The CoRI Retirement Index (CoRI Index) provides a daily "level" that can be used to calculate an estimate of how much annual income your current savings could generate as early as 10 years before retirement. Specifically, your CoRI Index level helps you determine an estimate of how much money you need today to generate each dollar of future, inflation-adjusted annual lifetime income starting at age 65.
The CoRI Index projects the cost of a dollar of income at some point in the future. By one dollar of income, we mean one dollar, per year beginning at age 65 for however long retirement lasts. For example, a CoRI Index level of $13.54 means that a dollar of life contingent income beginning at age 65 would cost $13.54 today.
The power of the CoRI Index is that it is not based on hypotheticals or opinions; it is based on real world, real time, and publically available data. The CoRI Index provides useful and actionable insight into your retirement readiness. It also allows you to measure how well you’re doing relative to achieving your retirement income goal and puts you in a much better position to take corrective action.
For additional information on the CoRI Retirement Indexes - including daily Index levels, fact sheets, commentary and more visit the CoRI Index methodology site.
You can use CoRI at www.blackrock.com/cori or do some easy math. For example, let's say you have saved $750,000 and will turn 65 in the year 2018. Simply divide $750,000 by today's CoRI 2018 Index level (for example, $16.35), and you find that your savings may fund $45,871 in annual income starting at age 65 and lasting for the rest of your life.
$750,000 | ÷ | $16.35 | = | $45,871 |
---|---|---|---|---|
Current Retirement Savings | CoRI 2018 Index level | Estimated Amount of Estimated Lifetime Annual Income |
CoRI uses your CoRI Index level to provide an estimate of how much money you need today to generate each dollar of annual income in retirement. Because the CoRI Indexes take into account current interest rates, inflation, mortality projections and other factors, levels may change on a daily basis. CoRI Index daily levels are as follows:
Current Age | CoRI Index Name | Index Level* |
---|---|---|
64 | CoRI Index 2014 | $20.13 |
63 | CoRI Index 2015 | $19.43 |
62 | CoRI Index 2016 | $18.70 |
61 | CoRI Index 2017 | $18.00 |
60 | CoRI Index 2018 | $17.31 |
59 | CoRI Index 2019 | $16.64 |
58 | CoRI Index 2020 | $15.96 |
57 | CoRI Index 2021 | $15.34 |
56 | CoRI Index 2022 | $14.74 |
55 | CoRI Index 2023 | $14.12 |
*As of 04/15/2014
With one quick and simple calculation, CoRI helps give you a clearer understanding of how your retirement savings could translate into retirement income giving you a starting point for conversations with your financial advisor. Together, you can discuss any changes you need to make in your savings or investing strategy to help meet your goals. Then, if you're ready to retire, you can discuss options for guaranteed or other retirement income options.
Most retirement calculators project asset values into the future using assumptions that are sometimes difficult to understand. CoRI brings your future spending liability to the present, offering information that is easy to understand and reflects actual market conditions and realities.
CoRI is more precise because it is powered by the CoRI Retirement Indexes, which are calculated based on objective real-world factors, like the number of years until your retirement, current interest rates, and inflation rather than general assumptions, probability simulations or other hypotheticals.
The CoRI Index level reflects the estimated cost of each dollar of annual income in retirement, beginning the year you turn 65. The Index level is calculated using five types of real-world, real-time data:
Just as the S&P 500 Index tracks changes in certain stock prices over time, the CoRI Index shows the estimated cost of future retirement income and tracks its change over time. Because the CoRI Indexes take into account current interest rates, inflation, mortality projections and other factors, levels may change on a daily basis.
For additional information on the CoRI Retirement Indexes - including daily Index levels, fact sheets, commentary and more visit the CoRI Index methodology site.
You can check your CoRI Index level anytime you want at www.blackrock.com/cori.
By keeping up with changes to your CoRI Index level, you can have a better understanding of what, if any, adjustments you may want to consider, including your investment direction, retirement savings strategy or planned retirement date. Knowing how your CoRI Index level changes over time can help make retirement planning conversations with your financial advisor more productive.
Currently, the CoRI Indexes are built for 55 to 64 year olds, with a specific Index for each year that individuals within this group will turn 65. While the CoRI Indexes are directly applicable for individuals in these pre-retirement years, they can be used as a helpful metric for investors of any age looking to educate themselves about current projections for the future cost of retirement income.
When you turn 65, you may be in a position to convert some or all of your savings into a lifetime income stream. Talk to your financial advisor about the best ways to earn income in retirement from your investments.
Remember, the CoRI Indexes are not an investment product and doesn't deliver a guaranteed income stream. The Indexes provide an estimate of the income at retirement that your savings may purchase, which is a great start for you and your advisor to engage in more interesting and productive discussions about building a retirement income plan.
Yes. Prior to 65 the CoRI Index level represents the current cost of future retirement income, beginning at age 65. For individuals 65 years old and older, the Index level represents the median price of an immediate annuity. For instance in 2018, the CoRI 2017 Index will indicate the median price of an immediate annuity for those who turned 65 in the year 2017. Knowing the price of lifetime income on a real-time basis can be very useful for those in their first years of retirement.
For individuals intending to retire prior to age 65 the CoRI Index level will understate income needs, but percentage changes in the index level itself will be a useful indicator of overall changes in the cost of retirement for those who plan to retire before 65.
As with any index, you can't invest in the index directly, but you can use your CoRI Index level to calculate an estimate of annual retirement income based on your savings amount.
Sample Portfolio Scenarios - Assumptions and Methodology:
Additional Annual Savings
The additional required savings is derived by calculating the savings rate that will make your estimated annual retirement income equal your desired annual retirement income, within the range shown, at age 65. This calculation considers your current retirement savings, the assumed return of the sample portfolio, and the assumed return of additional annual savings over time. The assumed return of the sample portfolio is calculated using each applicable asset class’s assumed return as set forth below (see Long-term Capital Market Assumptions).
Annual Retirement Income Range
The annual retirement income range is derived by growing your current retirement savings and additional annual savings over time by the assumed return of the sample portfolio in order to calculate a minimum, maximum, and average projected portfolio balance at age 65. The minimum and maximum balances reflect the assumed volatility (risk) of the applicable asset classes in the sample portfolio (see Long-term Capital Market Assumptions). The annual retirement income range is derived by dividing these three projected portfolio balances by the CoRI Retirement Index level that corresponds to your age, and applying a 68% confidence level, which reflects an assumption that your estimated annual retirement income at age 65 is expected to fall within the range shown +/-1 standard deviation. Standard deviation is a statistical measure used to estimate how dispersed calculation results are, in relation to an average or expected value.
Long-term Capital Market Assumptions:
Asset Class |
Benchmark |
Annualized |
Annualized |
US Large/Mid Cap Equities |
Russell 1000 Index |
7.25% |
15.38% |
US Small Cap Equities |
Russell 2000 Index |
7.96% |
19.65% |
International Equities |
MSCI ACWI ex-US IMI Index |
7.98% |
18.18% |
US Bonds |
Barclays U.S. Aggregate Bond Index |
3.00% |
3.74% |
CoRI exposure |
BlackRock CoRI Retirement Indexes |
4.05% |
9.50% |
BlackRock typically reviews the assumptions quarterly. These assumptions are subject to change as subsequent conditions vary, are not a prediction of future results and are subject to inherent limitations. “Assumed” return and risk estimates are subject to uncertainty and error. For example, changes in the historical data from which it is estimated will result in different implications for asset class returns. Assumed returns for each asset class are conditional on an economic scenario; actual returns in the event the scenario comes to pass could be higher or lower, as they have been in the past, so an investor should not expect to achieve returns similar to the analysis shown herein.
IMPORTANT: The projections or other information generated by the CoRI tool regarding the likelihood of various investment outcomes are hypothetical in nature, do not reflect actual investment results and are not guarantees of future results.
This information should not be relied upon as investment advice, research, or a recommendation by BlackRock regarding (i) the use or suitability of the indexes or (ii) any security in particular. Investors should consult their financial advisor to evaluate their investment needs.
The CoRI Retirement Indexes and the CoRI tool do not guarantee future income or protect against loss of principal. There can be no assurance that an investment strategy based on the CoRI Retirement Indexes or the CoRI tool will be successful. Indexes are unmanaged and one cannot invest directly in an index.
Investing involves risk, including possible loss of principal.
The CoRI Retirement Indexes and data are subject to change. Data shown is for informational purposes only and does not represent an actual account. The CoRI tool is based on CoRI Retirement Index levels that are updated daily, so results may vary with each use and over time. The CoRI Retirement Indexes and CoRI tool do not reflect the fees, expenses and cost that may be associated with an annuity or any other retirement income product that an individual may purchase, or any assumption that such a product will be available for purchase at the time of retirement. Actual investment outcomes may vary. Although the CoRI tool provides an estimate of the amount of money you need today for every dollar of annual income you want in retirement, this estimate is not a guarantee. A number of factors may contribute to variations in retirement income.
The CoRI Retirement Indexes are maintained by BlackRock Index Services, LLC (the “Affiliated Index Provider”), a subsidiary of BlackRock, Inc., that designs, sponsors and publishes indices for use in portfolio benchmarking and portfolio management. While the Affiliated Index Provider publishes descriptions of what the CoRI Retirement Indexes are designed to achieve, the Affiliated Index Provider does not provide any warranty or accept any liability in relation to quality, accuracy or completeness of data in respect of the CoRI Retirement Indexes, and does not guarantee that the CoRI Retirement Indexes will not deviate from their stated methodologies. The Affiliated Index Provider does not provide any warranty or guarantee for Affiliated Index Provider errors.
Prepared by BlackRock Investments, LLC (“BRIL”), member FINRA. BRIL is a subsidiary of BlackRock, Inc.
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