Retirement Planner Calc

Last Updated: May 2026

Retirement Income Calculator

How long will your savings last in retirement?

This calculator shows your monthly withdrawal timeline. Enter your starting balance, your monthly withdrawal amount, and your expected portfolio return. It shows how many years your money will last and plots the drawdown year by year.

The 4% rule is the most widely used framework for sustainable withdrawals. On a $1 million portfolio, 4% is $40,000 per year, about $3,333 per month. At a 5% return, that portfolio lasts indefinitely. At a 4% return with 4% withdrawals, the balance stays flat. Below 4% return with 4% withdrawals, the balance slowly declines.

Social Security income extends your runway. A $2,000 monthly Social Security benefit reduces your required portfolio withdrawal by $24,000 per year, making your savings last significantly longer.

Your Inputs

Outcome

Your savings will last until age 96

Spending Adjustment

New monthly spending: $5,000 · money lasts to age 96

Safe Withdrawal Rate Comparison

RateMonthly IncomeLasts Until
3% (conservative)$2,000Age 110
4% (standard)$2,667Age 110
5% (aggressive)$3,333Age 110
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Portfolio Balance Over Time

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Frequently Asked Questions

At a 4% annual withdrawal rate, $1 million supports $40,000 per year or $3,333 per month and has historically lasted 30 years with high probability. At a 5% rate ($50,000 per year), the same $1 million lasts approximately 20 to 25 years depending on investment returns. At a 3% rate ($30,000 per year), it lasts indefinitely in most historical scenarios. With a Social Security benefit of $2,000 per month on top, a $1 million portfolio at 4% withdrawal generates $5,333 per month in total retirement income — sufficient for many retirees to live comfortably without depleting their savings.
Sequence of returns risk is the danger of experiencing poor investment returns in the early years of retirement. Even if average long-term returns are positive, a major market decline in years one through five of retirement can permanently impair your portfolio's ability to sustain withdrawals. If you withdraw 4% of $1 million ($40,000) in year one and the market falls 30%, your portfolio drops to $660,000 — you have already taken out $40,000. At that reduced balance, the same dollar withdrawal now represents a 6% withdrawal rate that is much harder to sustain. This is why maintaining a cash reserve of one to two years of expenses in retirement is widely recommended.
The 4% rule was derived from historical stock and bond return data and provides a high probability of portfolio survival over 30 years. It remains a widely accepted starting point. Use a lower rate — 3% to 3.5% — if you retire before age 60 (longer retirement period), have a conservative portfolio, or want maximum security. Use a higher rate — 4.5% to 5% — if you have significant other income (pension, Social Security, rental income) that reduces portfolio dependency, or if you are willing to adjust spending if markets underperform. The retirement income calculator above lets you model any withdrawal rate and see the impact on your projected runout age.
At 3% annual inflation, purchasing power is cut in half in approximately 24 years. A $5,000 monthly retirement income in 2026 will have the purchasing power of only $2,500 in 2050. This is why fixed withdrawal amounts — not adjusted for inflation — leave retirees increasingly short over time. The 4% rule accounts for inflation by increasing the annual withdrawal by inflation each year. Social Security benefits are also adjusted annually by the Social Security COLA — providing a built-in inflation hedge for that portion of income.
The bucket strategy divides retirement assets into three buckets based on time horizon. Bucket 1 holds one to two years of living expenses in cash or very short-term instruments — providing stability and covering immediate needs without selling investments. Bucket 2 holds three to ten years of income needs in bonds, dividend stocks, and other moderate-return assets. Bucket 3 holds long-term growth assets — equities — that can withstand market volatility because they won't be needed for a decade or more. When Bucket 1 is depleted, it is refilled by selling assets from Bucket 2. This structure reduces sequence-of-returns risk by preventing forced selling of equities during market downturns.

Withdrawal Strategies That Make Your Money Last

The 4% rule: Withdraw 4% of your starting portfolio balance in year one. Increase that dollar amount by inflation each year. Based on Bengen's 1994 study, this approach had a 95% success rate over 30-year retirement periods.

The fixed-dollar approach: Withdraw the same dollar amount every month regardless of market performance. Simpler than the 4% rule but leaves you with less purchasing power as inflation rises.

The percentage approach: Withdraw a fixed percentage of your current balance each year. You never run out of money because you always withdraw less as the balance falls, but your income is unpredictable.

Dynamic spending: Increase or decrease withdrawals based on portfolio performance. Withdraw more in strong market years, less after down years. This extends longevity significantly but requires discipline.

Bucket strategy: Keep 1 to 2 years of expenses in cash. Keep 3 to 7 years in bonds. Keep the rest in stocks. Replenish the cash bucket from bonds when it runs low. Replenish bonds from stocks during up markets.

Projections are estimates based on your inputs and assumed rates of return. Actual investment performance, tax rates, and Social Security benefits will differ. This calculator does not constitute financial, tax, or legal advice. Consult a qualified financial advisor for personalized retirement planning.

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