Does this calculator tell me if my money will last for my whole retirement?

Not directly. It provides a first-year snapshot of savings and income. Longevity, market volatility, inflation, and tax dynamics require more advanced modeling to assess sustainability.

Should I use the 4% rule as my withdrawal rate?

The 4% rule is a common starting point based on historical research, but it may or may not fit your situation. You might choose a lower rate for more safety or adjust based on retirement length, flexibility, and risk tolerance.

How should I estimate my Social Security benefits?

You can use Social Security Administration statements or online SSA tools to estimate benefits. This calculator accepts any annual number you choose, so you can test multiple claiming ages or scenarios.

Does this account for taxes on withdrawals, pension, or Social Security?

No. All figures are pre-tax. For tax-aware planning, you’ll need tools that consider account types, tax brackets, and how different income sources are taxed.

finance calculator

Updated Retirement Calculator

Project retirement savings growth with contributions, then combine a withdrawal rate with pension and Social Security to estimate annual retirement income.

Results

Years to retirement: 25
Projected savings at retirement: $1,585,988
Withdrawal from savings (first year): $63,440
Total annual retirement income: $87,440

How to use this calculator

Enter your current age and desired retirement age.
Enter your current retirement savings balance and how much you plan to contribute each month.
Set an assumed annual investment return and your preferred annual withdrawal rate (for example, 4%).
Enter any annual pension income and Social Security benefits you expect to receive at retirement.
Review years to retirement, projected savings at retirement, first-year portfolio withdrawal, and total annual retirement income.
Adjust contributions, retirement age, withdrawal rate, or pension/SS assumptions to see how your retirement income estimate changes.

Inputs explained

Current age: Your age today. Combined with retirement age, this determines how many years you have left to save and grow your investments.
Retirement age: The age at which you plan to retire from full-time work. Used to calculate years to retirement and the end point of the growth projection.
Current savings: Total amount you currently have saved toward retirement (across all accounts you want to include in this projection).
Monthly contribution: The amount you plan to contribute each month from now until retirement. Include all sources (employee, employer match, and additional savings) if you want a combined view.
Annual return (%): Your assumed average annual investment return before taxes and inflation. Use conservative values, such as 4–7% for stock-heavy portfolios, depending on risk tolerance.
Annual withdrawal rate (%): The percentage of your portfolio you plan to withdraw in the first year of retirement (for example, 4% in a classic “4% rule” style plan).
Pension (annual): Any annual pension income you expect to receive at retirement. If it starts later or is not inflation-adjusted, that nuance is not modeled here.
Social Security (annual): Your estimated annual Social Security benefits. You can use a figure from SSA estimates or your own planning assumptions.

How it works

We calculate years to retirement as retirement age minus current age.

We project future savings by compounding your current savings and monthly contributions to retirement age at the assumed annual return (converted to a monthly rate).

We then apply your chosen withdrawal rate to the projected savings balance to estimate a first-year withdrawal amount from your portfolio.

We add your annual pension and Social Security amounts to that withdrawal figure to estimate total annual retirement income in the first year of retirement.

This is a snapshot-style estimate; it does not model how withdrawals, returns, inflation, or benefits evolve over time.

Formula

Years to retirement = Retirement age − Current age\nMonthly rate r = (1 + Annual return)^(1/12) − 1\nProjected savings ≈ Current savings × (1 + r)^(12 × years) + contribution stream\nFirst-year withdrawal = Projected savings × (Withdrawal rate ÷ 100)\nTotal annual income = First-year withdrawal + Pension (annual) + Social Security (annual)

When to use it

Checking whether your current savings rate and retirement age target produce a reasonable first-year retirement income.
Comparing scenarios where you retire earlier vs later to see how years to save affect projected savings and income.
Testing the impact of higher or lower withdrawal rates (for example, 3.5% vs 4.5%) on sustainable income.
Evaluating how adding or changing pension and Social Security assumptions changes your reliance on portfolio withdrawals.
Using as a starting point for conversations with a financial planner about whether you are on track for your desired lifestyle.

Tips & cautions

Use conservative return and withdrawal rate assumptions, especially if you expect a long retirement or are risk-averse.
If your pension or Social Security start at ages different from your retirement age, treat this result as an average first-year snapshot and refine with more detailed modeling.
Revisit this calculator every year or two as your savings, contributions, markets, and goals change.
Layer inflation assumptions on top of this model (for example, 2–3% per year) when thinking about long-term purchasing power.
Complement this with tools that model sequence-of-returns risk or dynamic withdrawals for a more robust retirement plan.
Does not model inflation, taxes, or changing withdrawal patterns over time; all figures are in nominal, pre-tax dollars.
Assumes constant monthly contributions and a fixed average annual return; real-life savings and returns vary from year to year.
Treats pension and Social Security as if they start at retirement age and remain constant; real benefits can start later and adjust with cost-of-living.
Does not consider required minimum distributions (RMDs), tax brackets, or separate tax treatment of account types (pre-tax vs Roth).

Worked examples

Age 40 retiring at 65 with steady contributions

Current age = 40, retirement age = 65 (25 years to retirement).
Current savings = $200,000, monthly contribution = $1,000, annual return = 6%.
Withdrawal rate = 4%, pension = $0, Social Security = $24,000.
The calculator projects savings at retirement, multiplies by 4% for the first-year withdrawal, and adds Social Security to estimate total income.

Retiring early at 60 vs traditional 67

Run the calculator first with retirement age = 60, then with retirement age = 67, holding other inputs constant.
Compare years to retirement, projected savings, and total annual income between the two runs.
Interpretation: see how working additional years and delaying retirement can significantly change your projected income.

Adding a pension to the mix

Start with a baseline run where pension = $0.
Then rerun with pension = $15,000 annually to see how much less portfolio withdrawal you might need.
Interpretation: a pension can reduce pressure on savings and allow for a lower withdrawal rate or earlier retirement.

Deep dive

Use this updated retirement calculator to project savings growth to retirement and estimate first-year retirement income from withdrawals, pension, and Social Security.

Enter age, savings, contributions, return, withdrawal rate, pension, and Social Security to see whether your plan produces enough annual retirement income.

Ideal for a quick retirement readiness check before moving on to more detailed, tax-aware retirement planning.

FAQs

Does this calculator tell me if my money will last for my whole retirement?: Not directly. It provides a first-year snapshot of savings and income. Longevity, market volatility, inflation, and tax dynamics require more advanced modeling to assess sustainability.
Should I use the 4% rule as my withdrawal rate?: The 4% rule is a common starting point based on historical research, but it may or may not fit your situation. You might choose a lower rate for more safety or adjust based on retirement length, flexibility, and risk tolerance.
How should I estimate my Social Security benefits?: You can use Social Security Administration statements or online SSA tools to estimate benefits. This calculator accepts any annual number you choose, so you can test multiple claiming ages or scenarios.
Does this account for taxes on withdrawals, pension, or Social Security?: No. All figures are pre-tax. For tax-aware planning, you’ll need tools that consider account types, tax brackets, and how different income sources are taxed.

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This updated retirement calculator is an educational tool that simplifies many aspects of retirement planning, including investment returns, inflation, taxes, and benefit start ages. It should not be used as a sole basis for retirement decisions. Always consult a qualified financial planner or tax professional when designing a detailed retirement strategy.