Retirement Income Calculator
Free retirement income calculator. Estimate total monthly income from Social Security, pensions, annuities, and portfolio withdrawals. Identify income gaps and plan for a secure retirement.
Retirement Spending Calculator
Free retirement spending calculator. Project annual expenses through retirement with the spending smile curve, inflation adjustments, and lifestyle phase modeling.
$
%
%
Spending Smile Adjustments
Active years (retire-72)
%
Quieter years (73-82)
%
Healthcare years (83+)
%
Total Lifetime Spending
$2,176,022.00
Present value: $1,346,012.00 | 25 years
First Year⧉
$69,000.00
$5,750.00/month
Last Year⧉
$128,066.00
$10,672.00/month
Peak Year⧉
$128,066.00
Age 89 (No-Go)
Inflation Multiplier⧉
1.9x
First to last year
Spending by Phase
🏃
Go-Go
$613,571.00
28% of total
🚶
Slow-Go
$740,627.00
34% of total
🏥
No-Go
$821,824.00
38% of total
Spending Projection
| Age | Phase | Annual | Monthly | Cumulative |
|---|---|---|---|---|
| 65 | Go-Go | $69,000.00 | $5,750.00 | $69,000.00 |
| 66 | Go-Go | $71,070.00 | $5,923.00 | $140,070.00 |
| 70 | Go-Go | $79,990.00 | $6,666.00 | $446,320.00 |
| 72 | Go-Go | $84,861.00 | $7,072.00 | $613,571.00 |
| 73 | Slow-Go | $64,605.00 | $5,384.00 | $678,176.00 |
| 75 | Slow-Go | $68,540.00 | $5,712.00 | $813,260.00 |
| 80 | Slow-Go | $79,456.00 | $6,621.00 | $1,188,063.00 |
| 82 | Slow-Go | $84,295.00 | $7,025.00 | $1,354,198.00 |
| 83 | No-Go | $107,253.00 | $8,938.00 | $1,461,452.00 |
| 85 | No-Go | $113,785.00 | $9,482.00 | $1,685,707.00 |
| 89 | No-Go | $128,066.00 | $10,672.00 | $2,176,022.00 |
Based on the retirement spending smile curve. Actual spending varies based on health, lifestyle, and location. Does not include one-time expenses or long-term care.
Planning notes, formulas, and examples
About the Retirement Spending Calculator
The Retirement Spending Calculator projects your annual expenses from retirement through life expectancy, accounting for inflation and the well-documented spending smile curve. Research shows retirees don't spend consistently — spending is higher in early active years, dips in the middle, then rises again with healthcare costs.
This calculator models three retirement phases: the "Go-Go" years (active travel and hobbies), "Slow-Go" years (reduced activity), and "No-Go" years (healthcare-dominated). Each phase has its own spending adjustment, giving you a more realistic projection than constant-dollar models.
By understanding where your money goes and when, you can build a more accurate withdrawal strategy and avoid both overspending early and unnecessary deprivation. A retiree who budgets $60,000 per year in today's dollars may actually spend $72,000 in the first decade of retirement on travel and activities, $48,000 in the quieter middle years, and $65,000 or more in the final phase as healthcare costs escalate. Modeling these shifts prevents the common mistake of applying a single spending figure to a 30-year period that is anything but uniform.
When This Page Helps
Most retirement calculators assume flat inflation-adjusted spending, but real spending follows a smile curve. Early retirees often spend 20% more on travel and hobbies, spending drops 10-20% in the mid-70s, then rises with medical costs in the 80s. This calculator captures that pattern for realistic planning. Matching your withdrawal strategy to the spending curve can extend your portfolio's lifespan by several years compared to flat-rate assumptions.
How to Use the Inputs
- Enter your current annual spending and expected retirement age.
- Set life expectancy and general inflation rate.
- Adjust the spending increase for active years and reduction for slow years.
- Set the age thresholds for each retirement phase.
- Review the year-by-year spending projection.
- Compare total lifetime spending to your savings.
Formula used
Spending(year) = Base × (1 + inflation)^year × Phase Adjustment
Go-Go Phase (retire to ~72): Base × 1.10-1.20
Slow-Go Phase (~73 to ~82): Base × 0.80-0.90
No-Go Phase (~83+): Base × 1.00-1.10 (healthcare driven)
Lifetime = ∑ Spending(year)Example Calculation
Result: Lifetime spending: ~$2.05M nominal ($1.35M today's dollars)
With $60,000 base spending, the Go-Go years (65-72) average $66,000-$85,000/year (higher activity + inflation). Slow-Go years (73-82) average $75,000-$95,000 (reduced spending offset by inflation). No-Go years (83-90) average $100,000-$125,000 (healthcare surges). Total: ~$2.05M nominal.
Tips & Best Practices
- Budget 10-20% more in the first 5-10 years for travel and bucket-list activities.
- Housing is typically the largest expense — consider whether downsizing is part of your plan.
- Healthcare costs typically rise 5-7% annually, faster than general inflation.
- Many retirees spend less on clothing, commuting, and work-related expenses, offsetting some increases.
- Consider geographic relocations for lower cost-of-living areas in the Slow-Go phase.
- Keep an emergency fund of 1-2 years' spending outside your investment portfolio.
The Three Phases of Retirement Spending
Retirement spending typically falls into three distinct phases. The Go-Go years (65-72) are characterized by active travel, dining, hobbies, and social activities. The Slow-Go years (73-82) see a natural reduction in activity and discretionary spending. The No-Go years (83+) are dominated by rising healthcare and potential long-term care costs.
Real vs Nominal Spending
Nominal spending (actual dollars) rises throughout retirement due to inflation, even when real spending (purchasing power) declines. This can create a false sense of security when looking at declining real spending — your actual cash outflows still increase. Always plan in both nominal and real terms.
The 4% Rule Connection
The 4% rule assumes constant real spending, but the spending smile suggests you can safely spend more early and less later. Some planners advocate a "4.5% with guardrails" approach that allows higher initial withdrawals because mid-retirement spending naturally drops. This can mean enjoying retirement more without increasing longevity risk.
Sources & Methodology
Last updated:
Methodology
This worksheet projects retirement spending forward in phases, applying the user-entered spending adjustments and inflation assumptions over the retirement horizon. It is a planning aid based on simplified phase-of-retirement modeling, not a promise that actual household spending will follow the same path.
Sources
- Consumer Expenditure Surveys (CE) (BLS) — Official U.S. household spending data source for expenditure patterns and category context.
- Retirement Expenditures (BLS Monthly Labor Review) — BLS analysis of retiree spending patterns and expenditure shifts across retirement.
- CPI Inflation Calculator (BLS) — Official U.S. inflation reference used for purchasing-power and spending escalation context.
Frequently Asked Questions
Research by David Blanchett (Morningstar) shows that real retirement spending follows a U-shaped or "smile" pattern: higher in early active years, lower in middle years, then higher again due to healthcare costs. This challenges the common assumption of flat inflation-adjusted spending throughout retirement.
A common starting point is 70-80% of pre-retirement income, but this varies widely. Active retirees with travel plans may need 100%+ initially. Those with paid-off mortgages and modest lifestyles may need only 50-60%. Focus on your actual planned expenses rather than rules of thumb.
Typically: housing (25-35%), healthcare (15-25%), food (10-15%), transportation (10-15%), and entertainment/travel (5-15%). Healthcare's share increases significantly with age, especially after 80 when long-term care may be needed.
At 3% inflation, prices double every 24 years. A retiree spending $60,000/year at 65 would need $121,000/year at 89 just to maintain the same purchasing power. This is why nominal spending rises even if real spending is flat or declining.
For a 65-year-old, there's roughly a 20% chance of living to 95 (30 years). Planning for at least 30 years is prudent to avoid outliving your savings. Some planners recommend planning to age 95 or even 100 for conservative estimates.
Major one-time expenses include home repairs or renovations, new vehicles, family gifts (weddings, education), relocation costs, and long-term care. Budget a contingency of $5,000-$15,000/year or maintain a separate reserve fund for these irregular expenses.
More in this topic
Retirement Healthcare Cost Calculator
Free retirement healthcare cost calculator. Estimate lifetime medical expenses including Medicare premiums, Medigap, Part D, and out-of-pocket costs with medical inflation projections.
Retirement Gap Calculator
Free retirement gap calculator. Compare projected expenses vs income from Social Security, pensions, and portfolio withdrawals. Find shortfalls and solutions.