Complex Retirement Calculator: Social Security, 401(k), IRA & Pension
Retirement income in the U.S. comes from Social Security, employer-sponsored plans, personal savings, and other assets.
Social Security benefits are calculated from a worker’s earnings history and the age at which benefits begin.
Retirement Calculator: Estimate Your Monthly Income in Retirement
How to Use the Retirement Calculator
| Step | What to Enter | Example |
|---|---|---|
| 1. Current age | Your age today | 35 |
| 2. Retirement age | The age you plan to retire | 67 |
| 3. Plan to age | The age you want your savings to last through | 92 |
| 4. Gross salary / yr | Your annual salary before taxes | $85,000 |
| 5. Current savings | Your current 401(k) or IRA balance | $60,000 |
| 6. Your contribution | The percentage of your salary you contribute | 10% |
| 7. Advanced assumptions (optional) | Select Show advanced assumptions to review additional settings | Not applicable |
| 8. Review your income | Check your estimated pension, Social Security, savings, and other income | $6,930/mo |
| 9. Check your status | Compare your projected income with your retirement goal | On track |
| 10. Review your savings | Check your projected savings at retirement and how long they may last | $1,026,224 |
| 11. Explore the charts | Tap or hover over the charts for details | Not applicable |
| 12. Try different scenarios | Change an input and compare the new results | 10% → 15% |
WEALTH FOR SENIORS
How Long Will $1.2 Million Last in Retirement?
See how long $1.2 million could last based on your spending, retirement age, Social Security and investment returns.
See How Long Your $1.2M Could Last
How Much Do You Need to Retire?
You must be tired of this answer, but there really is no single dollar amount one needs to retire comfortably.
For one person, $500,000 may be enough.
Another retiree may need $1 million, $2 million, or more.
It comes down to factors such as your
- Lifestyle
- Housing costs
- Hocation
- Social Security benefits
- Pension income
- Taxes
- Healthcare expenses
- Investments, and
- How long your retirement may last.
Example
Suppose you expect to spend $60,000 per year in retirement and expect to receive $25,000 from Social Security.
That leaves an annual income gap of:
$60,000 − $25,000 = $35,000
Your retirement portfolio would need to help cover that $35,000 gap, while also accounting for inflation, taxes, investment returns, healthcare costs, and unexpected expenses.
How Social Security Affects How Much You Need to Save
If Social Security covers a large portion of your basic expenses, you may not need as large an investment portfolio as someone who expects to receive a smaller benefit.
Claiming benefits before your full retirement age generally results in a lower monthly benefit. Waiting beyond full retirement age can increase your monthly benefit until age 70.
Because Social Security can provide income throughout retirement, your claiming decision should be considered alongside your savings, expected expenses, health, longevity, and other sources of income.
For example, imagine two retirees who each want $60,000 of annual income:
| Retiree | Social Security | Pension | Income Needed From Savings |
|---|---|---|---|
| Retiree A | $30,000 | $15,000 | $15,000 |
| Retiree B | $25,000 | $0 | $35,000 |
Both retirees want the same $60,000 lifestyle, but Retiree B has a much larger income gap to cover.
Pensions and Other Retirement Income
Social Security is only one possible source of retirement income.
A pension, rental property, annuity, part-time job, royalties, or other reliable income can also reduce the amount your investment portfolio needs to provide.
| Income Source | What It Means | Include In Retirement Plan? |
|---|---|---|
| Social Security | Government retirement benefit | Yes |
| Pension | Regular payments from an employer/government plan | Yes |
| 401(k) / 403(b) | Money you withdraw from your retirement savings | Yes* |
| IRA Withdrawals | Income from traditional or Roth IRA savings | Yes* |
| Annuity Income | Regular payments from an annuity | Yes |
| Other Retirement Income | Rental income, part-time work, etc. | If reliable |
Taxes
For example, you might have money in:
- A traditional 401(k)
- A traditional IRA
- A Roth IRA
- A taxable brokerage account
- Bank accounts and CDs
- Annuities
- Other investments
Withdrawals from traditional retirement accounts can generally be taxable, while qualified Roth IRA withdrawals can generally be tax-free.
Social Security benefits can also become partially taxable depending on your overall income.
This means someone with $1 million in retirement savings may have a different amount of after-tax spending power than another person with the same $1 million but a different mix of accounts.
How Much Can $500,000 Generate in Retirement?
One way to estimate potential portfolio income is to apply a withdrawal rate.
For example, using a hypothetical 4% initial withdrawal rate:
| Retirement Savings | 4% Initial Withdrawal |
|---|---|
| $500,000 | $20,000 per year |
| $750,000 | $30,000 per year |
| $1 million | $40,000 per year |
| $1.5 million | $60,000 per year |
| $2 million | $80,000 per year |
These figures are simple illustrations, not guaranteed retirement income.
How Housing Costs Affect Retirement
Someone who has completely paid off their home may have substantially lower monthly expenses than someone entering retirement with a large mortgage.
But a paid-off home doesn’t mean housing is free.
You may still have:
- Property taxes
- Homeowners insurance
- Maintenance and repairs
- Utilities
- HOA fees
- Major replacement costs
Renters also need to account for the possibility that housing costs will increase over time.
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