Retirement Income Calculator
Combine portfolio withdrawals, Social Security, and other income into a total retirement income estimate.
Your Details
Breakdown
Visual split of the key components
- Portfolio Withdrawal2333.3333333333335
- Social Security2200
- Other Income300
Sensitivity
How the result changes across a range
You might also find these useful
How It Works
- Enter the values on the left.
- Press Calculate to see your results and charts.
- Use Reset to start over from the defaults.
Formula Used
A 4% withdrawal rate is a commonly cited starting point, though the right rate depends on your situation.
Good to Know
- • Diversifying income sources reduces reliance on any single one.
- • A higher withdrawal rate increases current income but raises the risk of running out of savings.
Important Notes
- • Doesn't account for taxes on withdrawals or Social Security.
- • Assumes a constant withdrawal rate over time, not adjusted for market performance.
Why Multiple Income Sources Matter
Relying on a single income source in retirement — whether that's a portfolio withdrawal or Social Security alone — concentrates risk. Combining a portfolio withdrawal with Social Security and any other income (a pension, part-time work, rental income) spreads that risk and can allow for a lower, more sustainable withdrawal rate from the portfolio itself.
Choosing a Withdrawal Rate
The withdrawal rate you choose has a direct trade-off: a higher rate provides more income now but increases the risk of depleting the portfolio too early, especially if early retirement years see poor market returns. A lower rate is more conservative but requires either a larger portfolio or more income from other sources to hit the same target.
Terms Explained Simply
- Withdrawal rate — the percentage of a portfolio withdrawn annually to fund retirement spending.
- Income diversification — combining multiple sources (portfolio, Social Security, pensions) to reduce reliance on any single one.
A Concrete Example: Combining Three Income Sources
$700,000 portfolio at a 4% withdrawal rate, plus $2,200/month Social Security and $300/month other income:
Total monthly income = $2,333 + $2,200 + $300 = $4,833
Social Security alone covers nearly half of this retiree's income — a common pattern that highlights why the portfolio doesn't need to fund 100% of retirement spending on its own for most people.
Withdrawal Rate Impact Table
$700,000 portfolio:
| Withdrawal Rate | Monthly Income |
|---|---|
| 3% | $1,750 |
| 4% | $2,333 |
| 5% | $2,917 |
Common Missteps Planning Retirement Income
- Relying on the portfolio alone — combining sources reduces the required withdrawal rate.
- Using a static withdrawal rate regardless of market performance — some retirees adjust spending in down years.