Retirement Income Calculator: How Much Income Will I Receive?

Shawn Plummer, CRPC

Chartered Retirement Planning Counselor

Calculate How Much Retirement Income You Can Receive

Our retirement income calculator uses an annuity with a lifetime income rider for income distribution and generates realistic (not hypothetical) estimates. When you reach retirement age, the annuity contractually guarantees to pay a fixed monthly income for the rest of your life, including after the account has been spent down to ZERO. Unlike other investments, whose returns might vary, payments are guaranteed no matter the market conditions or your lifespan. Funding can come from cash, IRAs, 401(k), 403(b), 457 plans, Thrift Savings Plans, Roth IRAs, 401(a), and other retirement accounts without tax issues.

Average Retirement Income in the U.S.

In the United States, the average monthly retirement income is $4,381.25, according to the U.S. Census Bureau equating to an annual income of $52,575 for adults aged 65 and older. This income typically comes from a combination of Social Security benefits, pensions, retirement savings accounts like IRAs and 401(k)s, and other investment sources. Understanding these income streams and their potential contributions is crucial for effective retirement planning.

Retirement Income Calculator

Best Retirement Income Streams

To ensure a stable and sufficient retirement income, it is essential to diversify your income streams. Key options include:

  • Fixed-Indexed Annuities: These offer Guaranteed Lifetime Withdrawal Benefits (GLWB), providing market protection and guaranteed income.
  • Social Security Benefits: A significant source of income for most retirees.
  • Pension Plans: If available, these can offer a steady income.
  • Investment Portfolios: Diversifying investments can balance risk and return.
  • Real Estate Investments: Rental income can provide a reliable income stream.
  • Savings Accounts and CDs: Safe but generally lower-yield options.
  • Part-Time Work: For those who prefer staying active and earning additional income.

Calculating Needed Savings

The amount you need to save for retirement depends on your desired annual income and retirement age. For example:

  • To retire with an annual income of $50,000, you need about $694,444 by age 60, $454,543 by age 65, or $315,388 by age 70.
  • To retire with an annual income of $100,000, you need about $1,388,889 by age 60, $1,261,034 by age 65, or $1,169,591 by age 70.

How We Can Help

At The Annuity Expert, we understand the complexities and emotional challenges of retirement planning. With 15 years of experience as an insurance agency, annuity broker, and retirement planner, we are dedicated to helping you find the best solutions at the lowest costs.

We recognize that many face the uncertainty of having a stable, sufficient income throughout retirement. This uncertainty can lead to anxiety and stress, affecting overall well-being. We aim to eliminate this stress by providing clear, actionable plans that ensure financial security.

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What We Recommend

To achieve your desired retirement income, we recommend the following steps:

  1. Initial Consultation: Contact us for a free consultation. During this meeting, we will assess your current financial situation, retirement goals, and income needs. The main benefit is gaining a clear understanding of your financial landscape and the steps needed to achieve your goals.
  2. Customized Plan Development: Based on your consultation, we will create a tailored retirement income plan. This includes selecting the best income streams, investment strategies, and protection mechanisms like annuities. The main benefit is a comprehensive, personalized plan that addresses your unique needs and goals.
  3. Implementation and Monitoring: We will help you implement your retirement plan and provide ongoing monitoring and adjustments as needed. The main benefit is continuous support and adaptation to changing circumstances, ensuring your retirement income remains secure and sufficient.

Features and Benefits

  • Expert Guidance: Benefit from our extensive experience and knowledge in retirement planning.
  • Personalized Plans: Receive customized strategies tailored to your specific financial situation and goals.
  • Diverse Income Streams: Secure your retirement with a mix of reliable income sources.
  • Continuous Support: Enjoy peace of mind with our ongoing support and plan adjustments.

Overcoming Objections

  • Objection: Concerns about fees
    Our Solution: We offer transparent pricing so you know exactly what to expect, eliminating any hidden costs.
  • Objection: Complexity of retirement planning
    Our Solution: We simplify the planning process, making it easy to understand and follow.
  • Objection: Risk of running out of money in retirement
    Our Solution: Working with us ensures you make informed decisions that maximize your income and minimize stress, giving you peace of mind about your financial future.

Failing to plan adequately for retirement can lead to financial insecurity and anxiety.

By partnering with The Annuity Expert, you secure a stable, sufficient income, leading to a worry-free and fulfilling retirement. The positive outcomes include financial peace of mind, confidence in your future, and the ability to enjoy your retirement years to the fullest.

Contact us today for free advice or a free quote, and take the first step towards a secure and enjoyable retirement.

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Questions From Our Readers

What is a good retirement income per year?

Most financial specialists recommend that you aim for 70-80% of your pre-retirement salary as income post-retirement. For instance, if your annual earnings were $50,000 ($ 4,167 a month) before retirement, it is suggested that you make around $35,000 -$40,000 annually while on retirement.

How much money do you need to retire with $150,000 a year income?

Our research shows that using annuities, a person would need between $785,880 and $2,307,692 saved to produce $150,000 annually in payments for the rest of the retiree’s lifetime.

What is the definition of the cost of living in retirement?

The cost of living in retirement refers to the expenses one can expect after leaving the workforce. It includes housing, healthcare, food, transportation, and other essential costs. The actual cost varies based on factors like location, lifestyle choices, and healthcare needs. Planning for retirement and saving adequately can help in managing the cost of living in retirement.

How much income can $200,000 generate?

Using an annuity with a lifetime income rider or guaranteed lifetime withdrawals, $200,000 would generate between $15,000-18,000 yearly for the rest of your life.

How much income can $500,000 get me?

$500,000 can generate between $37,500 and $40,000 annually for the rest of your life using an annuity with a lifetime income rider.

I am 67 and want to be able to retire with $50,000 a year using my retirement funds. What do I need to do?

Using an annuity with a lifetime income rider, $650,000 would get you about $50,000 per year in guaranteed income for the rest of your life.

How much money do I need to retire with $80,000 a year?

If you used an annuity with guaranteed lifetime withdrawals or a lifetime income rider, you would need between $1,000,000 and $1,250,000 to receive $80,000 annually for the rest of your life.

I am 65 and about to retire. Based on our current expenses and desire to travel, I think my wife and I will need about $100k per year. Is this doable?

Yes. If you purchase an annuity for $1,500,000 and start payments immediately using a lifetime income rider you would be guaranteed between $100,000 and $120,000 per year for the rest of your life.

Hello. I have $3 million in my current retirement account; I am 65 and looking at cashing it out. What is the best way to cash out a large chunk of money?

If you transferred your $3,000,000 into an annuity with a living rider benefit, you would receive between $225,000 and $240,000 annually for the remainder of your life.

How much money do I need to retire with $75,000 a year?

At age 65, using a guaranteed lifetime income rider, a $1 million dollar annuity will pay out between $75,000 and $80,000 annually for the rest of your life.

How much money do I need right now if I want to retire and receive $200,000 per year?

Assuming that you are at retirement age and want to start benefits immediately, you would need roughly $2,500,000 to $3,000,000 to receive $200,000 annually. We would put this into an annuity with a guaranteed lifetime withdrawal benefit or lifetime income rider, ensuring payments for the rest of your life.

Can I retire with $2 million in savings?

Investing in an annuity can provide a stable income. For example, a $2 million annuity at 65 might pay approximately $153,000 annually. This income continues for life, and any remaining balance can be passed to heirs.

Can I retire with $1 million in savings?

Yes. Rolling over a 401k into an IRA annuity will provide an annual income of roughly $110,625 for the rest of the 65-year-old’s lifetime. Any remaining balance will be passed down to beneficiaries. Additionally, you can collect Social Security Benefits.

Can I retire with $2.5 million in savings?

With $2.5 million, buying an annuity could provide an annual income of about $184,375 for life, passing any remaining balance to beneficiaries.

Are annuities subject to RMD?

Yes, most annuities require Required Minimum Distributions (RMDs) once you reach a certain age, typically starting at age 72. Failure to take RMDs can result in tax penalties. Confirm specific rules with your annuity provider.

How much do I need to retire with $300,000 per year?

If you used an annuity with guaranteed lifetime withdrawals or a lifetime income rider, you would need between $4,000,000 and $4,250,000 to receive $300,000 annually for the rest of your life.

Shawn Plummer, CRPC

Chartered Retirement Planning Counselor

Shawn Plummer is a Chartered Retirement Planning Counselor, insurance agent, and annuity broker with over 14 years of first-hand experience with annuities and insurance. Since beginning his journey in 2009, he has been pivotal in selling and educating about annuities and insurance products. Still, he has also played an instrumental role in training financial advisors for a prestigious Fortune Global 500 insurance company, Allianz. His insights and expertise have made him a sought-after voice in the industry, leading to features in renowned publications such as Time Magazine, Bloomberg, Entrepreneur, Yahoo! Finance, MSN, SmartAsset, The Simple Dollar, U.S. News and World Report, Women’s Health Magazine, and many more. Shawn’s driving ambition? To simplify retirement planning, he ensures his clients understand their choices and secure the best insurance coverage at unbeatable rates.

The Annuity Expert is an independent online insurance agency servicing consumers across the United States. The goal is to help you take the guesswork out of retirement planning and find the best insurance coverage at the cheapest rates

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