Retirement Income Calculator
Estimate how long your retirement savings will last based on your withdrawals, investment returns, and other income sources. Plan your retirement strategy with this comprehensive calculator.
Retirement Plan Summary
| Retirement Savings at Retirement | $0.00 |
|---|---|
| Monthly Income in Retirement | $0.00 |
| Years Until Retirement | 0 |
| Years in Retirement | 0 |
| Savings Will Last Until Age | 0 |
| Total Contributions | $0.00 |
| Total Withdrawals | $0.00 |
| Ending Balance | $0.00 |
About the Retirement Income Calculator
This retirement income calculator helps you determine how long your retirement savings will last based on your planned withdrawals, investment returns, and other income sources. It accounts for inflation and shows you the projected growth of your retirement nest egg.
How Retirement Income is Calculated
The calculator uses the following steps to project your retirement income:
- Accumulation Phase: Calculates how your savings grow from your current age to retirement age with your monthly contributions and investment returns.
- Retirement Phase: Projects how your savings will be drawn down during retirement based on your withdrawals, adjusted for inflation.
- Income Sources: Combines your withdrawals with Social Security, pension, and other income sources to determine your total monthly income.
- Longevity: Determines how long your savings will last based on your withdrawal rate and investment returns during retirement.
Key Retirement Planning Concepts
Understanding these concepts will help you make better retirement planning decisions:
Safe Withdrawal Rate
The percentage of your retirement savings you can withdraw each year without running out of money. A common rule of thumb is the 4% rule, but your personal rate may vary based on your age, investment returns, and other factors.
Sequence of Returns Risk
The risk that poor investment returns early in retirement will significantly reduce your portfolio's longevity, even if average returns are good over time.
Inflation
The calculator accounts for inflation by increasing your withdrawals each year to maintain purchasing power. This is crucial for long-term retirement planning.
Tips for Improving Your Retirement Plan
- Increase your savings rate before retirement
- Consider working a few extra years to boost savings and reduce the retirement period
- Adjust your withdrawal rate based on market conditions
- Diversify your investments to balance growth and risk
- Plan for healthcare costs, which often increase in retirement