Retirement Viability Calculator
Calculate whether you'll be able to sustain yourself in retirement by combining your estimated public pension with your savings, factoring in inflation and life expectancy.
Results
Is retirement viable?
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Estimated public pension (monthly)
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Monthly gap (expenses - pension)
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Estimated public pension (annual)
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Annual gap (expenses - pension)
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Savings needed to cover gap
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Estimated pension = (Average salary × 0.5) × (Years worked / 35). Gap = Expenses - Pension. Viability = Initial savings + (Pension × years) >= Total expenses.
Savings vs. cumulative expenses evolution
Public pension vs. monthly expenses
When should you use this calculator?
This calculator helps you estimate whether it's realistic to retire at the age you want, by combining your estimated public pension, your accumulated savings, and the monthly expenses you expect to have in retirement. It goes beyond the legal retirement age question — it's about whether your income and savings will actually cover your real expenses.
How it is calculated
The calculation combines three elements: your estimated public pension (based on your average salary and years of contributions), your current savings and investments, and the monthly expenses you expect once retired. The calculator estimates your approximate pension using the formula (average salary × 0.5) × (years contributed / 35), compares that income with your expected spending, and calculates whether your savings are enough to cover the gap over the retirement years you specify.
Practical example
A numerical example: if you expect €30,000 a year from your pension, have €300,000 saved, and your estimated annual spending is €35,000, there's a €5,000/year gap that needs to be covered by your savings. If you expect to spend 30 years in retirement, you'd need €150,000 from your savings to cover that gap (not counting any returns those savings might keep generating, which would extend how long they last).
Common mistakes
Most people underestimate their retirement expenses: besides regular costs, it's worth budgeting for medical expenses (which tend to rise with age), travel and leisure if you plan to enjoy more free time, and the cumulative effect of inflation over a 20-30 year period, which can significantly erode the purchasing power of a fixed amount of savings.
The public pension calculation used here is an indicative simplification based on the Spanish system (average salary and years contributed), not the exact official Social Security calculation, which factors in many more variables (the regulatory base from recent years, reduction coefficients for early retirement, etc.). If you live outside Spain, your country's pension system may work very differently.
Legal and tax context
The result is an indicative estimate, not a complete financial plan. For a precise calculation of your public pension, check your contribution record and an official simulation with your national pension authority; for a personalized retirement plan that accounts for your full tax and wealth situation, consult a financial advisor.
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Frequently asked questions
How is the public pension estimated in this calculator?
It uses a simplified, indicative formula based on the Spanish system (average salary × 0.5 × years contributed/35). It isn't the official calculation: for an exact figure, check your contribution record with your national pension authority. If you live in another country, your pension system likely works differently.
What inflation rate should I assume?
Historical inflation in the eurozone has averaged around 2% a year, though it's been higher (3-5%) in recent years. For long-term projections, 2-3% is a reasonable assumption.
What return should I assume for my retirement savings?
It depends on how they're invested: stocks or ETFs have historically returned around 5-7% annually; bonds around 2-3%; savings accounts or deposits 0-2%. A weighted 3-4% is a reasonable conservative assumption for a mixed portfolio.
What monthly expenses should I assume in retirement?
As a starting point, multiply your current spending by 1.3-1.5 if you expect to have more free time for activities and travel, and add an extra margin for medical expenses, which tend to rise with age.
What can I do if the result says it isn't viable?
The available levers are: working more years (more contributions and fewer retirement years to cover), reducing expected spending, increasing your current savings, or seeking higher investment returns by taking on more risk.
Does this calculator include a survivor's pension or your partner's pension?
No. The calculation assumes only your personal pension; if you have a partner, their income or pension can supplement household expenses and improve joint viability.
Does this calculator account for taxes on the pension or on withdrawing your savings?
No. Taxation on public pensions and on withdrawals from savings and investments varies by country, product, and personal situation, so it isn't included in the calculation.
How do I get an official estimate of my public pension in Spain?
Through Social Security's online portal (Tu Seguridad Social), where you can check your contribution record and simulate your pension using your actual contribution data.