Retirement
The retirement budget calculator: live on the number, not the dream
Most retirement calculators work backward from an assumed withdrawal rate. This one works forward: build the actual monthly budget you expect to live on, then test it against pensions and withdrawals. The forward method catches the real problems — lumpy healthcare, travel years, and the car replacement cycle.
- Bottom-up spending
Real categories and real amounts, not a percentage of salary.
- Dated big years
Travel, healthcare and car years are dated events, not averages.
- Income test
Pension + withdrawals must cover the dated months, month by month.
- Buffer built in
A 10% contingency line absorbs the inevitable surprises.
Building the spending side
- List fixed costs: housing, utilities, insurance, taxes, subscriptions.
- Add healthcare honestly — premiums plus a dated allowance for co-pays.
- Estimate variable lines: food, transport, entertainment, giving.
- Add the lumpy years: travel, car replacement, home repair.
Testing it against income
| Source | Monthly | Dated? |
|---|---|---|
| Pension | Fixed | Monthly |
| Social security / state | Fixed | Monthly |
| Withdrawals | Varies | Quarterly lump |
| Part-time work | Varies | Per job |
The withdrawal-rate reality check
The 4% rule says withdraw 4% of the portfolio in year one. The forward budget tells you whether that number covers the dated years you actually planned.
If the budget exceeds the income, the levers are the same as at 30: cut a line, delay a dated expense, or add income. The calendar shows exactly where the shortfall lands.
Frequently asked questions
How do I calculate my retirement budget?
Build a forward monthly budget with real categories, add dated lumpy years, then test it month by month against pensions and withdrawals.
How much will I spend in retirement?
Most retirees spend 70–85% of pre-retirement income, but the honest answer comes from building your own category budget — especially healthcare.
Is the 4% rule still valid?
It is a useful starting point, not a guarantee. Test it against your real dated budget; sequence risk in the first decade matters more than the average.
What do retirees forget in their budget?
Healthcare inflation, car and home replacement cycles, travel years, and taxes on withdrawals — all of which are dated events, not averages.
Retire on a budget that matches life
Free dated planning for the years ahead.