Retirement Income Calculator
Plan your retirement income and see how long your savings will last. Calculate sustainable withdrawal rates, account for inflation, and visualize your retirement portfolio over time.
How to Use This Calculator
- Enter your current retirement savings
- Set your desired annual withdrawal amount
- Input your expected investment return rate
- Add inflation rate for realistic planning
- Choose your retirement timeline (years)
- Click Calculate to see if your money will last
Your Retirement Savings
Income & Withdrawal Strategy
Investment & Economic Assumptions
🏖️ Understanding Retirement Income Planning
Retirement income planning helps you determine if your savings will last throughout retirement. The key is balancing withdrawals (spending) with investment growth, while accounting for inflation that erodes purchasing power over time.
📊 The 4% Rule Explained
The 4% Rule is a popular retirement withdrawal strategy:
- Withdraw 4% of your starting balance in year 1
- Increase the dollar amount by inflation each subsequent year
- Historically has a 95% success rate over 30 years
- Based on a 50/50 stock/bond portfolio
Example: With $1M saved, you'd withdraw $40,000 in year 1, $41,200 in year 2 (adjusted for 3% inflation), and so on.
⚖️ Withdrawal Strategies Compared
- Fixed Dollar: Same amount every year (no inflation adjustment) - simplest but loses purchasing power
- Percentage of Balance: Withdraw X% each year based on current balance - adapts to market changes
- Inflation-Adjusted (4% Rule): Start at 4%, increase by inflation - maintains purchasing power
💡 Retirement Income Tips
- Start conservative: It's easier to spend more later than to recover from overspending
- Consider all income sources: Social Security, pensions, part-time work
- Adjust as you go: Review annually and adjust withdrawals based on performance
- Keep some stocks: Need growth to combat inflation over 20-30 years
- Have a buffer: Emergency fund separate from investment portfolio
- Delay Social Security: Every year you wait increases benefits by ~8%
⚠️ Important Considerations
- This calculator assumes consistent returns - real markets fluctuate
- Sequence of returns risk: Poor returns early in retirement are most damaging
- Healthcare costs often increase faster than general inflation
- Required Minimum Distributions (RMDs) start at age 73 for traditional IRAs
- Taxes can significantly impact withdrawal amounts
- Long-term care expenses not included in typical budgets
- Consider working with a financial advisor for personalized planning
🔗 Save & Share Your Retirement Plan
Your retirement plan is automatically saved in the URL. You can bookmark this page to save your calculation, or use the Share button to send it to your spouse or financial advisor. All values will be restored automatically.