Planning for retirement is a critical financial step, and understanding how much income you'll have is key to a comfortable future. Our Retirement Income Calculator helps you estimate your potential annual retirement income based on your current savings, contributions, investment returns, and other factors.
What is Retirement Income?
Retirement income refers to the money you'll have available to cover your living expenses once you stop working. This income typically comes from a combination of sources, including personal savings (like 401(k)s, IRAs, and other investment accounts), Social Security benefits, pensions, and potentially other assets. The goal of retirement planning is to ensure your retirement income is sufficient to maintain your desired lifestyle.
How to Use This Calculator
To get an estimate of your retirement income, simply enter the following details:
Current Age: Your age today.
Desired Retirement Age: The age at which you plan to stop working.
Expected Life Expectancy: How long you expect to live in retirement. This helps determine how long your savings need to last.
Current Retirement Savings: The total amount you currently have saved in all retirement accounts.
Annual Savings Contribution: The amount you plan to save annually until retirement.
Expected Annual Investment Return (pre-retirement): Your anticipated average annual return on investments before you retire (e.g., 7% for stocks, 4% for bonds).
Expected Annual Investment Return (post-retirement): Your anticipated average annual return on investments during retirement, when you'll be withdrawing funds. This is often more conservative than pre-retirement returns.
Expected Annual Inflation Rate: The average rate at which prices are expected to increase each year. This is crucial for understanding the purchasing power of your future income.
Current Annual Social Security/Pension Income: Any annual income you expect from Social Security or a pension, in today's dollars.
Desired Annual Retirement Income (in today's dollars): The amount of income you believe you'll need annually in retirement, expressed in today's purchasing power.
Understanding the Results
The calculator will provide you with several key figures:
Estimated Nest Egg at Retirement: The total value of your savings and contributions, grown by your investment returns, by the time you retire.
Estimated Annual Income from Nest Egg: The inflation-adjusted annual income your nest egg can realistically provide throughout your retirement years, considering your post-retirement investment returns.
Inflated Social Security/Pension Income: Your Social Security or pension income, adjusted for inflation to your retirement age.
Total Estimated Annual Retirement Income: The sum of your income from your nest egg and your inflated Social Security/pension. This is your projected annual income in retirement, expressed in future dollars but with the purchasing power of today's dollars (due to inflation adjustment).
Desired Annual Retirement Income (at retirement age): Your desired income, adjusted for inflation to your retirement age.
Income Gap/Surplus: The difference between your total estimated income and your desired income. A positive number indicates a surplus, while a negative number indicates a potential shortfall.
Current Annual Social Security/Pension Income: $20,000
Desired Annual Retirement Income (in today's dollars): $60,000
Based on these inputs, the calculator would estimate:
Estimated Nest Egg at Retirement: Approximately $1,894,755
Estimated Annual Income from Nest Egg: Approximately $96,839 (inflation-adjusted)
Inflated Social Security/Pension Income: Approximately $48,545
Total Estimated Annual Retirement Income: Approximately $145,384
Desired Annual Retirement Income (at retirement age): Approximately $145,636
Income Gap/Surplus: Approximately -$252 (a small shortfall)
This example shows that even with significant savings, inflation and desired lifestyle can create a gap. This calculator helps you identify such gaps early, allowing you to adjust your savings, retirement age, or spending expectations.
Disclaimer
This calculator provides estimates for illustrative purposes only. Actual investment returns, inflation rates, and life expectancy can vary significantly. It does not constitute financial advice. Please consult with a qualified financial advisor for personalized retirement planning.
Retirement Income Calculator
Estimated Retirement Income:
function calculateRetirementIncome() {
// Get input values
var currentAge = parseFloat(document.getElementById('currentAge').value);
var retirementAge = parseFloat(document.getElementById('retirementAge').value);
var lifeExpectancy = parseFloat(document.getElementById('lifeExpectancy').value);
var currentSavings = parseFloat(document.getElementById('currentSavings').value);
var annualContribution = parseFloat(document.getElementById('annualContribution').value);
var preRetirementReturn = parseFloat(document.getElementById('preRetirementReturn').value) / 100;
var postRetirementReturn = parseFloat(document.getElementById('postRetirementReturn').value) / 100;
var inflationRate = parseFloat(document.getElementById('inflationRate').value) / 100;
var currentSSPension = parseFloat(document.getElementById('currentSSPension').value);
var desiredAnnualIncome = parseFloat(document.getElementById('desiredAnnualIncome').value);
// Validate inputs
if (isNaN(currentAge) || isNaN(retirementAge) || isNaN(lifeExpectancy) || isNaN(currentSavings) ||
isNaN(annualContribution) || isNaN(preRetirementReturn) || isNaN(postRetirementReturn) ||
isNaN(inflationRate) || isNaN(currentSSPension) || isNaN(desiredAnnualIncome)) {
alert("Please enter valid numbers for all fields.");
return;
}
if (currentAge < 18 || retirementAge < 18 || lifeExpectancy = retirementAge) {
alert("Current Age must be less than Retirement Age for pre-retirement calculations.");
return;
}
if (retirementAge >= lifeExpectancy) {
alert("Life Expectancy must be greater than Retirement Age to calculate income during retirement.");
return;
}
// Calculate years
var yearsToRetirement = retirementAge – currentAge;
var yearsInRetirement = lifeExpectancy – retirementAge;
// 1. Future Value of Current Savings
var fvCurrentSavings = currentSavings * Math.pow((1 + preRetirementReturn), yearsToRetirement);
// 2. Future Value of Annual Contributions (Annuity Future Value)
var fvAnnualContributions;
if (preRetirementReturn === 0) {
fvAnnualContributions = annualContribution * yearsToRetirement;
} else {
fvAnnualContributions = annualContribution * ((Math.pow((1 + preRetirementReturn), yearsToRetirement) – 1) / preRetirementReturn);
}
// 3. Total Nest Egg at Retirement
var totalNestEgg = fvCurrentSavings + fvAnnualContributions;
// 4. Inflated Social Security/Pension Income
var inflatedSSPension = currentSSPension * Math.pow((1 + inflationRate), yearsToRetirement);
// 5. Desired Annual Retirement Income (Inflated to retirement age)
var desiredIncomeInflated = desiredAnnualIncome * Math.pow((1 + inflationRate), yearsToRetirement);
// 6. Estimated Annual Income from Nest Egg (inflation-adjusted throughout retirement)
var incomeFromNestEgg;
// Calculate real post-retirement return rate
var realPostRetirementRate = (1 + postRetirementReturn) / (1 + inflationRate) – 1;
if (yearsInRetirement <= 0) { // Should be caught by earlier validation, but good to be safe
incomeFromNestEgg = 0;
} else if (realPostRetirementRate === 0) {
// If real return is 0, simply divide nest egg by years in retirement
incomeFromNestEgg = totalNestEgg / yearsInRetirement;
} else {
// PMT = (PV * r_prime) / (1 – (1 + r_prime)^-n)
incomeFromNestEgg = (totalNestEgg * realPostRetirementRate) / (1 – Math.pow((1 + realPostRetirementRate), -yearsInRetirement));
}
// 7. Total Estimated Annual Retirement Income
var totalEstimatedIncome = incomeFromNestEgg + inflatedSSPension;
// 8. Income Gap/Surplus
var incomeGapSurplus = totalEstimatedIncome – desiredIncomeInflated;
// Display results
document.getElementById('resultNestEgg').innerHTML = "Estimated Nest Egg at Retirement: $" + totalNestEgg.toLocaleString(undefined, { minimumFractionDigits: 2, maximumFractionDigits: 2 });
document.getElementById('resultIncomeFromNestEgg').innerHTML = "Estimated Annual Income from Nest Egg: $" + incomeFromNestEgg.toLocaleString(undefined, { minimumFractionDigits: 2, maximumFractionDigits: 2 }) + " (inflation-adjusted)";
document.getElementById('resultInflatedSSPension').innerHTML = "Inflated Social Security/Pension Income: $" + inflatedSSPension.toLocaleString(undefined, { minimumFractionDigits: 2, maximumFractionDigits: 2 });
document.getElementById('resultTotalEstimatedIncome').innerHTML = "Total Estimated Annual Retirement Income: $" + totalEstimatedIncome.toLocaleString(undefined, { minimumFractionDigits: 2, maximumFractionDigits: 2 });
document.getElementById('resultDesiredIncomeInflated').innerHTML = "Desired Annual Retirement Income (at retirement age): $" + desiredIncomeInflated.toLocaleString(undefined, { minimumFractionDigits: 2, maximumFractionDigits: 2 });
var gapSurplusText = "Income Gap/Surplus: ";
if (incomeGapSurplus >= 0) {
document.getElementById('resultGapSurplus').style.color = 'green';
gapSurplusText += "$" + incomeGapSurplus.toLocaleString(undefined, { minimumFractionDigits: 2, maximumFractionDigits: 2 }) + " (Surplus)";
} else {
document.getElementById('resultGapSurplus').style.color = 'red';
gapSurplusText += "-$" + Math.abs(incomeGapSurplus).toLocaleString(undefined, { minimumFractionDigits: 2, maximumFractionDigits: 2 }) + " (Shortfall)";
}
document.getElementById('resultGapSurplus').innerHTML = gapSurplusText;
}