Annuity Without Survivor Benefits” by .50 and divide this number by 12 to determine the monthly survivor benefit. For example, in the chart above, multiplying the first row’s 2026 “Projected Annuity Without Survivor Benefits” of $71,981 by .50 equals $35,990. Dividing this by 12 provides your spouse with a monthly annuity of $2,999.

END NOTES

I’m amazed at how much my annuity has grown thanks to our annual COLA increases. I’ve been retired for 21 years this December, and my annuity is now as much as my salary was when I retired in 2004! My annuity has increased by 70%! Many in the private sector would give their eye teeth for a COLA-adjusted annuity.

One of our newsletter subscribers uses this spreadsheet to estimate her Social Security earnings over the next few decades. It’s easy to do, pull up the spreadsheet and enter the year, your current Social Security annual benefit, what you consider to be an average COLA growth over time, and your age.

The readout under the column “Projected Annuity with Survivor’s Benefit” will show the potential growth of your Social Security benefit over the next 40 years. You can also enter your 401 (k) balance and project its growth over the years. Those in the private sector can use the estimator if they have a COLA-adjusted annuity from their employer, although that is relatively rare these days.

Helpful Retirement Planning Tools

Disclaimer: The information provided may not cover all aspect of unique or special circumstances, federal regulations, medical procedures, investment, and benefit information are subject to change. To ensure the accuracy of this information, contact relevant parties for assistance including OPM’s retirement center.

Over time, various dynamic economic factors relied upon as a basis for this article may change. The information contained herein should not be considered investment advice and may not be suitable for your situation. This service is not affiliated with OPM or any federal entity. You should consult with a financial, medical or human resource professional where appropriate. Neither the publisher or author shall be liable for any loss or any other commercial damages, including but not limited to special, incidental, consequential, or other damages.

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Posted in ANNUITIES / ELIGIBILITY, BENEFITS / INSURANCE, ESTATE PLANNING, FINANCE / TIP, RETIREMENT CONCERNS, SOCIAL SECURITY / MEDICARE, SURVIVOR INFORMATION | Comments (0)


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