Retirement Income Calculator

This calculator helps you compare multiple ways to generate retirement income: a portfolio-based safe withdrawal plan, a lump-sum annuity purchase, and a backward calculation to estimate required capital for a desired income level. Enter your current savings, expected returns, inflation, and other guaranteed income sources to see first-year income estimates and required capital assumptions.

The tool is designed to provide clear, comparable outputs so you can evaluate trade-offs (flexibility versus guaranteed income). It does not replace personalized financial advice and should be used with awareness of model limits and input uncertainty.

Updated Nov 28, 2025

Calculation method

Estimates first-year withdrawal amount using a user-specified withdrawal rate applied to projected portfolio value at retirement, then adds guaranteed income sources.

Inputs

Current age

Min 18 · Max 100

Planned retirement age

Min 50 · Max 100

Life expectancy (age)

Min 60 · Max 120

Current retirement savings (total)

Min 0

Annual contribution before retirement

Min 0

Expected annual return before retirement (decimal)

Min -0.2 · Max 0.2

Expected annual return in retirement (decimal)

Min -0.2 · Max 0.2

Expected annual inflation (decimal)

Min -0.05 · Max 0.2

Desired annual retirement income (before tax)

Min 0

Other guaranteed annual income (pension, annuity income guaranteed today)

Min 0

Estimated Social Security annual benefit (at planned start age)

Min 0

Lump sum intended for annuity purchase

Min 0

Illustrative annuity payout rate (decimal)

Min 0 · Max 0.2

Planned initial withdrawal rate (percent)

Min 0.5 · Max 10

Results

Updates as you type

Projected portfolio at retirement

$1,061,238.10

Estimated first-year withdrawal from portfolio

$42,449.52

Total estimated annual income (portfolio + guaranteed sources)

$70,449.52

Years in retirement (life expectancy - retirement age)

Output	Value	Unit
Projected portfolio at retirement	$1,061,238.10	USD
Estimated first-year withdrawal from portfolio	$42,449.52	USD
Total estimated annual income (portfolio + guaranteed sources)	$70,449.52	USD
Years in retirement (life expectancy - retirement age)	23	years

Primary result$1,061,238.10

Visualization

Points

Methodology

The methods use standard financial math: compound growth to project savings to retirement, a constant-percentage withdrawal applied to projected capital for SWR estimates, and simple division to estimate capital required for a target income. An annuity illustration uses a user-specified payout rate to convert principal to an annual guaranteed payment.

We follow best-practice engineering and operational controls for calculation integrity and secure handling of inputs, referencing general guidance from standards bodies for software assurance and data protection. This includes using reproducible formulas, documenting assumptions, and advising users on input sensitivity and scenario testing.

Worked examples

Example 1: A 60-year-old with $500,000, retiring at 67 with 4% assumed withdrawal expects an initial portfolio withdrawal of roughly $X (portfolio dependent).

Example 2: Purchasing a $200,000 annuity at a 4% payout rate yields roughly $8,000/year guaranteed, which can be combined with pension and Social Security for total guaranteed income.

Further resources

External guidance

Expert Q&A

How accurate are the results?

Results are scenario estimates based on the inputs and simplified financial formulas. They are sensitive to assumptions about returns, inflation, and longevity. Use multiple scenarios and consult a qualified advisor for tailored planning.

Does this include taxes and fees?

No. This tool presents pre-tax amounts and illustrative annuity rates. Taxes, transaction costs, and insurance or annuity fees materially affect net income and should be considered separately.

Why are there multiple methods?

Different methods reflect different retirement strategies: portfolio withdrawals prioritize flexibility, annuities prioritize guaranteed income, and the target-income approach shows the capital needed to meet a target given a withdrawal assumption.

Can I rely on a single withdrawal rate forever?

A single fixed withdrawal rate is a simplification. Sequence-of-returns risk and real-return variability can deplete portfolios faster than simple formulas predict. Consider stress testing with lower return scenarios and consult a professional.

Sources & citations

National Institute of Standards and Technology (NIST) — general guidance — https://www.nist.gov
ISO 22222 — Personal financial planning standard (overview) — https://www.iso.org/standard/41077.html
IEEE — Software engineering and reliability resources — https://www.ieee.org
U.S. Occupational Safety and Health Administration (OSHA) — operational safety standards — https://www.osha.gov
Social Security Administration — benefit estimators and rules — https://www.ssa.gov