# Does my retirement budget balance?

Adds up monthly retirement income from Social Security, a pension and a planned withdrawal from savings, subtracts monthly spending, and shows the extra savings a shortfall would need.

- Page: https://www.acalculator.org/finance/retirement-budget-calculator
- JSON spec: https://www.acalculator.org/finance/retirement-budget-calculator.json
- Version: 9114840114fb

## Default answer

Example with the default inputs (Social Security a month $2,000.00, Pension a month $0.00, Other income a month $0.00, Retirement savings $400,000.00, Yearly withdrawal rate 4%, Housing $1,500.00, Food $600.00, Health care $700.00, Transportation $350.00, Travel and hobbies $400.00, Everything else $500.00): Retirement income of $3,333.33 a month against spending of $4,050.00 leaves you $716.67 short.

## Inputs

| Key | Label | Description |
| --- | --- | --- |
| ss | Social Security a month | Your expected monthly Social Security benefit, from your SSA estimate. |
| pension | Pension a month | Any monthly pension or annuity income. |
| work | Other income a month | Part-time work, rent or other monthly income. |
| savings | Retirement savings | What you have in retirement accounts and other savings you will draw on. |
| rate | Yearly withdrawal rate | The share of your savings you take out each year, often 4%. |
| housing | Housing | Rent or mortgage, property tax, insurance and upkeep. |
| food | Food | Groceries and eating out. |
| health | Health care | Medicare and other premiums, and out-of-pocket costs. |
| transport | Transportation | Car costs, fuel, insurance and transit. |
| fun | Travel and hobbies | Travel, hobbies, gifts and entertainment. |
| other | Everything else | Utilities, phone, clothing, taxes and anything else. |

## Outputs

| Key | Label | Description |
| --- | --- | --- |
| left | Left over each month | Monthly income minus monthly spending. Negative means a shortfall. |
| month | Your month ends | What is left over in words: an amount to spare, nothing to spare, or how much you are short. |
| income | Income a month | Social Security + pension + other income + the monthly withdrawal. |
| withdrawal | Withdrawal from savings a month | Savings × withdrawal rate ÷ 12. |
| spending | Spending a month | Every spending line added up. |
| yearly | Spending a year | 12 × the monthly spending. |
| guaranteed | Spending covered without savings | (Social Security + pension + other income) ÷ spending × 100. |
| extra | Extra savings to cover the shortfall | The shortfall × 12 ÷ withdrawal rate: the savings whose withdrawal would close the gap. |

## Method

withdrawal = savings × rate ÷ 12; income = Social Security + pension + other income + withdrawal; left = income − spending; extra savings for a shortfall = shortfall × 12 ÷ rate.

## Assumptions

- All amounts are per month and after any tax.
- The withdrawal is a fixed share of today’s savings. The withdrawal rate is a rule of thumb, not a guarantee that the money lasts.
- Prices rise over time; rerun the budget each year. Empty boxes count as $0.

## Worked examples

1. ss = $2,000.00, pension = $0.00, work = $0.00, savings = $400,000.00, rate = 4%, housing = $1,500.00, food = $600.00, health = $700.00, transport = $350.00, fun = $400.00, other = $500.00 gives withdrawal = $1,333.33, income = $3,333.33, spending = $4,050.00, left = -$716.67, month = $716.67 short, guaranteed = 49.382716%, extra = $215,000.00. Source: Consumer Financial Protection Bureau, Your Money, Your Goals: Monthly budget tool (list income, list spending, subtract spending from income), https://files.consumerfinance.gov/f/documents/cfpb_well-being_monthly-budget.pdf: income − spending.
2. ss = $2,500.00, pension = $1,200.00, savings = $300,000.00, rate = 4%, housing = $2,000.00, food = $800.00, health = $600.00, other = $600.00 gives withdrawal = $1,000.00, income = $4,700.00, spending = $4,000.00, left = $700.00, month = $700.00 to spare. Source: Consumer Financial Protection Bureau, Your Money, Your Goals: Monthly budget tool (list income, list spending, subtract spending from income), https://files.consumerfinance.gov/f/documents/cfpb_well-being_monthly-budget.pdf; benefit estimate: Social Security Administration, my Social Security (your benefit estimate), https://www.ssa.gov/myaccount/ (retrieved 2026-10-03).
3. ss = $1,800.50, savings = $0.00, rate = 4%, housing = $1,000.25, food = $800.25 gives left = $0.00, month = nothing to spare, guaranteed = 100%.

## FAQ

### How do I make a retirement budget?

List your monthly income in retirement, list your monthly spending, and subtract, as in any budget. Income includes Social Security, any pension, other income, and what you plan to withdraw from savings.

### How is the withdrawal from savings worked out?

Savings × yearly withdrawal rate ÷ 12. $400,000 at 4% gives $16,000 a year, or $1,333.33 a month.

### What if my retirement budget does not balance?

The page shows the shortfall and the extra savings that would cover it at your withdrawal rate: shortfall × 12 ÷ rate. A $716.67 monthly gap at 4% needs $215,000 more saved. You can also spend less, work longer, or add income.

### Where do I find my Social Security estimate?

In your my Social Security account at ssa.gov, which shows your estimated monthly benefit at different claiming ages.

### What does “spending covered without savings” mean?

The share of your spending paid by steady income (Social Security, a pension and other income) before any withdrawal. In the default, $2,000 covers 49.4% of $4,050.

### What should I include in health care?

Medicare premiums, any supplemental or drug plan premiums, and what you expect to pay out of pocket. Review the budget each year, because premiums and prices change.

## Sources

- Consumer Financial Protection Bureau, Your Money, Your Goals: Monthly budget tool (list income, list spending, subtract spending from income). https://files.consumerfinance.gov/f/documents/cfpb_well-being_monthly-budget.pdf (retrieved 2026-10-03)
- Social Security Administration, my Social Security account (personal benefit estimates). https://www.ssa.gov/myaccount/ (retrieved 2026-10-03)