Retirement Income Replacement Calculator

Calculator form

Current age

Retirement age

Life expectancy

Current annual income ($)

Income replacement ratio (%)

Inflation rate (%)

Pre-retirement return (%)

Post-retirement return (%)

Current retirement savings ($)

Annual contribution ($)

Contribution growth (%)

Social Security income today ($/year)

Pension income today ($/year)

Other retirement income today ($/year)

Other income growth after retirement (%)

Spending buffer (%)

Desired final legacy goal ($)

Formula used

This calculator combines income replacement, inflation adjustment, portfolio growth, and retirement withdrawals into one funding model.

Income target today: Current Income × Replacement Ratio
First retirement-year target: Income Target Today × (1 + Inflation)^{Years to Retirement}
Buffered target: First Retirement-Year Target × (1 + Spending Buffer)
Other income at retirement: Current Other Income × (1 + Inflation)^{Years to Retirement}
Net first-year withdrawal: Buffered Target − Other Income at Retirement
Projected retirement savings: Savings are compounded yearly with new annual contributions added
Required nest egg: A backward retirement cash-flow model discounts each annual withdrawal using the post-retirement return rate
Funding ratio: Projected Savings at Retirement ÷ Required Nest Egg

The retirement phase assumes spending grows with inflation, other retirement income grows with its selected COLA, and the ending balance can preserve the chosen legacy goal.

How to use this calculator

Enter your current age, target retirement age, and expected life expectancy.
Add your current annual income and choose the income replacement percentage you want in retirement.
Fill in inflation, expected investment returns, and current retirement savings.
Enter annual contributions and how much those contributions may rise each year.
Add expected retirement income sources such as Social Security, pensions, or other recurring income.
Use the spending buffer to add extra safety for healthcare, travel, or unknown future costs.
Set a final legacy goal if you want money remaining at life expectancy.
Press calculate to view results above the form, the funding gap, and the chart.
Download the result summary as CSV or PDF if you want to keep records.

Example data table

Scenario	Current Age	Retirement Age	Life Expectancy	Current Income	Replacement %	Current Savings	Annual Contribution	Other Retirement Income
Mid-career saver	40	65	90	$100,000	80%	$250,000	$15,000	$35,000
Early planner	30	62	92	$72,000	75%	$95,000	$10,500	$20,000
Late catch-up plan	52	67	90	$135,000	85%	$410,000	$24,000	$42,000

These rows are illustrative examples for testing the calculator and comparing planning assumptions.

Frequently asked questions

1) What does income replacement mean?

Income replacement estimates how much of your current income you want after retirement. Many people target 70% to 90%, but healthcare, debt, taxes, and lifestyle can push the ideal percentage higher or lower.

2) Why does inflation matter so much?

Retirement may begin decades from now. Inflation increases the future cost of living, so a target that feels comfortable today can be far too small later if you do not adjust it forward.

3) Why are pre-retirement and post-retirement returns separate?

Portfolios often become more conservative in retirement. A separate post-retirement return helps reflect lower growth assumptions once withdrawals begin and risk tolerance usually declines.

4) Should I include Social Security and pension income?

Yes. These sources can reduce how much your portfolio must provide. Enter them in today’s annual dollars, and the calculator projects them to retirement before comparing them with your spending target.

5) What is the spending buffer for?

The spending buffer adds a safety margin on top of your base retirement target. It can help account for healthcare shocks, travel goals, home repairs, or general uncertainty.

6) What does the legacy goal change?

A legacy goal means you want money left at the end of the plan. That raises the nest egg requirement because the portfolio must support withdrawals and still preserve the selected ending balance.

7) Why is there an estimated monthly income gap?

It shows an approximate first-year monthly shortfall if projected savings do not fully support the modeled withdrawal need. It is a planning indicator, not a guaranteed future outcome.

8) Can this replace professional financial advice?

No. This tool supports planning and comparison, but taxes, account types, healthcare, sequence risk, and personal goals may require guidance from a licensed financial professional.