Free Retirement Income Analysis

What Is a Retirement Income Analysis?

A retirement income analysis is a comprehensive financial planning exercise that evaluates whether your combined income sources — portfolio withdrawals, Social Security benefits, pensions, and other income — will sustain your desired lifestyle throughout retirement. Unlike a simple savings calculator, this tool models the complex interplay between investment returns, inflation, withdrawal strategies, and multiple income streams to project your financial security decade by decade.

The core question every retiree faces is: "Will my money last?" Our free retirement income analysis tool answers this by simulating year-by-year cash flows from retirement through your life expectancy. It accounts for the erosion of purchasing power through inflation, the timing of Social Security benefits, and the impact of different withdrawal strategies on portfolio longevity.

How to Use This Retirement Income Analysis Tool

1. 1

   Enter Your Age and Timeline

   Input your current age, planned retirement age, and life expectancy. Be conservative with life expectancy — planning to age 90 or 95 helps ensure you don't outlive your savings.

2. 2

   Set Portfolio and Return Assumptions

   Enter your current portfolio balance, expected annual return rate, and anticipated inflation rate. A balanced portfolio historically returns 6-8% annually, while inflation averages around 3%.

3. 3

   Choose a Withdrawal Strategy

   Select from three strategies: Fixed (inflation-adjusted) withdrawals for predictable income, Percentage-based withdrawals that adjust with your portfolio value, or the Guardrails strategy that dynamically adjusts spending based on portfolio performance.

4. 4

   Add Other Income Sources

   Include Social Security benefits (with your planned start age), pension income, rental income, or any other recurring income. These reduce the amount you need to withdraw from your portfolio.

5. 5

   Review Your Projections

   Click "Analyze Retirement Income" to see summary metrics, interactive charts showing portfolio balance over time, income breakdown by source, and a detailed year-by-year projection table.

Understanding Withdrawal Strategies

The 4% Rule and Safe Withdrawal Rates

The 4% rule, developed by financial planner William Bengen in 1994, suggests that retirees can withdraw 4% of their portfolio in the first year of retirement and adjust that amount for inflation each subsequent year, with a high probability of the portfolio lasting at least 30 years. This rule was based on historical U.S. stock and bond market returns and remains one of the most widely referenced retirement planning guidelines.

However, the 4% rule has limitations. It assumes a specific asset allocation (roughly 50/50 stocks and bonds), doesn't account for taxes or fees, and was calibrated to historical U.S. market data. Many financial planners now recommend a more flexible approach — starting with a 3.5% to 4.5% withdrawal rate and adjusting based on market conditions, which is exactly what the guardrails strategy in this tool models.

Social Security Timing and Retirement Income

When you start claiming Social Security benefits significantly impacts your total retirement income. You can claim as early as age 62 at a reduced benefit, at your full retirement age (66-67 for most people) for the standard benefit, or delay until age 70 for an increased benefit of approximately 8% per year of delay. For each year you delay past your full retirement age, your benefit grows by about 8% — a guaranteed return that's hard to match elsewhere.

This tool lets you model different Social Security start ages to see how the timing affects your overall retirement income picture. Delaying Social Security often means withdrawing more from your portfolio in early retirement years but receiving higher guaranteed income later — providing valuable longevity insurance.

Why Use Our Retirement Income Analysis Tool?