RetirementCalculator.net
Retirement Planning

Retirement Income Calculator

Find out how long your savings will last or how much you can safely spend each month. Includes Social Security, pension, and tax-aware withdrawals.

Updated March 2026

$

Combined 401(k), IRA, and other savings

$

Total monthly expenses in today's dollars

65
5085
5%
0%12%
3%
0%8%
Income Sources & Tax Settings
$

Estimated monthly benefit in today's dollars

67
6270
$
$

Rental income, annuity, part-time work, etc.

22%
0%45%

Applied to traditional (pre-tax) account withdrawals

Your savings would last until age

--

Social Security

$0

/month

From Savings

$0

/month

Withdrawal Rate

0%

of portfolio/year

4% Rule Suggests

$0

/month total

Portfolio Balance Over Time

Projected values are estimates and are not guaranteed. Actual results will vary.

By Ryan England Last Updated:

How it works

How this retirement income calculator works

Two calculation modes

Choose "How long will it last?" to see when your savings run out at your desired spending level. Or choose "How much can I take?" to find the maximum safe monthly spending that lasts through your target age.

Income source layering

The calculator combines Social Security, pension, and other income with your portfolio withdrawals. Income sources reduce how much you need to pull from savings each month, extending the life of your portfolio.

Inflation-adjusted spending

Your monthly spending need grows with inflation each year to maintain purchasing power. A $4,000/month budget today becomes roughly $5,400/month in 10 years at 3% inflation. The calculator accounts for this in every projection year.

Tax-aware withdrawals

Set your effective tax rate to model the real cost of withdrawals from traditional (pre-tax) retirement accounts. A $4,000 monthly spending need requires roughly $5,128 in gross withdrawals at a 22% tax rate.

Fundamentals

Retirement income planning basics

Social Security

$1,976

Avg. monthly benefit (2025)

4% Rule

$20,000

/year from $500K portfolio

Income Target

70-80%

of pre-retirement income

RMD Start Age

73

Under SECURE 2.0

Sources: Social Security Administration (2025 avg. retired worker benefit). The 4% rule is based on William Bengen's 1994 research using historical market returns.

Strategies

Withdrawal strategies to consider

The 4% rule

Withdraw 4% of your portfolio in year one, then adjust that dollar amount for inflation each year. Research suggests this approach has sustained portfolios for 30+ years in most historical market conditions.

Bucket strategy

Divide your savings into three time-based buckets: 1-2 years of spending in cash, 3-7 years in bonds, and the rest in stocks. Draw from the cash bucket first, refilling it periodically from the growth buckets.

Guardrail method

Set upper and lower spending limits around your target withdrawal. If your portfolio grows enough, give yourself a raise. If it drops below a threshold, temporarily reduce spending. This balances enjoyment with sustainability.

Delay Social Security

Each year you delay claiming Social Security between 62 and 70, your benefit increases by roughly 7-8% per year. Claiming at 70 instead of 62 can mean 76% higher monthly payments for life, reducing portfolio pressure.

Tax-efficient ordering

Withdraw from taxable accounts first, then tax-deferred (Traditional 401(k)/IRA), then Roth accounts last. This sequence lets tax-free Roth assets compound longer while managing your annual tax bracket.

Roth conversions

Converting Traditional IRA or 401(k) funds to Roth before RMDs begin can reduce future required distributions and create tax-free income. The early retirement years between leaving work and claiming Social Security are often an ideal window for conversions.

Tips

Ways to stretch your retirement income

Delay Social Security to 70

If you can bridge the gap with savings, waiting until 70 maximizes your guaranteed monthly benefit. The 8%/year delayed retirement credit between full retirement age and 70 is difficult to replicate with any investment.

Consider part-time work

Even $1,000/month from part-time or consulting work dramatically extends portfolio life. It also provides structure, social connection, and can delay the need to draw from retirement accounts.

Downsize strategically

Moving to a smaller home or lower-cost area can both reduce monthly expenses and unlock home equity. Lower housing costs, property taxes, and maintenance all compound to extend your savings.

Review expenses annually

Retirement spending is not static. Healthcare costs tend to rise while travel and dining may decline. An annual review helps you adjust withdrawals to match actual needs rather than over-withdrawing based on initial estimates.

Common questions

How long will my retirement money last?
It depends on your balance, withdrawal rate, investment returns, and other income sources. A $500,000 portfolio with a 4% withdrawal rate produces roughly $20,000/year before taxes. Historical data shows a 4% initial withdrawal rate has supported 30+ year retirements in most market conditions (AAII, William Bengen research). Use this calculator to model your specific sources and spending.
What is a safe withdrawal rate in retirement?
The widely cited "4% rule" suggests withdrawing 4% of your portfolio in year one, then adjusting for inflation each year. Some financial planners recommend 3% to 3.5% for retirements lasting 35+ years or for more conservative estimates. Your actual safe rate depends on your asset allocation, other income sources, and how long you need your money to last.
How much retirement income do I need?
A common guideline suggests replacing 70% to 80% of your pre-retirement income. If you earned $80,000/year, that means targeting $56,000 to $64,000 annually from all sources combined: Social Security, pensions, and portfolio withdrawals. Use our calculator to model your specific income sources and spending needs.
What is the best order for retirement withdrawals?
A commonly recommended sequence is: taxable brokerage accounts first, then tax-deferred accounts (Traditional 401(k) and IRA), then Roth accounts last. This approach can minimize lifetime taxes by letting tax-free Roth assets grow longer. However, the optimal order depends on your tax bracket, RMD requirements, and estate goals. Consider consulting a tax advisor for personalized guidance.
What are Required Minimum Distributions (RMDs)?
RMDs are annual withdrawals the IRS requires from Traditional 401(k), Traditional IRA, and similar tax-deferred accounts. Under the SECURE 2.0 Act, RMDs begin at age 73 (or 75 for those born in 1960 or later). The amount is based on your account balance and IRS life expectancy tables. Roth 401(k) accounts are exempt from RMDs starting in 2024.