Retirement Income Estimator
Estimate your total retirement income from all sources and see how long your money will last.
| Age | Portfolio | Total Income | Total Expenses | Surplus/Deficit | Cumulative |
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How to Use This Retirement Income Estimator
Fill in your profile details across four tabs — Your Profile, Savings, Income Sources, and Expenses — then click "Calculate Retirement Income." The tool instantly projects your portfolio at retirement, estimates monthly income from all sources, and shows a year-by-year breakdown of how your savings will hold up throughout retirement.
Adjust sliders for return rates, inflation, and taxes to model different scenarios. All inputs use today's dollars; the calculator automatically adjusts for inflation over time.
Why This Matters
Most Americans underestimate how much retirement income they actually need. The classic "replace 70–80% of pre-retirement income" rule sounds simple, but it ignores healthcare inflation — which has historically run at 5–6% annually versus 2–3% for general inflation. A couple retiring today might spend $6,000–$10,000 per year on healthcare at age 65, rising to $15,000–$25,000 by age 80.
Then there's sequence-of-returns risk: retiring into a bear market can permanently impair a portfolio even if long-term returns are fine. A retiree with a $1 million portfolio who experiences a 30% market drop in year one may exhaust their savings 5–10 years earlier than projected on a simple average-return model.
Social Security timing matters enormously too. Claiming at 62 versus 70 can mean a difference of 77% in monthly benefit — that's potentially $1,000+ per month for life. This tool lets you specify your Social Security start age so you can see the real impact on your retirement income plan.
How It's Calculated
Portfolio at retirement: Your current savings grow at the pre-retirement return rate, plus annual contributions, using future value of annuity compounding.
Formula: FV = PV × (1+r)^n + C × [((1+r)^n − 1) / r], where PV = current savings, r = annual return rate, n = years to retirement, C = annual contribution.
Retirement withdrawals: Each year, the portfolio earns the post-retirement return rate. Expenses grow with inflation (general for living expenses, healthcare rate for medical costs). Social Security and pension are added as income. The annual surplus or deficit is applied to the portfolio balance.
Taxes: Applied as a flat effective rate on portfolio withdrawals only (Social Security and pension may be partially taxable in reality — consult a tax advisor for precision).
Tips & Common Mistakes
- Don't ignore healthcare inflation. Budget for 5%+ annual increases in medical costs, not the standard inflation rate.
- Delay Social Security if you can. Each year you wait past 62 adds roughly 6–8% to your monthly benefit for life.
- Use a conservative post-retirement return rate. 4% is reasonable for a balanced retiree portfolio; 7% is too aggressive once you're drawing down.
- Plan to age 95+. With modern medicine, a 65-year-old couple has a 50% chance one partner reaches 92. Running out of money at 85 is a real risk.
- Account for large one-time expenses. Home repair, long-term care, and family events can each cost $50,000–$200,000. Maintain a cash buffer beyond your regular income needs.
Frequently Asked Questions
What is a safe withdrawal rate?
The widely cited "4% rule" suggests withdrawing 4% of your portfolio in year one, then adjusting for inflation each year, has historically sustained a 30-year retirement with high probability. However, with longer retirements and potentially lower future returns, many planners now recommend 3–3.5%. This calculator lets you model any withdrawal rate by adjusting your expenses against your income sources.
Should I include home equity in my retirement income?
Home equity isn't included here as it typically isn't liquid income unless you downsize, take a reverse mortgage, or rent out a room. However, these can be meaningful income supplements — a reverse mortgage on a $400,000 home might yield $1,000–$2,000 per month. Add this under "Other Income" if applicable to your plan.
How accurate is this estimate?
This tool provides a straight-line projection using constant return rates and inflation, which is a useful planning baseline but not a market simulation. Real markets fluctuate year-to-year, and sequence-of-returns risk means your actual experience may differ from averages. For precision planning, work with a fee-only financial advisor who can run Monte Carlo simulations.
What if I have a Roth IRA vs. a Traditional 401k?
Roth accounts provide tax-free withdrawals in retirement, while Traditional accounts are taxable. This tool uses a single effective tax rate on portfolio withdrawals as a simplification. If most of your savings are in a Roth, set your tax rate to 0–5%. For mostly Traditional accounts, use 15–25% depending on your projected tax bracket in retirement.