Retirement Income Calculator

Planning Your Post-Work Finances

Retirement transforms your financial life—from accumulating assets to drawing them down. The calculator helps project retirement income from multiple sources: Social Security, pensions, retirement accounts, and other savings. Understanding your complete income picture ensures retirement plans are realistic and sustainable.

Many people focus on saving without fully modeling the spending side. Having $1 million saved doesn't tell you whether you can maintain your lifestyle for 30 years. The calculator bridges savings to income, showing how accumulated wealth translates to monthly spending power.

Your retirement income plan should be as detailed as your accumulation plan.

Sources of Retirement Income

Typical retirement income comes from:

Social Security: Government benefit based on earnings history and claiming age

Pensions: Defined benefit plans from employers (increasingly rare in private sector)

401(k)/403(b): Tax-advantaged workplace retirement savings

IRAs: Traditional and Roth individual retirement accounts

Taxable investments: Brokerage accounts, stocks, bonds

Real estate: Rental income or reverse mortgage

Part-time work: Many retirees work some during retirement

Annuities: Purchased income streams

The calculator aggregates income from all applicable sources.

Social Security Estimation

Social Security benefits depend on:

Earnings history: Based on 35 highest-earning years Claiming age: Ranges from 62 (reduced) to 70 (maximum) Filing status: Spousal benefits may apply

Estimate based on Social Security statements (available at ssa.gov) or use simplified projections based on current earnings.

Typical benefits range from $1,500-$4,000+ monthly depending on earnings history and claiming age.

Pension Income

If you have a pension, determine:

Monthly benefit amount (from pension administrator) Whether benefits are fixed or include COLA adjustments Survivor options for spouse

Pensions provide reliable income regardless of market conditions—increasingly valuable as they become rarer.

Retirement Account Withdrawals

The core question: How much can you sustainably withdraw annually?

Conservative approach (3.5-4%): $35,000-$40,000 per year from $1 million portfolio Moderate approach (4-4.5%): $40,000-$45,000 per year Aggressive approach (5%+): Higher withdrawals with more risk of depletion

Your withdrawal rate should match your time horizon, risk tolerance, and flexibility.

Required Minimum Distributions

From age 73 (increasing to 75), you must withdraw minimum amounts from traditional retirement accounts:

RMD = Account Balance / Distribution Period Factor

These mandatory withdrawals become income whether needed or not—factor them into tax planning.

Tax Considerations in Retirement

Different income sources are taxed differently:

Social Security: 0-85% taxable depending on total income Traditional 401(k)/IRA: Fully taxable as ordinary income Roth 401(k)/IRA: Tax-free withdrawals Taxable accounts: Capital gains rates (often favorable) Pension: Generally fully taxable

Strategic withdrawal sequencing can minimize lifetime taxes.

Creating Monthly Income Budget

Project monthly retirement income:

Social Security: $2,500 Pension: $1,500 401(k) withdrawal (4% of $400,000): $1,333 Part-time work: $800 Total: $6,133/month

Compare to expected expenses to assess sufficiency.

Income Needs Over Time

Retirement income needs often follow a pattern:

Early retirement (60s-70s): Active phase, higher spending on travel, activities Middle retirement (70s-80s): Spending often decreases as activity slows Late retirement (80s+): Medical expenses may increase

Plan for changing needs rather than assuming constant expenses.

Inflation Impact

$5,000/month today won't buy the same goods in 20 years:

Income sources with COLA protection (Social Security, some pensions) help maintain purchasing power.

Longevity Planning

How long must income last? Plan for realistic longevity:

Average life expectancy at 65: 20+ years 50% chance of one spouse surviving to 90+ (couples) Plan for 30-year retirement to be safe

Running out of money at 90 is worse than leaving extra at death.

Healthcare in Retirement

Healthcare costs significantly impact retirement income needs:

Medicare premiums: $175/month+ (Part B), more with supplements Supplemental insurance: $150-400/month Long-term care risk: Potentially devastating without insurance or savings

Budget explicitly for healthcare beyond general living expenses.

Income Gap Analysis

Compare projected income to expected expenses:

Surplus: Income exceeds expenses—comfortable retirement Balanced: Income meets expenses—sustainable if assumptions hold Gap: Expenses exceed income—requires adjustment

If a gap exists, consider:

• Reducing planned expenses
• Working longer (increases savings and Social Security)
• Delaying Social Security
• Part-time work in retirement

Using the Calculator

Enter expected income from each source: Social Security (estimated), pension (if any), retirement account balances with planned withdrawal rates, other income streams.

The calculator shows:

• Total monthly retirement income
• Annual income projection
• Income by source breakdown
• Inflation-adjusted projections
• Comparison to expense budget

Model scenarios: What if you delay Social Security to 70? What if you withdraw 3.5% instead of 4%? What if part-time work adds $1,000/month?

Use results to evaluate retirement readiness and adjust plans as needed.

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Retirement income planning translates accumulated savings into sustainable monthly spending. The calculator aggregates all income sources, showing whether your resources support your planned lifestyle for a multi-decade retirement. Know your income before you need it, and adjust plans while you still have options.