Pension floor, after-tax portfolio payment, inflation escalator, and legacy reserveLive current inputs
Finance & Money
Retirement Income Payment Calculator
Solve an inflation-linked retirement income payment that preserves a chosen legacy reserve after pension income, investment return, fees, and withdrawal tax.
First-year gross portfolio payment—
First-year after-tax portfolio payment—
First-year total monthly income—
Projected ending reserve—
Total nominal withdrawals—
Total pension income—
Initial withdrawal rate—
Funding assessment—
Retirement income layers
Pension floor, after-tax portfolio payment, inflation escalator, and legacy reserve
The income band distinguishes guaranteed-like external income from portfolio-funded cash and the capital reserved for the final year.
Live decision table
Retirement income checkpoints
Track payment, pension, tax, balance, and reserve margin over retirement.
| Year | Gross withdrawal | After-tax withdrawal | Pension income | Portfolio balance | Reserve margin |
|---|
Cash-flow schedule
Annual and monthly cash-flow schedule
How to use
Enter an income floor and capital policy before solving
- Use investable retirement assets only.
- Enter pension income separately.
- Choose a realistic horizon and ending reserve.
- Stress return below the planning case.
Calculation logic
An affordable first payment depends on future escalation
The solver increases withdrawals with inflation while investment returns act on the declining balance.
Pension income supports spending but does not alter the portfolio withdrawal that preserves the legacy target.
Calculation method
Reverse-solve an inflation-linked withdrawal that preserves the entered ending reserve
A solver changes the first monthly withdrawal until the simulated ending balance matches the desired reserve.
Detailed calculation process and general formulas
B_m=B_(m-1)(1+r)-W_mW_m=W_0(1+π)^(m/12)W_net=W_m(1-τ)B_N=LIncome=W_net+PSymbols, meanings, and units
- B_m
- portfolio balancecurrency
- r
- monthly returndecimal/month
- W_m
- gross portfolio withdrawalcurrency/month
- π
- annual payment growthdecimal/year
- τ
- withdrawal tax ratedecimal
- L
- ending reservecurrency
Decision checks
Review risks outside a smooth-return model
- Sequence-of-returns risk.
- Changing taxes and benefits.
- Healthcare and long-term care.
- Required distributions and account order.
Income anatomy
What funds the first retirement month
Pension, taxes, portfolio cash, and retained capital answer different planning questions.
After-tax payment
—Spendable monthly cash from the portfolio.
Total income
—Portfolio payment plus entered pension.
Initial withdrawal rate
—First annual portfolio withdrawal relative to starting assets.
Decision takeaway: Use the payment as a planning baseline and stress it against poor early returns.
Practical applications
Decisions this calculator is designed to support
Pension-supported retirement
A pension covers part of essential spending while investments fund the balance.
What the result clarifies: The visual separates the income floor from market-dependent cash.
Legacy reserve policy
A retiree wants capital remaining after thirty years.
What the result clarifies: The solver reduces payment to preserve that ending reserve.
Worked example
Current-input substitution and reconciliation
Important note
This deterministic projection is not investment, tax, or benefit advice and does not model return sequence, fees, required distributions, healthcare shocks, or longevity beyond the entered horizon.
Retirement Income Payment Calculator FAQ
Is pension income taxed?
This page applies the entered tax rate only to portfolio withdrawals.
Why can payment rise over time?
It follows the entered annual inflation adjustment.
Is the payment guaranteed?
No. It depends on assumed returns and horizon.