1. What is the Married Couple Retirement Calculator?

This calculator helps married couples estimate their annual retirement income based on their combined savings and a chosen withdrawal rate. It uses the common 4% rule as a default but allows for customization.

2. How Does the Calculator Work?

The calculator uses the simple formula:

Where:

• \( Combined\ Savings \) — Total retirement savings of both partners
• \( Rate \) — Annual withdrawal rate (percentage)

Explanation: The formula calculates the sustainable annual withdrawal amount from retirement savings based on the selected withdrawal rate.

3. Importance of Retirement Planning

Details: Proper retirement planning ensures financial security in later years. For married couples, combining resources and planning jointly is essential for maintaining lifestyle and covering healthcare costs.

4. Using the Calculator

Tips: Enter your total combined retirement savings in dollars and your preferred annual withdrawal rate (4% is a common default). The calculator will show your estimated annual retirement income.

5. Frequently Asked Questions (FAQ)

Q1: What is the 4% rule?
A: The 4% rule suggests withdrawing 4% of retirement savings annually, adjusted for inflation, which historically would last 30+ years.

Q2: Should we use gross or net savings?
A: Use after-tax retirement savings for more accurate results, as taxes will affect actual disposable income.

Q3: How does Social Security factor in?
A: This calculator shows portfolio withdrawals only. Add expected Social Security benefits separately for total income.

Q4: Is the withdrawal rate guaranteed?
A: No, market performance affects portfolio longevity. Consider consulting a financial advisor for personalized planning.

Q5: Should we include home equity?
A: Only include liquid assets unless you plan to downsize or use reverse mortgages in retirement.