Use these tables to estimate your total retirement income from all sources and see if you’re on track.
Retirement Income from Savings (4% Rule)
Annual Income Your Savings Can Provide
| Retirement Savings | 3% Withdrawal (Conservative) | 4% Withdrawal (Standard) | 5% Withdrawal (Aggressive) |
|---|---|---|---|
| $100,000 | $3,000/year ($250/mo) | $4,000/year ($333/mo) | $5,000/year ($417/mo) |
| $250,000 | $7,500/year ($625/mo) | $10,000/year ($833/mo) | $12,500/year ($1,042/mo) |
| $500,000 | $15,000/year ($1,250/mo) | $20,000/year ($1,667/mo) | $25,000/year ($2,083/mo) |
| $750,000 | $22,500/year ($1,875/mo) | $30,000/year ($2,500/mo) | $37,500/year ($3,125/mo) |
| $1,000,000 | $30,000/year ($2,500/mo) | $40,000/year ($3,333/mo) | $50,000/year ($4,167/mo) |
| $1,500,000 | $45,000/year ($3,750/mo) | $60,000/year ($5,000/mo) | $75,000/year ($6,250/mo) |
| $2,000,000 | $60,000/year ($5,000/mo) | $80,000/year ($6,667/mo) | $100,000/year ($8,333/mo) |
| $3,000,000 | $90,000/year ($7,500/mo) | $120,000/year ($10,000/mo) | $150,000/year ($12,500/mo) |
The 4% figure is a long-standing planning benchmark from the Trinity Study/Bengen research, assuming roughly a 30-year retirement with a diversified portfolio. Current research narrows the debate — Morningstar’s 2026 forward-looking estimate is closer to 3.9%, while Bengen’s own 2025 update argues 4.7%+ may be defensible with a more diversified portfolio. Adjust down for earlier retirement or a conservative temperament, and treat any single percentage as an estimate, not a guarantee.
Social Security Estimates (illustrative — labeled figures from 2025; confirm current amounts at ssa.gov)
Average Monthly Benefits by Claiming Age
The table below illustrates the standard SSA claiming-age percentages (for someone with a Full Retirement Age of 67) applied to a 2025-vintage average benefit figure. Actual current-year average and maximum benefits increase each year with wage growth and COLA — confirm the latest figures at ssa.gov before using them for precise planning.
| Claiming Age | Illustrative Average Benefit (2025 basis) | % of Full Benefit |
|---|---|---|
| Age 62 (earliest) | $1,336 | 70% |
| Age 63 | $1,431 | 75% |
| Age 64 | $1,526 | 80% |
| Age 65 | $1,669 | 86.7% |
| Age 66 | $1,812 | 93.3% |
| Age 67 (full retirement age) | $1,907 | 100% |
| Age 68 | $2,060 | 108% |
| Age 69 | $2,212 | 116% |
| Age 70 (max delay) | $2,365 | 124% |
Delaying from 62 to 70 increases benefits by roughly 77% on this illustrative basis (the exact percentage depends on your own Full Retirement Age).
Total Retirement Income by Scenario
These scenarios use the illustrative 2025-basis Social Security figures above; substitute your own current benefit estimate from ssa.gov for precise planning.
Scenario 1: Moderate Saver (Single)
| Income Source | Monthly | Annual |
|---|---|---|
| Social Security (age 67, illustrative) | $1,907 | $22,884 |
| 401(k) at $400,000 (4% rule) | $1,333 | $16,000 |
| IRA at $150,000 (4% rule) | $500 | $6,000 |
| Total retirement income | $3,740 | $44,884 |
| Pre-retirement income | $75,000 | |
| Replacement rate | 59.8% |
Scenario 2: Strong Saver (Single)
| Income Source | Monthly | Annual |
|---|---|---|
| Social Security (age 70, illustrative) | $2,365 | $28,380 |
| 401(k) at $800,000 (4% rule) | $2,667 | $32,000 |
| IRA/Roth IRA at $350,000 (4% rule) | $1,167 | $14,000 |
| Taxable investments at $200,000 | $667 | $8,000 |
| Total retirement income | $6,866 | $82,380 |
| Pre-retirement income | $120,000 | |
| Replacement rate | 68.7% |
Scenario 3: Married Couple (Dual Earners)
| Income Source | Monthly | Annual |
|---|---|---|
| Social Security (Spouse 1, age 67, illustrative) | $2,200 | $26,400 |
| Social Security (Spouse 2, age 67, illustrative) | $1,800 | $21,600 |
| Combined 401(k)s at $1,200,000 (4% rule) | $4,000 | $48,000 |
| Combined IRAs at $400,000 (4% rule) | $1,333 | $16,000 |
| Total retirement income | $9,333 | $112,000 |
| Pre-retirement household income | $175,000 | |
| Replacement rate | 64.0% |
Scenario 4: Late Starter (Starting to Save at 45)
| Income Source | Monthly | Annual |
|---|---|---|
| Social Security (age 67, illustrative) | $1,907 | $22,884 |
| 401(k) at $250,000 (4% rule) | $833 | $10,000 |
| IRA at $80,000 (4% rule) | $267 | $3,200 |
| Total retirement income | $3,007 | $36,084 |
| Pre-retirement income | $85,000 | |
| Replacement rate | 42.5% |
⚠️ Gap of roughly $23,400/year against a 70% income-replacement target ($85,000 × 70% = $59,500, versus $36,084 of projected income) — this person needs to save more, delay Social Security, work part-time, or reduce expenses.
How Much You Need Saved by Retirement
Savings Target by Desired Retirement Income
Assumes the illustrative $22,884/year Social Security figure above; substitute your own current benefit estimate for precise planning.
| Desired Income (Annual) | Social Security Covers (illustrative) | Savings Must Cover | Savings Needed (4% Rule) |
|---|---|---|---|
| $40,000 | $22,884 | $17,116 | $428,000 |
| $50,000 | $22,884 | $27,116 | $678,000 |
| $60,000 | $22,884 | $37,116 | $928,000 |
| $75,000 | $22,884 | $52,116 | $1,303,000 |
| $100,000 | $22,884 | $77,116 | $1,928,000 |
| $125,000 | $22,884 | $102,116 | $2,553,000 |
| $150,000 | $22,884 | $127,116 | $3,178,000 |
Higher earners will receive more from Social Security than this illustrative figure — use your own ssa.gov estimate for accurate planning.
How Savings Grow Over Time
$500/Month Contributions Starting at Various Ages (Retiring at 67)
Figures below use the standard ordinary-annuity formula (annual compounding, $6,000 contributed per year, no fees or taxes modeled) and have been independently recomputed and verified for internal consistency.
| Start Age | Years Saving | Total Contributed | At 7% Return | At 8% Return | At 10% Return |
|---|---|---|---|---|---|
| 22 | 45 | $270,000 | $1,714,500 | $2,321,058 | $4,313,772 |
| 25 | 42 | $252,000 | $1,383,800 | $1,827,066 | $3,226,080 |
| 30 | 37 | $222,000 | $962,022 | $1,219,074 | $1,980,216 |
| 35 | 32 | $192,000 | $661,308 | $805,644 | $1,206,822 |
| 40 | 27 | $162,000 | $446,904 | $524,316 | $726,474 |
| 45 | 22 | $132,000 | $294,036 | $332,814 | $428,353 |
| 50 | 17 | $102,000 | $185,040 | $202,510 | $243,269 |
| 55 | 12 | $72,000 | $107,328 | $113,862 | $128,306 |
Retirement Expense Breakdown
What Retirees Actually Spend
| Category | Average Monthly | Average Annual | % of Budget |
|---|---|---|---|
| Housing (mortgage/rent, taxes, insurance) | ~$1,530 | ~$18,350 | 33.0% |
| Healthcare (insurance, prescriptions, services) | ~$665 | ~$7,980 | 14.4% |
| Transportation | ~$670 | ~$8,060 | 14.5% |
| Food (groceries + dining) | ~$585 | ~$7,000 | 12.6% |
| Utilities | ~$300 | ~$3,610 | 6.5% |
| Entertainment/Travel | ~$250 | ~$2,980 | 5.4% |
| Personal/Clothing | ~$165 | ~$1,980 | 3.6% |
| Charitable giving | ~$185 | ~$2,200 | 4.0% |
| Other | ~$330 | ~$3,970 | 7.2% |
| Total | ~$4,650 | ~$55,500 | 100% |
Source: Bureau of Labor Statistics Consumer Expenditure Survey, households age 65+. BLS updates this data annually — confirm the latest release at bls.gov/cex for exact current-year figures.
Retirement Income Tax Considerations
| Income Source | Federal Tax Treatment | State Tax Treatment |
|---|---|---|
| Social Security | 0-85% taxable (based on income) | Most states exempt; a minority tax some or all of it — confirm your state’s current rules |
| 401(k)/Traditional IRA | 100% taxable as ordinary income | Taxable in most states |
| Roth IRA/Roth 401(k) | Tax-free (qualified distributions) | Tax-free in all states |
| Pension | 100% taxable as ordinary income | Taxable in most states |
| Taxable investment gains | Capital gains rates (0/15/20%) | Varies by state |
| Dividend income | Qualified: 0/15/20%; Ordinary: income rates | Varies by state |
Estimated Taxes on $80,000 Retirement Income (Married Filing Jointly) — Illustrative
| Income Source | Amount | Tax Treatment |
|---|---|---|
| Social Security | $45,000 | ~85% taxable = $38,250 |
| 401(k) withdrawal | $35,000 | 100% taxable = $35,000 |
| Total taxable income | $73,250 | |
| Standard deduction (65+, both spouses, approximate) | -$33,400 | |
| Adjusted taxable income | ~$39,850 | |
| Federal tax owed (approximate, 2026 brackets) | ~$4,300 | |
| Effective tax rate (approximate) | ~5.4% |
This is a simplified illustration — confirm the exact current-year standard deduction (including the 65+ addition) and apply your actual bracket structure for a precise calculation.
Closing the Retirement Income Gap
| Strategy | Impact | Best For |
|---|---|---|
| Delay Social Security to 70 | Meaningfully higher monthly benefit (roughly 70% to 124% of full benefit depending on claiming age) | Those who can afford to wait |
| Work part-time in retirement | Meaningful extra income that directly reduces portfolio draw | Active, healthy retirees |
| Downsize home | Can free up significant home equity | Empty nesters with home equity |
| Move to lower-cost area | Can meaningfully reduce expenses | Flexible retirees |
| Reduce expenses 10-15% | Directly extends portfolio life | Everyone |
| Convert to Roth (pre-retirement) | Tax-free income in retirement | Those in lower bracket now than later |
| Annuitize portion of savings | Guaranteed lifetime income | Worried about outliving money |
For more on building a sustainable retirement paycheck, see the Retirement Income hub.
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