Retirement Income Calculator

The classic 4% rule says you can withdraw 4% of your starting nest egg in year one and adjust that dollar amount upward by inflation each year, with ~95% probability the portfolio lasts 30 years (Trinity Study). Modern research suggests 3.5–4% for typical 30-year retirements and 3–3.25% for very long ones.

Annual income = nest egg × withdrawal rate. Monthly income = annual income ÷ 12. Total income = portfolio income + other income (Social Security, pensions, rental). To work backwards: required nest egg = desired annual income ÷ withdrawal rate (e.g. $40k ÷ 4% = $1M).

Multiply annual expenses by 25 (4% rule) or 33 (3% rule). Spend $50,000/year → you need $1.25M–$1.65M in invested assets, not counting Social Security or pensions. Add SS and the required portfolio drops by ~$500k (SS at $20k/yr ÷ 4%).

Yes — enter your expected Social Security check (plus any pensions or rental income) in the 'other monthly income' field. The average US Social Security benefit is ~$22,000/year (~$1,830/month); check your personalized estimate at ssa.gov/myaccount.

Use a perpetual withdrawal rate of ~3%. A $1M portfolio supports ~$30,000/year indefinitely, assuming inflation-adjusted withdrawals and a 60/40 or 70/30 stock/bond mix. This is the right target for FIRE retirees with 40–60 year horizons.

The 4% rule comes from the 1998 Trinity Study, which back-tested historical US market data and found that retirees withdrawing 4% in year one (with annual inflation adjustments) had a 95%+ chance of money lasting 30 years across all 50-year rolling windows. Updated research using lower expected returns suggests 3.5–4% is the modern safe range.

30-year retirement: 4% baseline. 40+ year retirement (FIRE): 3.25–3.5%. 20-year retirement (retire at 75): 5%+ is reasonable. Very conservative or low-equity portfolio: lower the rate by 0.5%. Flexible spending in down years: you can start higher (4.5%).

Two retirees with identical 30-year average returns can end up worlds apart depending on when the bad years hit. A big drop in year 1–5 is far worse than the same drop in year 20+, because withdrawals during a drawdown turn paper losses into permanent ones. Mitigations: 1–3 years of expenses in cash/bonds, dynamic withdrawal rules, or lowering the withdrawal rate.

No — 4% is a pre-tax withdrawal. Traditional 401(k) and IRA withdrawals are taxed as ordinary income; Roth withdrawals are tax-free; taxable brokerage gains are taxed at capital gains rates. Plan for ~10–15% effective tax in retirement for most US retirees and reduce your usable income accordingly.

No — only liquid invested assets count for the 4% rule. Your house provides shelter (reducing expenses if mortgage-free) but doesn't generate withdrawable cash unless you downsize or take a reverse mortgage. Subtract any remaining mortgage from your expenses for clarity.

Only for shorter retirements (≤20 years) or with flexibility to cut spending in down years. At 5%, historical data shows ~25% failure rate over 30 years; at 6%, ~40%. Use higher rates only with backup plans — part-time work, downsizing, or guaranteed income from Social Security/pension.

The 4% rule already bakes in inflation — you withdraw 4% of the starting balance in year 1, then adjust that dollar amount upward by CPI each year. So $40k from a $1M portfolio in year 1 becomes ~$72k by year 30 at 3% inflation. Use our Inflation Calculator to see how the target nominal income grows over a retirement.

At 4% that's $20k/year ($1,667/month) of portfolio income. Combined with average Social Security (~$22k/yr) = ~$42k/year. Possible in a low-cost-of-living area with paid-off housing, tight for most US locations. Run scenarios with the calculator to see what's realistic.

At 4% that's $40k/year ($3,333/month) plus typical Social Security gets you to ~$62k/year. Comfortable middle-class retirement in most US areas. Less comfortable in high-cost coastal cities. See our '$1M retirement' guide for full state-by-state breakdown.

Buying a single-premium immediate annuity (SPIA) with 20–30% of the portfolio can provide guaranteed lifetime income and reduce sequence-of-returns risk. The trade-off: annuities lock up principal. Pair this calculator with conversations about partial annuitization if longevity risk is your main concern.