Retirement budget calculator

Use our retirement budget calculator to compare your anticipated income to your expected outgoings, so you can identify any shortfalls or spare income and plan accordingly. You can get the best results from this calculator by accurately entering all of your anticipated outgoings and sources of income in retirement. The totals can be shown for any selected age.

To get you started we have created three expenditure profiles, ‘High’, ‘Average’ and ‘Low’ - simply pick the one which most closely matches your circumstances and make changes to it. Alternatively, choose the ‘Custom’ profile and create your own expenditure profile from scratch.

Once you have selected your expenditure profile, ‘Your retirement budget simulation’ will appear on screen.

Step one – enter your details
Enter your age and current state of health.

Step two – add your income sources
Click on ‘EDIT’ and then enter each source of income you’re currently receiving, such as your income from employment, plus sources of income you’ll receive in the future, such as your state pension. The figures you enter should be AFTER any tax has been deducted. For existing sources of income you can indicate whether these will stop at a future date, whilst for future sources of income you can indicate when these will start.

Step three – add or amend your costs
Click on ‘EDIT’ and then add or amend your costs. As with your income, you can include both existing and future costs, and indicate when these costs will start and finish. Each cost can be classified as being either essential or non-essential, so you will need to check and edit this to match your personal situation.

It is important that you take the time to complete the above steps as accurately as possible so that your simulation is as accurate and therefore as helpful as it can be.

Once you’ve done this, Step four will show you whether you have a shortfall or surplus of income against your essential costs.

In addition, the graph plots your anticipated income against your essential and total retirement costs. If the income line is positioned above the total costs line then it’s good news, you have sufficient income to cover all of your costs. If the income line sits between the two cost lines then you may need to cut your planned spending back. If your income is below your essential costs then you may need to make more stringent changes. In all cases we would recommend you seek professional financial advice and guidance.

This graph also provides an indication of the percentage chance of living to certain ages, based on your own assessment of your general health*- your "Longevity". Please therefore remember to enter your current age and adjust the health indicator to show your current health.