Uses the same return, inflation, years, Social Security, and pension values above.
| From savings (inflation-adjusted withdrawal) | — |
| Social Security (monthly) | — |
| Pension (monthly) | — |
| Total Monthly Income (today's dollars) | — |
| Target monthly income | — |
| Covered by Social Security + Pension | — |
| Must come from savings (monthly) | — |
| Required Savings Balance | — |
| Your current savings | — |
| Savings Gap (or Surplus) | — |
The calculator uses a real return rate — nominal return minus inflation — to express everything in today's purchasing power. It computes the maximum sustainable monthly withdrawal from your savings over your chosen retirement period using the standard annuity formula, then adds Social Security and pension on top.
A 6% nominal return during a 3% inflation period gives you roughly a 2.9% real return. That's the growth rate that actually increases your purchasing power. By working in real terms, the monthly income figure is already inflation-adjusted — it represents what that money can buy in today's dollars.
Financial planners often cite the "4% rule": withdraw 4% of your savings per year and the money should last 30 years. With $500,000 that's $20,000/year or about $1,667/month. This calculator goes further by letting you adjust the return rate, inflation, and time horizon to match your actual situation.
Claiming Social Security at 62 vs. 70 can mean a 76% difference in your monthly benefit. This calculator accepts whatever benefit estimate you have — use ssa.gov's estimator for the most accurate figures based on your earnings record.
The required savings figure tells you exactly where you need to be. If you have a gap, you can close it by saving more, retiring later, targeting a lower monthly income, or finding ways to increase Social Security or pension income. Small changes compound dramatically over time.