Retirement Income Calculator

Free retirement income calculator. Estimate total monthly income from Social Security, pensions, annuities, and portfolio withdrawals. Identify income gaps and plan for a secure retirement.

About the Retirement Income Calculator

The Retirement Income Calculator combines all your expected income sources — Social Security, pensions, annuities, part-time work, and portfolio withdrawals — to project your total monthly and annual retirement income. It then compares this to your estimated expenses to identify any surplus or gap.

Understanding your retirement income picture is essential for deciding when to retire, how to claim Social Security, and whether your savings will last. This calculator provides a clear, consolidated view of your retirement cash flow.

Enter each income source and your expected monthly expenses to see the full picture. Many retirees discover that Social Security alone replaces only 30 to 40 percent of their pre-retirement income, leaving the remainder to be funded by pensions, savings withdrawals, and other sources. By combining all streams into a single view, you can identify whether your guaranteed income covers essential expenses and whether your portfolio only needs to fund discretionary spending — a distinction that dramatically affects how much investment risk you need to take.

Why Use This Retirement Income Calculator?

Most retirees have income from multiple sources, making it hard to know the total without a consolidated view. This calculator brings everything together, shows what percentage each source contributes, and highlights whether you have a surplus or shortfall — the most important question in retirement planning. Seeing the full picture in one place turns retirement from guesswork into a concrete, actionable plan.

How to Use This Calculator

  1. Enter your expected monthly Social Security benefit.
  2. Enter any pension income you expect (monthly).
  3. Enter annuity income if applicable.
  4. Enter expected part-time or side income.
  5. Enter your retirement portfolio balance and planned withdrawal rate.
  6. Enter your estimated monthly expenses in retirement.
  7. Review total income, gap analysis, and income breakdown.

Formula

Total Monthly Income = Social Security + Pension + Annuity + Part-Time + Portfolio Withdrawal Portfolio Withdrawal (monthly) = (Balance × Withdrawal Rate) ÷ 12 Monthly Surplus/Gap = Total Income − Monthly Expenses Income Replacement Ratio = Total Annual Income ÷ Pre-Retirement Income

Example Calculation

Result: Total: $5,500/mo ($66,000/yr) — Surplus $500/mo

Social Security ($2,200) + Pension ($800) + Part-time ($500) + Portfolio ($2,000/mo from 4% of $600K) = $5,500/month. Against $5,000 in expenses, there's a comfortable $500 monthly surplus.

Tips & Best Practices

The Retirement Income Puzzle

Retirement income comes from multiple sources that start at different times and have different characteristics. Social Security begins at 62-70. Pensions start at a set date. Portfolio withdrawals are flexible. Assembling these pieces into a coherent monthly income plan is the central challenge of retirement planning.

Income Phases in Retirement

Many retirees experience distinct income phases. Early retirement (62-70) may include part-time work and delayed Social Security. The middle phase (70-80) typically has the most stable income. Late retirement (80+) often sees rising healthcare costs and declining income from part-time work. Plan your income strategy for each phase.

Protecting Against Longevity Risk

The biggest financial risk in retirement is living longer than your money lasts. Women especially should plan for a 30+ year retirement. Annuities, delayed Social Security claiming, and conservative withdrawal rates all help mitigate this risk.

Frequently Asked Questions

How much income do I need in retirement?

A common guideline is 70-80% of pre-retirement income, but your actual need depends on your lifestyle. If your mortgage is paid off, you may need less. If you plan to travel extensively, you may need more. Map out your actual expected expenses for the most accurate picture.

Is Social Security enough to live on?

The average Social Security benefit in 2025 is about $1,976/month ($23,712/year). For most people, this covers basic expenses but not a comfortable retirement. Social Security was designed to replace about 40% of pre-retirement income for average earners.

What is a safe withdrawal rate for my portfolio?

The classic 4% rule suggests withdrawing 4% of your portfolio in year one, then adjusting for inflation. Many planners now recommend 3.25-3.5% for retirements lasting 30+ years. Higher withdrawal rates increase the risk of running out of money.

Should I include part-time income?

Yes, but be realistic about how long you'll want to or be able to work. Many retirees work part-time in early retirement (ages 62-70) but stop by their mid-70s. Plan for your income to decrease over time and rely more on portfolio withdrawals later.

How do taxes affect retirement income?

Up to 85% of Social Security can be taxable depending on total income. Traditional 401(k)/IRA withdrawals are fully taxable as ordinary income. Roth withdrawals are tax-free. A mix of account types gives you flexibility to manage your tax bracket.

What about inflation in retirement?

Social Security has COLA (cost-of-living adjustments). Pensions usually don't. Portfolio withdrawals should be inflation-adjusted. Healthcare costs typically rise faster than general inflation. Plan for 3% average inflation and higher for healthcare.

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