1. What is the Annuity Boost Calculator?

The Annuity Boost Calculator estimates the additional monthly retirement benefit that can be obtained by converting unused sick days into retirement annuity. This calculation helps employees understand the value of their accumulated sick leave.

2. How Does the Calculator Work?

The calculator uses the Annuity Boost formula:

Where:

• \( \text{Sick Days} \) — Accumulated unused sick days
• \( \text{Salary} \) — Annual salary in USD
• 260 — Standard number of working days in a year
• 12 — Months in a year

Explanation: The equation converts sick days into equivalent work time (as a fraction of a year) and calculates the proportional monthly salary that would be added to retirement benefits.

3. Importance of Annuity Boost Calculation

Details: Understanding the annuity boost value helps in retirement planning and demonstrates the financial benefit of maintaining good health and low sick leave usage during employment.

4. Using the Calculator

Tips: Enter your total accumulated sick days and your current annual salary. Both values must be positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: Why is 260 used as the denominator?
A: 260 represents the typical number of working days in a year (52 weeks × 5 days), excluding weekends and holidays.

Q2: Is this calculation applicable everywhere?
A: This is a general calculation. Specific retirement systems may have different formulas or limits for converting sick leave.

Q3: Are there tax implications for annuity boosts?
A: Yes, annuity boosts are typically taxable income. Consult a tax professional for specific advice.

Q4: Can I cash out sick days instead of using them for retirement?
A: This depends on your employer's policies. Some allow partial cash payouts while others only permit conversion to retirement benefits.

Q5: Does this account for future salary increases?
A: No, this calculation is based on current salary. Higher future salaries would typically result in greater annuity boosts.