What annual salary growth rate is realistic to project?

Historical US wage growth averages 2–3% per year in real terms (above inflation). High performers in growing fields may see 4–5% real growth; government and non-profit workers typically 1–2%. Career changes often produce step-changes of 10–20% rather than gradual growth.

How do career breaks affect lifetime earnings?

Each year out of the workforce reduces lifetime earnings directly by one year's salary. Re-entry penalties are estimated at 2–4% per year of absence in managerial roles. Mothers face larger penalties than fathers in most industries; penalty is smaller in public sector and unionised environments.

Career Earnings Projection to Retirement

Formula Definitions

The Career Earnings Projection to Retirement works by applying a well-defined formula to the values you enter. Understanding the formula behind the calculation helps you interpret the result and check that your inputs are correct. Below we break down the key components that drive the Career Earnings Projection.

The core formula used by this calculator is:

Result = f(inputs, settings)

Each variable in the formula has a specific meaning:

inputs — Values entered into the Career Earnings Projection.
settings — Options, units, or parameters that adjust how the calculation is performed.
Result — Computed output for the chosen inputs and settings.

How to Use This Calculator

Enter the required values. Enter the required values into the Career Earnings Projection to Retirement input fields.
Adjust settings. Adjust any settings, select applicable options, or choose units as needed.
Calculate the result. Press Calculate to compute the result using the underlying formula.
Interpret the output. Review and interpret your result using the provided context, reference ranges, or explanatory notes.

Glossary and Definitions

Input: A value entered into the calculator to be processed.
Output: The computed result returned by the calculator for the given inputs.
Setting: An option that adjusts how the calculation is performed, such as unit selection or mode.
Career earnings: A key concept referenced by the Career Earnings Projection: Project cumulative career earnings from current age to retirement based on starting salary, annual growth rate, career breaks, and chosen retirement age. Outputs nominal and real (inflation-adjusted) lifetime earnings totals.
Lifetime income: A key concept referenced by the Career Earnings Projection: Project cumulative career earnings from current age to retirement based on starting salary, annual growth rate, career breaks, and chosen retirement age. Outputs nominal and real (inflation-adjusted) lifetime earnings totals.
Salary projection: A key concept referenced by the Career Earnings Projection: Project cumulative career earnings from current age to retirement based on starting salary, annual growth rate, career breaks, and chosen retirement age. Outputs nominal and real (inflation-adjusted) lifetime earnings totals.
Retirement earnings: A key concept referenced by the Career Earnings Projection: Project cumulative career earnings from current age to retirement based on starting salary, annual growth rate, career breaks, and chosen retirement age. Outputs nominal and real (inflation-adjusted) lifetime earnings totals.
Income growth: A key concept referenced by the Career Earnings Projection: Project cumulative career earnings from current age to retirement based on starting salary, annual growth rate, career breaks, and chosen retirement age. Outputs nominal and real (inflation-adjusted) lifetime earnings totals.
Career planning: A key concept referenced by the Career Earnings Projection: Project cumulative career earnings from current age to retirement based on starting salary, annual growth rate, career breaks, and chosen retirement age. Outputs nominal and real (inflation-adjusted) lifetime earnings totals.

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