A simple, free retirement income calculator to estimate how long your savings will last and plan your withdrawal strategy. Perfect for individuals approaching or in retirement. No Signup Required.
This calculator is for illustrative purposes only and does not guarantee investment results.
Past performance is not indicative of future returns.
The concept of retirement is relatively modern, emerging widely only in the 20th century. Before Social Security was established in 1935, approximately 78% of Americans over 65 were still working. Today, the average retirement length has expanded to 20+ years as life expectancy increases. Interestingly, the "4% rule" for retirement withdrawals was developed in 1994 by financial advisor William Bengen, who found that no historical 30-year period would have depleted a portfolio with this withdrawal rate. However, recent studies suggest this rate may need adjustment in today's low-yield environment.
Retirement calculators use Monte Carlo simulations to model thousands of potential market scenarios rather than linear projections. These simulations incorporate sequence-of-returns risk—the impact of when market downturns occur during retirement. Early negative returns can devastate a portfolio even if long-term averages appear sufficient. Modern calculators employ stochastic modeling with log-normal distribution of returns and autocorrelation factors to better represent market behavior. Some advanced models also incorporate mortality tables to calculate the probability of outliving your money, creating a more comprehensive picture than simple compound interest formulas.
Our Retirement Income Calculator helps you estimate how long your retirement savings will last based on your withdrawal strategy, investment returns, and inflation. It's perfect for individuals who are approaching retirement or already retired and want to plan a sustainable withdrawal strategy.
Enter your current retirement savings, desired annual withdrawal amount, expected rate of return, and inflation rate. The calculator will project how long your savings will last and show you year-by-year breakdowns of your retirement account balance.
The 4% rule is a guideline suggesting that retirees can withdraw 4% of their retirement portfolio in the first year, then adjust that amount for inflation each subsequent year, with a high probability that their savings will last for 30 years. Our calculator can help you test this rule with your specific situation.
While historical average stock market returns have been around 7-10% before inflation, it's generally recommended to use a more conservative estimate of 4-6% for retirement withdrawal planning, as your portfolio may become more conservative in retirement. Adjust based on your investment strategy and risk tolerance.
Yes, your calculations are automatically saved to your browser's local storage. They will remain available when you return to the calculator, even after closing your browser or restarting your device.
Inflation reduces the purchasing power of your money over time. Our calculator allows you to input an expected inflation rate to show how your withdrawals may need to increase over time to maintain the same standard of living, and how this affects the longevity of your savings.
Yes, we take data security seriously. Your financial information is stored locally in your browser and never sent to our servers. This ensures complete privacy and security of your personal financial information.