Retirement Income Estimator
Use this calculator to estimate how much monthly income your retirement savings may generate.
Enter your numbers and click Calculate Retirement Income to see your estimate.
How this estimated retirement income calculator works
This calculator runs a two-stage estimate:
- Stage 1 (Saving years): It grows your current savings and monthly contributions at your expected pre-retirement return.
- Stage 2 (Retirement years): It converts your projected nest egg into a monthly income stream across your retirement years while assuming your remaining balance continues earning a retirement return.
You also get an inflation-adjusted estimate in today’s dollars, which can make planning more realistic.
Why retirement income planning matters
Many people focus only on a target savings number. But what really matters is income: how much cash flow your savings can deliver each month once paychecks stop. A retirement income estimate helps answer practical questions like:
- Will my savings cover my expected spending?
- How much do I need to contribute now to avoid a shortfall later?
- What role will Social Security or a pension play in my plan?
Even a rough estimate can improve decisions today, especially when you review and update it once or twice per year.
Understanding each input
Current age, retirement age, and life expectancy
These values define your timeline. The difference between current age and retirement age determines how long your money can compound. The years between retirement age and life expectancy determine how long your savings must provide income.
Current savings and monthly contributions
Your current balance is your starting point. Monthly contributions are often the most controllable variable in the entire model. A modest increase today can have a large long-term effect thanks to compounding.
Expected annual return (before and during retirement)
Returns are uncertain, so treat these as planning assumptions, not promises. Many people use a higher expected return while working and a slightly lower return in retirement due to a more conservative asset mix.
Inflation rate
Inflation reduces purchasing power over time. The calculator shows an estimate in today’s dollars to help you compare future income with current expenses more clearly.
Other retirement income
Include Social Security, pensions, annuities, or other recurring sources. These can significantly reduce pressure on your portfolio withdrawals.
Tips to improve your projected retirement income
- Increase savings rate: Even an extra $100 to $300 per month can materially improve outcomes.
- Delay retirement: Working a few extra years can increase savings time and reduce drawdown years.
- Control costs: Lower investment fees can improve long-term portfolio growth.
- Review allocation: Align risk level with your timeline and goals.
- Plan taxes: Taxes affect net retirement income, so account location and withdrawal strategy matter.
Common planning mistakes to avoid
- Using overly optimistic return assumptions.
- Ignoring inflation when setting retirement goals.
- Forgetting healthcare and long-term care costs.
- Assuming spending is flat throughout retirement.
- Never revisiting the plan after major life changes.
Important note
This calculator provides an educational estimate only. Real-world outcomes vary due to market performance, taxes, fees, policy changes, and personal spending needs. For a personalized plan, consider working with a qualified financial professional.