TOOLS AND CALCULATORSCareer Break calculator
Explore how a career break could impact your retirement savings based on your inputs and the assumptions below.
Thinking about a career break or already taking one? J.P. Morgan can help.
Frequently asked questions
Please note: This isn’t a projection of performance, but a calculation based on the inputs above and assumptions outlined below. It’s not a guarantee or representation of future performance.
To calculate the potential future value of your retirement account balance without a career break, we consider your starting retirement account balance and annual contributions, compounded at an annual rate of return over the number of years between your current age (for the starting retirement account balance) or (for annual contributions) the year in which the contributions are made, and your target retirement age. We then adjust to account for taxes that may be owed in retirement, to show the future value of your account in after-tax dollars, in the year of retirement.
To calculate the potential future value of your retirement account balance with a career break, we consider your starting retirement account balance and annual contributions, compounded at the annual rate of return over the number of years between your current age (for the starting retirement account balance) or (for yearly contributions) the year in which the contributions are made, until the year your break begins. For the duration of the career break, we assume your retirement account balance at the beginning of the break will continue to grow at the annual rate of return and compound over that time period, but that there are no contributions being made. At the year you’ve indicated your career break ends, we resume calculating contributions, compounded at the annual return of return, up until your target retirement age. We then adjust to account for taxes owed in retirement, to show the future value of your account in after-tax dollars, in the year of retirement.
The gap reflects the difference between your potential future retirement account balance without a career break and your potential future retirement account balance with a career break.
Make a plan for your career break
Thinking about taking a career break in the future?
Contributing to an IRA while you’re still working can be a great way to plan for life's little breaks and can potentially boost your retirement savings.
Already on a career break?
Consider rolling over a 401(k) to a J.P. Morgan IRA as one potential way to help make the most of the assets in your employer-sponsored retirement plan.
Discover how you can prepare if you take a career break
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