Retirement Income Calculator
Calculate your estimated total monthly retirement income by combining investment account withdrawals, pension payments, and Social Security. Ideal for retirement readiness planning.
Last updated: May 2026
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About this calculator
Retirement income typically comes from three buckets: tax-advantaged savings (401(k) and IRA), defined-benefit pensions, and Social Security. For savings accounts, a sustainable withdrawal is expressed as an annual withdrawal rate applied to the total balance, then divided by 12 for a monthly figure. The widely-cited 4% rule suggests withdrawing 4% of your portfolio annually, though your personal rate should reflect your expected retirement length and risk tolerance. The full formula is: Monthly Income = ((401k + IRA) × withdrawalRate / 100 / 12) + monthlyPension + monthlySocialSecurity. Adding all three streams gives you a realistic picture of whether your retirement income covers your expenses without depleting savings prematurely.
How to use
Assume you have a $500,000 combined 401(k)/IRA balance, a $1,200/month pension, $1,500/month Social Security, and a 4% annual withdrawal rate. Step 1 — Investment income: ($500,000 × 4% / 100) / 12 = $20,000 / 12 = $1,667/month. Step 2 — Add pension: $1,667 + $1,200 = $2,867/month. Step 3 — Add Social Security: $2,867 + $1,500 = $4,367/month total retirement income. Compare this to your estimated monthly expenses to gauge whether you are on track.
Frequently asked questions
What is a safe withdrawal rate for retirement savings?
The 4% rule, derived from the Trinity Study, suggests withdrawing 4% of your portfolio in year one and adjusting for inflation annually, giving a high probability of not running out of money over a 30-year retirement. However, with today's lower bond yields and longer life expectancies, many planners now recommend 3%–3.5%. Your ideal rate depends on your asset allocation, expected retirement length, flexibility to reduce spending, and other guaranteed income sources like pensions or Social Security. A financial planner can help model different scenarios.
How do I estimate my monthly Social Security benefit for retirement planning?
Your Social Security benefit depends on your 35 highest-earning years and the age at which you claim. You can get a personalized estimate by creating a free account at ssa.gov and reviewing your Social Security Statement. As a rule of thumb, the average retired worker receives around $1,800–$2,000/month in 2024, while the maximum for someone who earned the wage base limit for 35 years and claims at 70 is over $4,800/month. Use our Social Security Benefits Calculator for a quick estimate before checking your official SSA statement.
Should I include home equity or rental income in my retirement income calculation?
Home equity and rental income are legitimate and often substantial retirement income sources that deserve a place in your plan. Rental income is relatively straightforward to include as a monthly cash flow. Home equity can be accessed through downsizing, a reverse mortgage (for homeowners 62+), or a HELOC, though each option has distinct tax and liquidity implications. Including these assets in your plan can meaningfully reduce the pressure on your 401(k)/IRA withdrawal rate, potentially extending the life of your portfolio by years.