# What retirement income will I have?

Computes the monthly income your retirement savings can pay until an age you choose, rising with inflation, plus Social Security and pensions.

- Page: https://www.acalculator.org/finance/retirement-income-calculator
- JSON spec: https://www.acalculator.org/finance/retirement-income-calculator.json
- Version: 342250a6562e

## Default answer

Example with the default inputs (Savings at retirement $1,000,000.00, Age the income starts 65, Make it last until age 95, Yearly return 5%, Raise the income each year by 3%, Social Security $2,000.00, Pension and other income $0.00, The pension rises each year too No): 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.

## Inputs

| Key | Label | Description |
| --- | --- | --- |
| savings | Savings at retirement | What you have saved for retirement when the income starts, in every account together. |
| age | Age the income starts | Your age when you start drawing on your savings. |
| until | Make it last until age | The age your savings should last to. They run out at that age. |
| rate | Yearly return | The yearly return on what is left of your savings. It stays the same every year. |
| inflation | Raise the income each year by | How much your savings income and Social Security rise each year, usually the inflation rate. |
| ss | Social Security | Your Social Security benefit when the income starts, per month or per year. |
| pension | Pension and other income | A pension, annuity or other regular income when the income starts, per month or per year. |
| pcola | The pension rises each year too | Turn on if your pension has a cost-of-living raise like Social Security. Many pensions do not. |

## Outputs

| Key | Label | Description |
| --- | --- | --- |
| total | Your monthly retirement income | From savings plus Social Security plus pension, in the first month. |
| fromSavings | From your savings | The first-year monthly withdrawal that, rising each year, uses up your savings exactly at the age you chose. |
| fromOther | From Social Security and pensions | Social Security plus pension and other income in the first month. |
| yearly | Per year, first year | Your monthly retirement income × 12. |
| lastYear | Monthly income in the last year | Your total monthly income in the last year of the plan, after the yearly raises. |
| withdrawn | Total taken from savings | Every withdrawal from your savings added up, until the age you chose. |

## 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.

## Worked examples

1. savings = $300,000.00, age = 65, until = 90, rate = 0%, inflation = 0%, ss = $2,000.00 gives fromSavings = $1,000.00, fromOther = $2,000.00, total = $3,000.00, yearly = $36,000.00, withdrawn = $300,000.00. Source: Social Security Administration, Cost-of-Living Adjustment (COLA) information: benefits rise each year with prices (https://www.ssa.gov/cola/).
2. savings = $1,000,000.00, age = 65, until = 95, rate = 5%, inflation = 3%, ss = $2,000.00 gives fromSavings = $3,702.30, total = $5,702.30, withdrawn = $2,113,661.31. Source: Social Security Administration, Cost-of-Living Adjustment (COLA) information: benefits rise each year with prices (https://www.ssa.gov/cola/).
3. savings = $120,000.00, age = 70, until = 80, rate = 0%, inflation = 10%, ss = $0.00, pension = $1,500.00, pcola = no gives fromSavings = $627.45, fromOther = $1,500.00, lastYear = $2,979.50. Source: Social Security Administration, Cost-of-Living Adjustment (COLA) information: benefits rise each year with prices (https://www.ssa.gov/cola/).

## FAQ

### How much monthly income will my retirement savings give me?

It depends on how long the money must last, the return it earns, and how much the income rises each year. $1,000,000 from 65 to 95 at a 5% return, rising 3% a year, pays $3,702.30 a month in the first year. With $2,000 of Social Security, that is $5,702.30 a month.

### Why does my income from savings rise each year?

So it keeps up with prices. The calculator raises the withdrawal by the rate you choose at the start of each year, as Social Security raises benefits with its cost-of-living adjustment. Set the raise to 0% for a flat income.

### What happens to my savings at the end?

They run out exactly at the age you choose. If you might live longer, choose a later age: the monthly income is lower, but it lasts longer.

### Does my pension rise with inflation?

Many private pensions do not, so the calculator keeps the pension flat unless you turn on its yearly raise. Federal and some state pensions have cost-of-living raises.

### How is this different from the 4% rule?

The 4% rule is a rule of thumb for a first-year withdrawal. This calculator works out the withdrawal that uses up your savings exactly at your chosen age with the return you enter, so it can be more or less than 4%.

### Is the income before or after tax?

Before tax. Withdrawals from traditional 401(k)s and IRAs are taxed as income, and part of Social Security can be taxed. Roth withdrawals are usually tax-free.

## 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