A retirement budget planner sounded simple until I actually tried to build one. Income is easy enough to list. Expenses are the part that gets fuzzy — healthcare costs change, housing costs creep up, and it’s easy to underestimate the “everything else” category.
So I built this retirement budget planner to compare expected income against expected expenses, and to show what a monthly shortfall actually means in savings terms.
Retirement Budget Planner
Enter your expected monthly income and expenses. This works whether you’re already retired or still planning ahead.
This is a simplified snapshot based on the numbers you enter. It doesn’t account for taxes, inflation, or one-time expenses. Treat it as a starting point, not a full financial plan.
How to Use This Retirement Budget Planner
List your expected guaranteed income first — Social Security and any pension or annuity income. Then estimate your monthly expenses as realistically as you can, especially healthcare, which tends to run higher than people expect. If you’re not sure where to start on Social Security, our Social Security Calculator can help you estimate your benefit at different claiming ages.
Why This Retirement Budget Planner Uses the 4% Rule
A monthly deficit doesn’t necessarily mean trouble — it just means you’ll be drawing down savings to cover the gap. The nest-egg estimate above uses the “4% rule,” a common (though imperfect) guideline suggesting you can withdraw about 4% of an invested portfolio per year with a reasonable chance of not running out of money over a long retirement. The SEC’s investor.gov retirement withdrawal guide covers this and other withdrawal strategies in more depth. It’s a rough planning tool, not a guarantee.
Common Budget Categories People Underestimate
- Healthcare — Medicare premiums, supplemental coverage, and out-of-pocket costs add up faster than most people expect. See our Medicare Part B cost guide for current numbers.
- Home maintenance — repairs and upkeep don’t stop just because you’re retired.
- Long-term care — not a monthly budget line for most people, but worth planning for separately. See our Long-Term Care Cost Estimator.
Frequently Asked Questions
How much retirement income do I actually need?
It depends entirely on your expenses, not a general percentage of your former salary. This calculator compares your specific expected income against your specific expected expenses rather than relying on a generic rule of thumb.
What if I have a monthly shortfall?
A shortfall means you’ll need to draw from savings, work longer, reduce expenses, or some combination. The nest-egg estimate above gives a rough sense of how much additional savings would be needed to fully cover the gap.
Does this calculator account for taxes?
No. Taxes vary significantly based on your income sources and state, so this tool focuses on a pre-tax cash flow snapshot. Build in a buffer for taxes when planning your actual budget.
Should I include long-term care costs in my monthly budget?
Not usually as a routine monthly line item, since most people don’t need care immediately. It’s better planned as a separate contingency — see our Long-Term Care Cost Estimator for typical costs by care type.
How often should I redo this budget?
At least once a year, or whenever a major expense changes (a new Medicare plan, a move, a health change). Healthcare and housing costs in particular tend to shift over time.
This calculator is for general planning purposes only, not personalized financial advice. See our affiliate disclosure.