Our Pension Calculator helps you estimate how much you could accumulate by retirement and the sustainable monthly income your savings may support in today’s dollars. By adjusting your contributions, returns, and inflation, you can explore realistic scenarios and close any retirement income gap.
Why use a Pension Calculator?
Planning retirement isn’t just about a big savings number—it’s about ensuring your money translates into steady income you won’t outlive. A Pension Calculator converts your current savings and contributions into a projected pot at retirement, then estimates a sustainable monthly income considering returns and inflation. This shows whether you’re on track or facing a shortfall, and by how much.
What this calculator considers
- Time to retirement: years between your current age and planned retirement age.
- Current savings and monthly contributions in today’s dollars.
- Expected investment returns before and during retirement.
- Inflation, so results are shown in real purchasing power.
- Life expectancy, to model how long your income should last.
- Desired monthly retirement income and other guaranteed income to find your gap.
How the Pension Calculator works
Before retirement, the calculator applies an expected return to your current savings and contributions. It uses inflation-adjusted (real) rates where possible, which means your monthly contribution is treated as keeping pace with inflation to maintain purchasing power. At retirement, it computes a sustainable payout using an annuity-style formula based on your inflation-adjusted return during retirement and the number of years your savings must last.
Understanding the results
- Projected savings (today’s dollars): Your nest egg translated into current purchasing power, making scenarios easier to compare.
- Sustainable monthly income: A realistic estimate of how much you can withdraw each month so your money lasts through your selected life expectancy.
- Income gap: The difference between your desired monthly income and the total of sustainable withdrawals plus any guaranteed income (like a pension or Social Security). A positive number indicates a shortfall to address.
- Suggested monthly contribution: An estimate of how much you may need to save each month (in today’s dollars) to close the gap.
Tips to improve your retirement outlook
- Increase contributions: Even small increases add up significantly over time due to compounding.
- Start sooner: More years of compounding can have a larger impact than chasing higher returns.
- Optimize asset allocation: A diversified portfolio aligned to your risk tolerance can improve risk-adjusted returns.
- Mind fees and taxes: High fees erode returns; tax-advantaged accounts can improve outcomes.
- Adjust expectations: Revisit retirement age, desired income, or spending assumptions as your situation changes.
What about inflation?
Inflation reduces purchasing power over time. By modeling returns and income in real terms, the Pension Calculator helps you focus on what matters: how far your money will actually go. You can also experiment with different inflation rates to see how sensitive your plan is to rising prices.
Is this financial advice?
No. The Pension Calculator is an educational tool. It uses simplified assumptions and cannot predict market performance. Use it to frame decisions and talk with a qualified financial professional who can tailor guidance to your goals, risk tolerance, and tax situation.
Next steps
Try multiple scenarios—increase contributions, shift retirement age, or tweak returns and inflation. Watch how your projected income and gap change. With regular saving and thoughtful adjustments, you can build a retirement plan that feels achievable and resilient.