Most retirement planning tools focus on the accumulation phase — how much you need to save by age 65. Far fewer answer the question you actually ask on the day you hand in your badge: how much cash will I have each month? This retirement income calculator adds up the streams that fund your retirement — Social Security, pension, 401(k) / IRA withdrawals, and any other income — subtracts an estimated tax bite, and compares the result to the monthly lifestyle you want.
The default values are deliberately concrete: a $2,200 Social Security benefit, a $1,500 pension, and a $3,000 monthly withdrawal from a 401(k) produce $6,700 in gross monthly income, or $80,400 a year. After a 12% blended tax rate, your net monthly income is about $5,896. If your desired spending is $6,000 a month, you are running a small $104 monthly shortfall — exactly the kind of gap this tool is built to surface before it becomes a problem in year three of retirement.
How to Use
- Enter your Social Security benefit. Check your latest my Social Security statement at ssa.gov for the estimated amount at your full retirement age (66–67, depending on birth year). Claiming at 62 reduces it by roughly 30%; waiting until 70 adds about 8% per year past full retirement age.
- Add your Pension payment. If you have a defined-benefit plan, this is the monthly annuity your former employer pays for life. If you have a cash-balance plan converted to a monthly check, enter that figure instead. Leave it at zero if you do not have a pension.
- Type your planned 401(k) / IRA Withdrawal. A common starting point is the 4% rule: withdraw 4% of your nest egg in year one, then adjust for inflation. On a $900,000 balance, that is $36,000 a year, or $3,000 a month.
- Fill in Other Retirement Income if you have rental property, a commercial annuity, dividends, interest, or part-time work. These streams often cover healthcare premiums and travel in early retirement.
- Set your Estimated Tax Rate. Most retirees fall in the 12%–22% federal bracket, but Social Security is only partially taxed (up to 85% of the benefit is taxable once provisional income crosses $44,000 for a couple), and Roth withdrawals are tax-free. Run scenarios at 12%, 18%, and 22% to see the range.
- Enter your Desired Monthly Expenses. Be realistic — include property taxes, insurance, healthcare (Medicare Part B, Medigap, dental), food, utilities, and a travel line. The standard advice to spend 70–80% of your pre-retirement income is a starting guess, not a budget.
The result card shows gross monthly and annual income, the estimated tax bite, net monthly and annual income after tax, and the surplus or shortfall against your desired expenses. A positive surplus means you can save more, travel more, or leave a legacy; a negative number tells you exactly how much you need to cut, work part-time for, or delay retirement to fix.
The Math Behind the Number
The model is deliberately transparent because retirement income is a cash-flow problem, not a complex Monte Carlo simulation:
Gross Monthly Income = Social Security + Pension + 401(k) Withdrawal + Other Income
Net Monthly Income = Gross Monthly Income × (1 − Tax Rate)
Monthly Gap = Net Monthly Income − Desired Expenses
On the defaults, gross income is $2,200 + $1,500 + $3,000 + $0 = $6,700 per month, or $80,400 per year. Applying a 12% blended tax rate takes out about $804 a month, leaving $5,896 net ($70,752 a year). Against $6,000 of desired spending, the gap is −$104 per month, or −$1,248 a year. That sounds small, but over a 30-year retirement it is roughly $37,000 of extra spending power you need to find — either by working two more years, delaying Social Security to 70, or trimming $100 a month from expenses.
How Each Income Stream Is Taxed
Not all retirement income is equal to the IRS. The tax rate you enter should reflect this mix:
- Social Security — taxable only above a "provisional income" threshold. Up to 85% of the benefit is taxable for single filers with combined income over $34,000 (or $44,000 married filing jointly).
- Pension — fully taxable at federal rates (and usually state) because contributions were pre-tax. Roth-converted pensions or after-tax contributions are partially exempt.
- Traditional 401(k) / IRA withdrawals — fully taxed as ordinary income. Required Minimum Distributions (RMDs) begin at age 73 and are factored into this number automatically once you reach that age.
- Roth 401(k) / Roth IRA withdrawals — tax-free in retirement, because you already paid tax on the contributions.
- Rental income, dividends, interest — taxed at your ordinary rate (qualified dividends and long-term capital gains get preferential rates of 0%, 15%, or 20%).
Because the calculator uses a single blended rate, it is a planning estimate, not a tax return. For a precise projection, feed these streams into free tax software (the IRS Tax Withholding Estimator, TurboTax, or H&R Block) for the year you turn 65.
Examples
Example 1 — The default mid-career couple. Social Security $2,200, pension $1,500, 401(k) withdrawal $3,000, no other income, 12% tax rate, $6,000 desired spending. Gross income is $6,700/month; net income is $5,896/month. The result shows a small $104 monthly shortfall. The fix is simple: delay Social Security to age 70 (the benefit rises to roughly $2,900), or reduce the 401(k) withdrawal pressure by working part-time at $300/month. Either closes the gap.
Example 2 — The high-saving single retiree. Social Security $3,000, no pension, 401(k) withdrawal $6,000, other income $1,000 (rental), 18% tax rate, $7,500 desired spending. Gross income is $10,000/month; estimated tax is $1,800; net income is $8,200/month. The result shows a $700 monthly surplus ($8,400/year), which can be redirected to a Roth conversion ladder, a charity fund, or a travel budget.
Example 3 — The large nest-egg scenario. A retiree with $4,000,000 in a traditional IRA withdraws $1,000,000 in a single year (an extreme, non-recurring case to test the engine). Gross monthly income is roughly $1,003,700; at a 12% rate net income is $883,256/month. In practice this would push the retiree into the 32% federal bracket, which is exactly why the tool lets you raise the tax rate slider to see how marginal rates change the picture.
FAQ
How much monthly retirement income will I need?
A common rule of thumb is 70–80% of your pre-retirement gross income, but that is only a starting point. If your mortgage is paid off and you are in good health, you may need less; if you plan to travel extensively, help grandchildren with college, or fund long-term care, you may need more. Enter your real expected expenses in the "Desired Monthly Expenses" field rather than relying on a percentage.
Is Social Security enough to live on?
The average 2026 Social Security benefit is around $2,200 per month, which is below the federal poverty line for a household of two. Social Security was designed to replace about 40% of pre-retirement income; the rest must come from pensions, 401(k)s, IRA withdrawals, personal savings, or part-time work. Use this calculator to add those streams on top of your benefit.
How much can I withdraw from my 401(k) each month?
The 4% rule suggests withdrawing 4% of your balance in the first year, then adjusting for inflation thereafter. On a $900,000 401(k), that is $36,000 a year, or $3,000 a month. Recent research suggests the safe withdrawal rate is closer to 3.3–3.5% for a 30-year retirement, especially if market returns are low early in retirement (the sequence-of-returns risk).
Are pensions taxed in retirement?
Yes. Most traditional pensions are funded with pre-tax dollars, so every monthly check is fully taxable as ordinary income at the federal level and usually at the state level. If you made after-tax contributions, the prorated portion of each check is tax-free. Roth-converted pension balances are not taxed on distribution.
What is a good retirement income for a couple?
A comfortable retirement for a typical American couple in 2026 often lands between $6,000 and $9,000 in net monthly income, depending on location, health, and lifestyle. Retirees in high-cost areas (California, New York City, Hawaii) may need $10,000+; couples in low-cost states with paid-off homes may live well on $4,500. Enter your own numbers — this calculator is built for your situation, not an average.
Does this calculator account for inflation?
This version shows today's dollars. Inflation averages about 2–3% per year, so $6,000 of spending today will feel like $7,500–$8,000 in ten years. For a full inflation-adjusted projection, pair this tool with a retirement-withdrawal calculator that compounds balances and adjusts expenses over time.
Disclaimer
This retirement income calculator is provided for informational purposes only and does not constitute financial, tax, legal, or investment advice. Estimates are based on the inputs you enter and a simple sum-of-income-streams model with a flat blended tax rate; actual tax liability depends on your filing status, deductions, state of residence, Social Security taxation thresholds, Roth versus traditional account mix, and RMD rules. Social Security benefit figures come from the Social Security Administration and change annually with cost-of-living adjustments. Always confirm your projected income and tax situation with a Certified Financial Planner (CFP), a tax professional, or the Social Security Administration before making retirement decisions.