How the Retirement Income Calculator works
Estimate monthly retirement income from savings. Adjust the inputs above, then use the calculate button to generate a fresh estimate based on the numbers you entered.
The result is designed to give you a quick planning number, plus a short breakdown of the major figures behind it. You can reset the form at any time and try a different scenario.
When to use this calculator
Use this retirement income calculator to estimate how much monthly income your savings and pension-style benefits may support. It is useful for turning a nest egg into a rough retirement cash-flow estimate.
Formula
Monthly income = retirement savings x withdrawal rate / 12 + monthly pension or benefits
- Retirement savings is the amount available to draw from.
- Withdrawal rate estimates the annual portion of savings used for income.
- Monthly pension or benefits are added as separate recurring income.
Worked example
For $750,000 in retirement savings, a 4% withdrawal rate and $1,800 in monthly pension or benefits, the calculator estimates about $4,300 in monthly retirement income.
Common mistakes
- Treating a withdrawal rate as guaranteed for every market condition.
- Ignoring taxes, inflation and required minimum withdrawals.
- Forgetting that spending may change throughout retirement.
FAQs
Is 4% always safe?
No. A 4% withdrawal rate is a planning shortcut, not a guarantee. Market returns, inflation and lifespan matter.
Should CPP or OAS be included?
You can include expected monthly government benefits in the pension or benefits field.
Does this account for taxes?
No. It estimates gross income before tax.