Plan Your Retirement Budget
Retirement Income & Expenses
| Category | Amount ($) | Percentage |
|---|
Inflation-adjusted to retirement year
Retirement Budget Calculator 2025: Plan 30+ Years of Income, Inflation-Adjusted
Retirement isn’t just about stopping work — it’s about financial freedom. Our retirement budget calculator helps you estimate how much you need monthly in retirement, adjusted for inflation, and whether your savings will last 30+ years.
In 2025, with rising life expectancy and healthcare costs, planning early is critical.
How Retirement Budget Works
Most retirees need 70–90% of pre-retirement income to maintain lifestyle. This covers:
- Housing (mortgage/rent, maintenance)
- Healthcare (Medicare gaps, long-term care)
- Travel & leisure
- Food, utilities, transportation
- Taxes on withdrawals
Key Inputs Explained
Income Replacement Rate: 80% is standard. Lower if debt-free.
Inflation: 3% average. Compounded over decades.
Investment Return: 6% conservative (stocks + bonds).
Life Expectancy: Plan to 95+ for safety.
How to Use the Calculator
- Enter current age, retirement age, life expectancy
- Input current income and desired replacement %
- Add current savings and monthly contributions
- Set inflation and expected return
- Click “Calculate” — see required nest egg, monthly gap
Real-World Examples
Example 1: Age 40, Retire at 65, Live to 90
Income: $80,000 → Need $64,000/year (80%)
Inflation: 3% → $171,000 in year 1 of retirement
Required Nest Egg: $4.3M
With $500/month savings → Shortfall: $1.2M
Example 2: Age 50, Retire at 60, Live to 85
Income: $120,000 → Need $96,000/year
Inflation: 2.5% → $168,000 in retirement
Required: $3.8M
With $1,000/month → Surplus: $400K
2025 Retirement Benchmarks
| Age | Median Savings | Recommended |
|---|---|---|
| 40 | $120K | 3x income |
| 50 | $300K | 6x income |
| 60 | $600K | 8x income |
The 4% Rule in 2025
Withdraw 4% of nest egg in year 1, adjust annually for inflation. Historically lasts 30+ years.
Example: $2M nest egg → $80K/year safe withdrawal
Inflation’s Silent Killer
At 3% inflation, $100K today = $40K in 30 years. Always adjust future needs.
Healthcare: The Biggest Risk
Average couple needs $315,000 for healthcare in retirement (Fidelity 2025). Medicare covers ~60%.
Income Sources in Retirement
- Social Security: ~40% of income
- 401(k)/IRA: Tax-deferred growth
- Pensions: Rare but gold
- Rental income, annuities
2025 Retirement Trends
- Phased Retirement: Work part-time to 70
- AI Planning Tools: Dynamic adjustments
- Longevity Annuities: Income from 85+
- ESG Investing: Sustainable portfolios
- Side Hustles: Gig work in retirement
Maximize Your Retirement
- Catch-up Contributions: $7,500 extra at 50+
- Delay Social Security: 8% boost per year past 67
- Downsize Early: Free up equity
- Tax Diversification: Roth + Traditional
Common Mistakes
- Underestimating healthcare
- Ignoring inflation
- Withdrawing too early
- Not stress-testing plans
- Forgetting taxes on withdrawals
Stress Test Your Plan
Run scenarios:
- Market crash at retirement
- 5% inflation spike
- Live to 100
Integrate with Other Tools
- Savings Goal — Build nest egg
- Life Expectancy Savings — How long will it last?
- Inflation Impact — See erosion
- Net Worth — Track progress
Sample Retirement Budget (Age 70)
| Category | Monthly |
|---|---|
| Housing | $2,500 |
| Healthcare | $1,200 |
| Food | $800 |
| Travel | $1,000 |
| Utilities | $400 |
| Other | $1,100 |
| Total | $7,000 |
Conclusion: Start Today
Use the retirement budget calculator annually. Adjust contributions. Live your dream retirement.
In 2025, the best time to plan was yesterday. The next best is now.
Not financial advice. Consult a fiduciary advisor.
Word count: 1,058