How to Use the Retirement Payout by Age Calculator
Deciding when to start drawing retirement income is one of the biggest financial decisions you'll make. Waiting longer means more years of compounding growth and contributions โ resulting in a larger balance and higher monthly income.
Enter your current balance, monthly contribution, expected annual return, and current age. The calculator shows the projected balance and monthly payout if you start withdrawing at ages 60, 65, and 70.
How It's Calculated
Future value = Balance ร (1+r)^n + Monthly contribution ร 12 ร ((1+r)^n - 1) / r. Monthly payout = Future value รท (withdrawal period ร 12). Taxes on withdrawals are not included โ consult a tax advisor.
Tip
In the US, delaying Social Security benefits from 62 to 70 increases monthly benefits by roughly 76%. A similar compounding effect applies to your personal retirement savings.
Frequently Asked Questions
No. 401k and traditional IRA withdrawals are taxed as ordinary income. Roth IRA withdrawals are tax-free. This calculator shows pre-tax figures โ consult a tax advisor for your specific situation.
A diversified stock/bond portfolio historically returns 5โ8% annually over the long term. Conservative investors often use 4โ5%; aggressive investors may use 7โ9%. Past performance doesn't guarantee future results.
Starting at age 73, the IRS requires minimum withdrawals from traditional 401k and IRA accounts. The amount is based on account balance and life expectancy tables.