Retirement Income Calculator
Calculate your total monthly retirement income from all sources: Social Security, pension, 401K/IRA withdrawals, and other income.
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This calculator is for informational and educational purposes only. Results are estimates based on the information you provide and standard financial formulas. This is not financial advice. Consult a qualified financial advisor for decisions specific to your situation. Full Disclaimer
Advanced Income Analysis 2026 DATA
⌄Personalized income stack appears after you Calculate
Your Income Stack — Where Each Dollar Comes From
Most retirees underestimate how much retirement income comes from sources other than their portfolio. Per Social Security Administration data, Social Security provides about 30% of total income for retirees overall but more than 50% for the bottom three quintiles. The "income stack" is the most realistic way to think about retirement.
National income source distribution by retiree quintile (SSA 2024)
| Income Quintile | SS Share | Pension Share | Asset Income Share | Earnings Share |
|---|---|---|---|---|
| Bottom 20% | 83% | 3% | 1% | 10% |
| 2nd quintile | 71% | 10% | 3% | 13% |
| 3rd quintile | 57% | 17% | 5% | 17% |
| 4th quintile | 40% | 21% | 10% | 23% |
| Top 20% | 17% | 15% | 33% | 33% |
Source: SSA Income of the Aged Population. The takeaway: Social Security is the foundation of retirement income for the bottom 80% of Americans. Only the top 20% derives most income from portfolio assets.
When To Claim Social Security — Real 2026 Numbers
Claiming early at 62 vs delayed to 70 produces a 74% difference in monthly benefit, and the 8%/year delayed retirement credits between FRA and 70 are the highest-return guaranteed investment most retirees can access. Numbers below use SSA-verified 2026 maximums for someone who earned the taxable maximum throughout their career.
| Claim Age | 2026 Max Monthly | vs FRA | Lifetime @ Avg Longevity | Break-Even vs Earlier Claim |
|---|---|---|---|---|
| 62 (earliest) | $2,969 | −28.5% | $748,188 (to 83) | — |
| 63 | $3,166 | −23.7% | $759,840 | ~age 79 vs 62 |
| 64 | $3,394 | −18.3% | $774,632 | ~age 80 vs 62 |
| 65 | $3,609 | −13.1% | $779,544 | ~age 81 vs 62 |
| 66 | $3,879 | −6.6% | $791,316 | ~age 82 vs 62 |
| 67 (FRA) | $4,152 | 0% | $797,184 | ~age 80 vs 62 |
| 68 | $4,484 | +8% | $806,920 | ~age 79 vs 67 |
| 69 | $4,816 | +16% | $809,088 | ~age 80 vs 67 |
| 70 (max) | $5,181 | +24.8% | $808,236 | ~age 80-82 vs 67 |
Claim at 62 −28.5%
Total reduction vs FRA: 28.5%. Best for: poor health, urgent income need, or a working spouse with substantially higher SS.
Earnings test trap: If still working in 2026, $1 of benefits withheld for every $2 earned over $24,480.
Claim at FRA (67) 100%
Full benefit. No earnings test. Best for: average-health retirees who don't need the income to live but want to start drawing.
Spousal claim: Spouse can claim 50% of your FRA benefit if they have lower earnings — independent of when you claim.
Delay to 70 +24.8%
Highest possible benefit. Each year past FRA earns 8% delayed retirement credit — guaranteed, inflation-adjusted, lifetime.
Best for: Above-avg longevity, married couples (survivor benefit = larger spouse's benefit), or anyone who can fund 67-70 from other sources.
Source: SSA — Maximum Retirement Benefit 2026. Percentages from SSA's PIA reduction/credit table. Lifetime totals assume average remaining longevity at each claim age (SSA 2022 Period Life Table).
RMD Income Trajectory — How Forced Withdrawals Grow With Age
At age 73 (per SECURE 2.0), the IRS forces minimum withdrawals from Traditional IRAs and 401(k)s. The RMD divisor decreases each year, meaning the percentage you must withdraw rises — from 3.77% at 73 to 11.24% at 90. This forces income up regardless of whether you need it, with major tax and IRMAA implications.
| Age | RMD Divisor (Uniform Lifetime) | RMD % of Balance | Annual RMD on $500K | Annual RMD on $1M |
|---|---|---|---|---|
| 73 (first RMD) | 26.5 | 3.77% | $18,868 | $37,736 |
| 75 | 24.6 | 4.07% | $20,325 | $40,650 |
| 78 | 22.0 | 4.55% | $22,727 | $45,455 |
| 80 | 20.2 | 4.95% | $24,752 | $49,505 |
| 83 | 17.7 | 5.65% | $28,249 | $56,497 |
| 85 | 16.0 | 6.25% | $31,250 | $62,500 |
| 88 | 13.7 | 7.30% | $36,496 | $72,993 |
| 90 | 12.2 | 8.20% | $40,984 | $81,967 |
| 93 | 10.1 | 9.90% | $49,505 | $99,010 |
| 95 | 8.9 | 11.24% | $56,180 | $112,360 |
Three RMD planning strategies
- Roth conversions before 73 — Convert Traditional → Roth in the gap years 60-72 (low-income, post-work, pre-RMD). Roth has no RMDs during owner's lifetime. Each $100K converted now saves $5K-$15K in lifetime taxes typically.
- Qualified Charitable Distributions (QCDs) — Give RMD directly to qualified charity (up to $111,000/yr in 2026). Counts as RMD but excluded from MAGI — avoids IRMAA tier increases.
- QLAC (Qualified Longevity Annuity Contract) — Defer up to $210,000 (2026 limit) of IRA into a longevity annuity starting at 85. Excluded from RMD calculation. Hedge longevity risk and reduce mid-retirement RMDs.
Source: IRS Uniform Lifetime Table (2022 update). RMD age 73 per SECURE 2.0 Act of 2022; rises to 75 in 2033. QCD limit per IRS QCD rules.
IRMAA — The Income Cliffs Most Retirees Don't See Coming
If your Modified Adjusted Gross Income (MAGI) crosses certain thresholds, your Medicare Part B and Part D premiums jump dramatically — known as IRMAA (Income-Related Monthly Adjustment Amount). The cliffs are real: $1 over a threshold can cost $1,000+ per year per person. About 7-8% of Medicare beneficiaries pay IRMAA.
| Single MAGI (2024 income) | MFJ MAGI | 2026 Total Part B | Annual Surcharge per Person |
|---|---|---|---|
| ≤ $109,000 | ≤ $218,000 | $202.90 | $0 (standard) |
| $109,001 – $137,000 | $218,001 – $274,000 | $284.10 | +$974/yr |
| $137,001 – $171,000 | $274,001 – $342,000 | $405.40 | +$2,430/yr |
| $171,001 – $205,000 | $342,001 – $410,000 | $526.70 | +$3,886/yr |
| $205,001 – $500,000 | $410,001 – $750,000 | $648.10 | +$5,342/yr |
| > $500,000 | > $750,000 | $689.90 | +$5,844/yr |
Critical IRMAA mechanics most retirees miss
- Two-year lookback: Your 2024 MAGI determines your 2026 Medicare premiums. A Roth conversion in 2024 hurts you in 2026.
- Cliff effect: $1 over the threshold triggers the FULL surcharge. Earn $109,001 single? Pay $974/yr extra Medicare. Stop at $108,999.
- Per person: Married couples pay surcharges twice — once each. A couple just over the $218K threshold pays $1,948/yr extra total.
- Widow/widower trap: When one spouse dies, surviving spouse files single. Same income now hits single-filer thresholds, often jumping 1-2 IRMAA tiers. Combined with loss of one SS check, can be a 30%+ income shock.
- Appeal via SSA-44: "Life-changing event" appeals for retirement, divorce, work stoppage, or loss of income-producing property can override the 2-year lookback.
Source: CMS 2026 Medicare Parts A & B Premiums (final, Nov 2025). Surcharge calculations per Medicare.gov. Top tier ($500K/$750K) is currently frozen, indexed for inflation beginning 2028.
How Much Income Do You Actually Need? — Replacement Ratio Research
The "replacement ratio" is the percentage of pre-retirement income needed to maintain your standard of living in retirement. The classic 80% rule oversimplifies — Aon/Georgia State research shows the ratio varies dramatically by income level. Lower earners need more than 80%; higher earners need substantially less.
| Pre-Retirement Income | Recommended Replacement Ratio | Annual Income Target | Why the Variation |
|---|---|---|---|
| $30,000 | 94% | $28,200 | Less savings cushion, fewer work-related expenses to drop |
| $50,000 | 87% | $43,500 | Some workplace expenses drop (commute, work clothes) |
| $75,000 | 80% | $60,000 | The "classic" 80% rule applies here |
| $100,000 | 78% | $78,000 | Higher savings rate during work years means lower spending baseline |
| $150,000 | 74% | $111,000 | Substantial work-year savings (15-20%) reduce retirement income need |
| $200,000 | 71% | $142,000 | Higher Social Security absorbed by lower replacement need |
| $300,000+ | 65% | $195,000+ | Much higher savings rate; SS smaller share of total |
What goes UP in retirement
- Healthcare: Pre-Medicare bridge ages 60-65 can cost $15K-$25K/yr per person. Even after Medicare, total healthcare runs $7K-$12K/yr including supplements and out-of-pocket.
- Travel and leisure: Most retirees spend more on travel/leisure in years 65-75 than during working years. "Go-go" years.
- Long-term care risk: 70% of those turning 65 will need some LTC. Average cost $235K lifetime per person (Genworth 2024).
- Inflation drag: 30-year retirement at 3% inflation = 142% increase in living costs. SS COLA helps but doesn't fully offset for some retirees.
Replacement ratio data: Aon/Georgia State 2024 Replacement Ratio Study (latest annual). Healthcare costs: Fidelity Retiree Health Care Cost Estimate 2024: $165K per person at 65 for healthcare expenses through life expectancy.
Continue your retirement decision
Things to Know
Essential concepts for understanding your results
Income SourcesWhat are the main sources of retirement income?
Social Security (avg $22,800/year, replaces 30-40% of pre-retirement income). Employer pensions (increasingly rare, typically 30-60% of final salary). 401(k)/IRA withdrawals (4% rule: $40,000/year per $1M saved). Part-time work ($10,000-30,000/year). Rental income, annuities, taxable investments. Most retirees combine 2-3 sources. The gap between Social Security and total expenses must be filled by personal savings.
Withdrawal OrderWhich accounts should you draw from first?
Optimal sequence: 1) Taxable accounts (capital gains rates lower than income rates). 2) Traditional 401(k)/IRA (fill lower tax brackets, reduce future RMDs). 3) Roth accounts (preserve tax-free growth as long as possible). Exception: in low-income years (60-72, before RMDs), convert traditional to Roth at low tax rates. This Roth conversion strategy can save $50,000-200,000 in lifetime taxes.
Income GapHow do you calculate your retirement income gap?
Gap = Desired annual spending − Guaranteed income sources. If you want $65,000/year and Social Security provides $24,000: gap = $41,000. At 4% withdrawal rate, you need $41,000 ÷ 0.04 = $1,025,000 in savings. At 3.5% (more conservative): $1,171,000. This calculation is the foundation of all retirement planning — know your gap number and track your savings progress against it.
Required DistributionsWhat are RMDs and when do they start?
Required Minimum Distributions (RMDs) force withdrawals from traditional 401(k)s and IRAs starting at age 73 (SECURE 2.0). The amount is calculated by dividing your account balance by the IRS life expectancy factor. At age 73 with $1M: approximately $37,700 must be withdrawn and taxed as income. RMDs increase each year as the factor decreases. Roth IRAs have no RMDs — another reason to do Roth conversions before 73.
How Much Income Will Your Retirement Savings Provide?
The central question of retirement planning: how much can you safely withdraw from your savings each year without running out of money? The answer depends on your portfolio size, withdrawal strategy, investment mix, and how long you need the money to last.
The 4% rule remains the most widely used starting point: withdraw 4% of your portfolio in year 1, then adjust for inflation each year. A $1,000,000 portfolio produces $40,000/year ($3,333/month). At $2 million: $80,000/year. At $500,000: $20,000/year. The rule was designed to sustain a 30-year retirement with high probability (historically 95%+ success rate).
Your total retirement income typically comes from three sources: Social Security (average $22,000-$45,000/year), portfolio withdrawals (4% rule), and any pension or annuity income. Example: Social Security of $28,000 + 4% withdrawal from $800,000 ($32,000) + small pension of $6,000 = $66,000/year total retirement income.
The 4% Rule: When It Works and When to Adjust
The 4% rule assumes a 60/40 stock/bond portfolio, 30-year time horizon, and average historical returns. When conditions differ, the safe withdrawal rate changes:
Longer retirement (35-40 years, early retirees): Reduce to 3.25-3.5%. A 55-year-old retiring with a 40-year horizon needs a lower withdrawal rate to survive the extra decade. On $1 million: $32,500-$35,000/year instead of $40,000.
Higher equity allocation (80-100% stocks): Historically supported 4.0-4.5% withdrawals over 30 years due to higher long-term returns — but with more volatile year-to-year income and larger drawdowns during crashes.
Conservative allocation (40-60% bonds): In low-yield environments, may require 3.0-3.5% to be safe. Bonds provide stability but limit growth that offsets inflation over decades.
Flexible spending: If you can reduce withdrawals by 10-25% during bear markets (skip the vacation, delay the car replacement), your safe withdrawal rate increases to 4.5-5.0%. This "guardrails" approach — adjusting spending based on portfolio performance — is the most realistic and effective strategy for most retirees.
Tax-Efficient Withdrawal Order
The order you withdraw from different account types dramatically affects your tax bill and how long your money lasts:
The conventional wisdom: Withdraw from taxable accounts first (capital gains rate), then tax-deferred accounts (Traditional IRA/401k at ordinary income rate), then tax-free accounts (Roth) last. This lets the Roth grow tax-free for the longest time.
The smarter approach — bracket filling: Each year, withdraw from Traditional accounts to "fill up" the lower tax brackets (10% and 12%), then supplement with Roth withdrawals and/or taxable account sales. This produces a lower lifetime tax bill than the conventional approach because you are deliberately realizing Traditional IRA income at low rates rather than letting it accumulate until RMDs force it out at higher rates.
Before RMDs (age 73): Strategically withdraw from Traditional accounts to fill the 12% or 22% bracket. Consider Roth conversions during low-income years. This reduces the Traditional balance, lowering future RMDs and potentially keeping you in a lower bracket for life.
Tax-free income sources: Roth IRA withdrawals, Roth 401(k) withdrawals, HSA withdrawals for medical expenses, municipal bond interest, and up to 85% of Social Security may be non-taxable depending on other income. Arranging your income to maximize tax-free sources while minimizing taxable income is the core of retirement tax planning.
Making Your Money Last: Longevity Planning
The biggest risk in retirement is not market crashes — it is living longer than your money lasts. A 65-year-old couple has a 50% chance that at least one spouse lives past 90 — that is a 25+ year retirement. Planning for "average" life expectancy leaves you with a 50% chance of running out.
Strategies to extend portfolio life: Delay Social Security to 70 (increases benefit by 77% compared to age 62). Maintain 50-60% equity allocation for growth. Use a flexible withdrawal strategy (reduce spending in down markets). Consider a partial annuity for guaranteed income covering essential expenses. Keep 1-2 years of expenses in cash/short-term bonds as a buffer during market downturns.
Healthcare costs: The average retired couple needs approximately $315,000 for healthcare in retirement (Fidelity estimate). This includes Medicare premiums, supplemental insurance, copays, dental, vision, and potential long-term care. Budget $800-$1,200/month for healthcare costs — more than many retirees expect.
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