{
  "id": "retirement-income",
  "version": "342250a6562e",
  "status": "published",
  "name": "Retirement Income Calculator",
  "question": "What retirement income will I have?",
  "summary": "Computes the monthly income your retirement savings can pay until an age you choose, rising with inflation, plus Social Security and pensions.",
  "category": "finance",
  "subcategory": "retirement",
  "url": "https://www.acalculator.org/finance/retirement-income-calculator",
  "markdown": "https://www.acalculator.org/finance/retirement-income-calculator.md",
  "kind": "schedule",
  "method": "From savings: W = savings ÷ (a × S), with a = Σ_{j=0}^{11} (1 + g)^−j, g = (1 + R)^(1/12) − 1, and S = Σ_{k=0}^{Y−1} ((1 + raise) ÷ (1 + R))^k over Y years; W rises by the raise each year. Total income = W + Social Security + pension.",
  "assumptions": [
    "The yearly return stays the same every year. Real returns go up and down, and a bad year early on matters most.",
    "Withdrawals are taken at the start of each month and rise at the start of each new year; the savings run out at the age you chose.",
    "Social Security rises by the same yearly raise. The pension stays the same unless you turn on its raise.",
    "Taxes on withdrawals and benefits are not included. This is an estimate for planning, not financial advice."
  ],
  "inputs": {
    "$schema": "https://json-schema.org/draft/2020-12/schema",
    "type": "object",
    "properties": {
      "savings": {
        "title": "Savings at retirement",
        "description": "What you have saved for retirement when the income starts, in every account together.",
        "type": "number",
        "x-unit": "USD",
        "minimum": 0,
        "maximum": 10000000000
      },
      "age": {
        "title": "Age the income starts",
        "description": "Your age when you start drawing on your savings.",
        "type": "integer",
        "minimum": 40,
        "maximum": 100
      },
      "until": {
        "title": "Make it last until age",
        "description": "The age your savings should last to. They run out at that age.",
        "type": "integer",
        "minimum": 41,
        "maximum": 120
      },
      "rate": {
        "title": "Yearly return",
        "description": "The yearly return on what is left of your savings. It stays the same every year.",
        "type": "number",
        "x-unit": "percent",
        "minimum": 0,
        "maximum": 30
      },
      "inflation": {
        "title": "Raise the income each year by",
        "description": "How much your savings income and Social Security rise each year, usually the inflation rate.",
        "type": "number",
        "x-unit": "percent",
        "minimum": 0,
        "maximum": 20
      },
      "ss": {
        "title": "Social Security",
        "description": "Your Social Security benefit when the income starts, per month or per year.",
        "type": "number",
        "x-unit": "USD",
        "x-period": "month",
        "minimum": 0,
        "maximum": 100000000
      },
      "pension": {
        "title": "Pension and other income",
        "description": "A pension, annuity or other regular income when the income starts, per month or per year.",
        "type": "number",
        "x-unit": "USD",
        "x-period": "month",
        "minimum": 0,
        "maximum": 100000000
      },
      "pcola": {
        "title": "The pension rises each year too",
        "description": "Turn on if your pension has a cost-of-living raise like Social Security. Many pensions do not.",
        "type": "boolean"
      }
    }
  },
  "outputs": {
    "total": {
      "label": "Your monthly retirement income",
      "description": "From savings plus Social Security plus pension, in the first month.",
      "format": "money"
    },
    "fromSavings": {
      "label": "From your savings",
      "description": "The first-year monthly withdrawal that, rising each year, uses up your savings exactly at the age you chose.",
      "format": "money"
    },
    "fromOther": {
      "label": "From Social Security and pensions",
      "description": "Social Security plus pension and other income in the first month.",
      "format": "money"
    },
    "yearly": {
      "label": "Per year, first year",
      "description": "Your monthly retirement income × 12.",
      "format": "money"
    },
    "lastYear": {
      "label": "Monthly income in the last year",
      "description": "Your total monthly income in the last year of the plan, after the yearly raises.",
      "format": "money"
    },
    "withdrawn": {
      "label": "Total taken from savings",
      "description": "Every withdrawal from your savings added up, until the age you chose.",
      "format": "money"
    }
  },
  "defaultAnswer": {
    "inputs": {
      "savings": 1000000,
      "age": 65,
      "until": 95,
      "rate": 5,
      "inflation": 3,
      "ss": 2000,
      "pension": 0,
      "pcola": false
    },
    "outputs": {
      "total": 5702.299596646591,
      "fromSavings": 3702.299596646591,
      "fromOther": 2000,
      "yearly": 68427.5951597591,
      "lastYear": 13437.842534388561,
      "withdrawn": 2113661.3085577153
    },
    "text": "Savings of $1,000,000.00 from age 65 to 95 pay about $3,702.30 a month; with other income, $5,702.30 a month."
  },
  "examples": [
    {
      "given": {
        "savings": 300000,
        "age": 65,
        "until": 90,
        "rate": 0,
        "inflation": 0,
        "ss": 2000
      },
      "expect": {
        "fromSavings": 1000,
        "fromOther": 2000,
        "total": 3000,
        "yearly": 36000,
        "withdrawn": 300000
      },
      "source": "Social Security Administration, Cost-of-Living Adjustment (COLA) information: benefits rise each year with prices (https://www.ssa.gov/cola/); hand calculation in content.mdx: 300,000 ÷ 300 months = 1,000; + 2,000 = 3,000"
    },
    {
      "given": {
        "savings": 1000000,
        "age": 65,
        "until": 95,
        "rate": 5,
        "inflation": 3,
        "ss": 2000
      },
      "expect": {
        "fromSavings": 3702.2995966466206,
        "total": 5702.299596646621,
        "withdrawn": 2113661.308557735
      },
      "source": "Social Security Administration, Cost-of-Living Adjustment (COLA) information: benefits rise each year with prices (https://www.ssa.gov/cola/); the same rule and value as the retirement withdrawal calculator’s example ($1,000,000 at 5% over 30 years, raised 3% a year); checked in Python"
    },
    {
      "given": {
        "savings": 120000,
        "age": 70,
        "until": 80,
        "rate": 0,
        "inflation": 10,
        "ss": 0,
        "pension": 1500,
        "pcola": false
      },
      "expect": {
        "fromSavings": 627.4539488251157,
        "fromOther": 1500,
        "lastYear": 2979.503589840906
      },
      "source": "Social Security Administration, Cost-of-Living Adjustment (COLA) information: benefits rise each year with prices (https://www.ssa.gov/cola/); hand calculation in content.mdx: 120,000 ÷ (12 × (1.1^10 − 1) ÷ 0.1) = 627.45; last year 627.45 × 1.1^9 + 1,500 = 2,979.50"
    }
  ],
  "sources": [
    "Social Security Administration, Cost-of-Living Adjustment (COLA) information. https://www.ssa.gov/cola/",
    "Social Security Administration, my Social Security (your benefit estimate). https://www.ssa.gov/myaccount/",
    "Internal Revenue Service, Publication 915, Social Security and Equivalent Railroad Retirement Benefits (taxes on benefits). https://www.irs.gov/publications/p915"
  ],
  "related": [
    "retirement",
    "retirement-withdrawal",
    "annuity-payout"
  ],
  "changelog": []
}