Retirement Income Calculator

Retirement Income is evaluated from Retirement Portfolio Value, Annual Withdrawal Rate and Social Security. The calculation reports Portfolio Withdrawal, Guaranteed Income and Total Monthly Income.

Results

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About the Retirement Income Calculator

Retirement Income is treated here as a quantitative relation between Retirement Portfolio Value, Annual Withdrawal Rate, Social Security and Pension Income and Portfolio Withdrawal, Guaranteed Income, Total Monthly Income and Total Annual Income.

The calculator uses a multi formula configuration. Each reported value is read as a direct evaluation of the stored rules with the declared field formats and units.

Formula basis:
Portfolio Monthly = Portfolio Value x Annual Withdrawal Rate / 12
Guaranteed Monthly = Social Security + Pension + Other
Total Monthly = Portfolio Monthly + Guaranteed Monthly
Total Annual = Total Monthly x 12

Interpret the outputs in the order shown by the result fields. Optional inputs affect only the outputs that depend on those variables.

Formula & How It Works

The calculation applies the following relations exactly as recorded in the metadata:

Portfolio Monthly = Portfolio Value x Annual Withdrawal Rate / 12
Guaranteed Monthly = Social Security + Pension + Other
Total Monthly = Portfolio Monthly + Guaranteed Monthly
Total Annual = Total Monthly x 12

Each output field is produced by substituting the supplied inputs into the relevant relation and then applying the declared rounding or text format.

Worked Examples

Example 1: Classic Middle-Class Retirement

Inputs

portfolio_value: 800000 withdrawal_rate: 4 social_security: 2100 pension_income: 0 rental_income: 0
Portfolio Withdrawal: $2,667. Guaranteed Income: $2,100. Total Monthly Income: $4,767. Total Annual Income: $57,200

With Retirement Portfolio Value = 800,000, Annual Withdrawal Rate = 4, Social Security = 2,100 and Pension Income = 0 as the stated inputs, the result is Portfolio Withdrawal = $2,667, Guaranteed Income = $2,100 and Total Monthly Income = $4,767. Each value corresponds to the declared output fields.

Example 2: Well-Funded Retirement — Triple Sources

Inputs

portfolio_value: 1500000 withdrawal_rate: 3.5 social_security: 2800 pension_income: 2200 rental_income: 1500
Portfolio Withdrawal: $4,375. Guaranteed Income: $6,500. Total Monthly Income: $10,875. Total Annual Income: $130,500

With Retirement Portfolio Value = 1,500,000, Annual Withdrawal Rate = 3.5, Social Security = 2,800 and Pension Income = 2,200 as the stated inputs, the result is Portfolio Withdrawal = $4,375, Guaranteed Income = $6,500 and Total Monthly Income = $10,875. Each value corresponds to the declared output fields.

Example 3: Social Security Bridge Strategy

Inputs

portfolio_value: 600000 withdrawal_rate: 5.5 social_security: 0 pension_income: 0 rental_income: 0
Portfolio Withdrawal: $2,750. Guaranteed Income: $0. Total Monthly Income: $2,750. Total Annual Income: $33,000

With Retirement Portfolio Value = 600,000, Annual Withdrawal Rate = 5.5, Social Security = 0 and Pension Income = 0 as the stated inputs, the result is Portfolio Withdrawal = $2,750, Guaranteed Income = $0 and Total Monthly Income = $2,750. Each value corresponds to the declared output fields.

Example 4: Frugal FIRE Retirement

Inputs

portfolio_value: 1000000 withdrawal_rate: 3.3 social_security: 800 pension_income: 0 rental_income: 600
Portfolio Withdrawal: $2,750. Guaranteed Income: $1,400. Total Monthly Income: $4,150. Total Annual Income: $49,800

With Retirement Portfolio Value = 1,000,000, Annual Withdrawal Rate = 3.3, Social Security = 800 and Pension Income = 0 as the stated inputs, the result is Portfolio Withdrawal = $2,750, Guaranteed Income = $1,400 and Total Monthly Income = $4,150. Each value corresponds to the declared output fields.

Common Use Cases

  • Calculate total monthly retirement income from all sources
  • See if your retirement savings will support your desired lifestyle
  • Model different withdrawal rates from your investment portfolio