How Our Retirement Income Calculator Works

Planning for retirement involves more than just saving money—it’s about understanding how your savings will grow and what they’ll be worth when you need them most. Our Retirement Income Calculator helps you estimate the income you’ll have during retirement by taking into account multiple key factors.

1. Your Current Age and Retirement Age

The first step is determining how many years you have left until retirement. The calculator considers your current age and your planned retirement age to project how long your savings will grow before you begin drawing from them.

2. Current Savings and Monthly Contributions

Your existing retirement savings form the foundation of your future nest egg. The calculator then factors in your ongoing monthly contributions to show how consistent savings can compound over time and contribute to your retirement goals.

3. Investment Growth Adjusted for Inflation

One of the most important elements of the calculator is its ability to account for both investment growth and inflation. The expected annual rate of return is adjusted by the expected inflation rate, allowing you to see the real value of your savings in today’s dollars. This inflation adjustment ensures you’re planning with realistic numbers, so your savings will cover future living costs.

4. Your Desired Income and Other Retirement Income Sources

The calculator also considers your desired monthly income in retirement and any additional sources of income, such as Social Security or pensions. This gives you a clearer picture of whether your savings and investments will generate enough income to meet your lifestyle goals.

5. A Personalized Retirement Income Estimate

Based on the inputs you provide, the calculator projects your total retirement savings at the time you retire, your estimated annual income, and what that translates to on a monthly basis. It then compares this estimate to your desired income to show whether you’re on track or if you may need to adjust your savings strategy.

Why Inflation Matters in Retirement Planning

Inflation gradually reduces the purchasing power of your money over time. Without adjusting for inflation, you might think you’re on track, only to find that your savings don’t go as far as expected when you retire. By building inflation directly into the calculation, this tool helps you plan with numbers that reflect the real-world costs you’ll face in the future.