Income you receive
Social Security benefits, pension payments, annuity payments, and other recurring income can help cover regular expenses.
401k Calculator & Guide
Retirement income is the money you use to cover everyday living expenses after you stop working or reduce your working hours. A strong plan combines your savings, Social Security, pensions, and other resources into an approach designed to support your lifestyle over time.
Explore common retirement income sources, estimate your monthly income gap, and learn how withdrawals, taxes, inflation, and investment risk can affect your retirement plan.
Retirement income is the money available to support you during retirement. It may come from government benefits, workplace retirement plans, personal savings, investments, or continued part-time work.
Social Security benefits, pension payments, annuity payments, and other recurring income can help cover regular expenses.
Withdrawals from a 401(k), IRA, or investment account can supplement other income. The timing and tax treatment matter.
Combining different income sources can help you plan for recurring bills, unexpected costs, and changes over time.
Most retirement plans use a combination of resources. Each has different eligibility rules, tax treatment, and risks.
Eligible retirees can receive monthly benefits based on their earnings record and claiming age. Benefits may be adjusted for inflation, but claiming choices affect the monthly amount.
Your workplace plan can provide a pool of savings to draw from in retirement. Investment performance, fees, contributions, and withdrawal choices affect how long it may last.
A pension may provide a recurring benefit based on plan terms, salary history, and service. Review survivor benefits and whether payments have cost-of-living adjustments.
Traditional and Roth IRAs have different contribution, tax, and withdrawal rules. They can supplement workplace retirement savings.
Brokerage accounts may provide flexible access to investments. Dividends, interest, and realized capital gains can have tax consequences.
Part-time work, rental income, annuities, cash savings, and health savings account funds for eligible medical expenses may also play a role.
Estimate how much monthly income may be missing after accounting for your expected income sources. This simplified tool does not determine how much you can safely withdraw from your portfolio.
The modeled income covers the entered expense target.
The withdrawal estimate is calculated as portfolio balance × entered annual rate ÷ 12. It is not a recommended withdrawal rate or a guarantee that savings will last. Results exclude investment volatility, inflation, taxes, fees, changing expenses, and benefit adjustments. Social Security, pension, and other income are entered as monthly amounts before any personal tax adjustments.
The amount you withdraw depends on your portfolio, expected expenses, time horizon, investment mix, other income, and ability to adjust spending. A withdrawal strategy should consider both your immediate needs and the risk of outliving your assets.
Estimate essential and discretionary expenses, then subtract expected Social Security, pension, and other income. The remainder is the amount your savings may need to help fund.
Explore scenarios involving lower investment returns, higher inflation, unexpected expenses, and a longer retirement. A plan that works only under optimistic assumptions may be fragile.
Some retirees use a percentage-based approach, while others use a spending budget, a total-return strategy, or a combination. Each has trade-offs and no approach eliminates risk.
Separating essential costs from discretionary spending can help you identify expenses that might be adjusted after a market decline or a change in income.
Explore related planning tools: 401(k) retirement calculator, retirement savings guide, and how much you may need to retire.
Retirement income does not all receive the same tax treatment. The account or benefit type, your total income, state of residence, and individual circumstances can affect the amount you keep.
| Income source | General federal tax treatment | What to review |
|---|---|---|
| Traditional 401(k) | Distributions are generally taxable to the extent they represent untaxed contributions and earnings. | Distribution timing, withholding, required minimum distributions, and possible additional tax on early withdrawals. |
| Traditional IRA | Withdrawals are generally taxable to the extent funds have not already been taxed. | Deductible contributions, after-tax basis, and distribution rules. |
| Qualified Roth distributions | Qualified distributions are generally tax-free under applicable rules. | Account holding period, age and qualifying event requirements, and plan-specific rules. |
| Social Security | Benefits may be partly taxable depending on income and filing circumstances. | Other income, filing status, and current IRS rules. |
| Pension | Payments are generally taxable to the extent they represent untaxed funds. | After-tax contributions, benefit elections, and state treatment. |
| Taxable investments | Interest, dividends, and realized gains may be taxable under different rules. | Holding periods, cost basis, income, and applicable tax rates. |
Read our guides to 401(k) taxes, 401(k) withdrawal taxes, and required minimum distributions.
Official reference: IRS retirement plan guidance and Social Security benefit taxation information.
A practical plan connects your savings, expected benefits, spending needs, and risk tolerance into a strategy you can review and adjust.
Group costs into essential expenses, flexible spending, healthcare, housing, travel, and occasional large expenses. Consider how these may change after work.
Gather your workplace retirement balances, IRA statements, pension estimates, Social Security estimates, and other expected income. Check whether each amount is before or after tax.
Subtract expected recurring income from expected expenses. Use the difference as a starting point for considering portfolio withdrawals and other resources.
Consider how you will decide which accounts to draw from, how often to review withdrawals, and how you might adjust spending during poor market conditions.
Understand Social Security claiming choices, account distribution rules, potential taxes, and required minimum distributions when applicable. These decisions can interact.
Review your income and spending when circumstances change and periodically throughout retirement. Update assumptions instead of relying on one projection forever.
Investment losses can reduce your portfolio, especially if you need to sell assets to cover expenses during a downturn.
Rising prices reduce purchasing power. A fixed dollar amount may buy less over time, even if your income remains unchanged.
Premiums, deductibles, long-term care, and unexpected medical needs can make retirement expenses less predictable.
A long retirement can require savings to support you for decades. Planning for a longer lifespan may reduce the risk of running short.
Tax laws, benefit rules, and plan terms may change. Review current official guidance when making significant decisions.
Home repairs, family support, and other large costs can disrupt a budget. Include a contingency plan where feasible.
Answers to common questions about retirement income, withdrawals, and planning.
Your target depends on housing, healthcare, taxes, location, lifestyle, debt, and other expenses. Estimate your own retirement budget and subtract expected income sources to calculate the amount your savings may need to provide.
Common sources include Social Security, workplace 401(k) plans, IRAs, pensions, annuities, taxable investments, savings, rental income, and sometimes part-time work. Availability and tax treatment vary.
It depends on your balance, expenses, retirement duration, investment returns, and taxes. Many retirees combine retirement-account withdrawals with Social Security, pensions, or other income rather than relying on one source.
There is no withdrawal rate that guarantees success. A rate often discussed in retirement planning is 4%, but its historical assumptions may not fit every retirement period, portfolio, tax situation, or spending pattern. Evaluate multiple scenarios.
That depends on your benefit amount and expenses. Review your own estimate through the Social Security Administration and compare it with your expected spending and other available income.
Often, at least some retirement income is taxable, but treatment varies. Traditional retirement account distributions and pensions are generally taxable to the extent they contain untaxed funds. Qualified Roth distributions can be tax-free, and Social Security may be partly taxable.
Start well before retirement if possible. Early planning gives you time to adjust savings, investment choices, spending expectations, and the timing of potential benefits. Review the plan as your circumstances change.
Consider a realistic budget, diversified investments, awareness of fees and taxes, flexible discretionary spending, and regular reviews. No single strategy guarantees that assets will last for a particular number of years.
A decline can reduce the amount available to fund future spending. Your response depends on your plan, time horizon, other income, and risk tolerance. Avoid assuming that markets will recover on a particular schedule.
Verify benefit estimates, tax treatment, and retirement account rules using official sources.
Estimate your income gap, review your retirement savings, and explore the tools and resources that can help you make informed decisions.
Explore Retirement PlanningThis page provides general educational information and is not individualized financial, investment, legal, or tax advice. Calculator results are hypothetical estimates, not guarantees or recommendations. Investment values can rise or fall, and retirement income needs depend on individual circumstances. Tax rules, benefits, and plan provisions may change. Verify current information with official sources and consider consulting qualified professionals for advice specific to your situation.
Clear guides, useful calculators and practical retirement resources to help you understand your 401(k), contributions, employer matching, Roth options, rollovers and long-term savings.
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