1. What is Retirement Cash Flow Analysis?

Retirement cash flow analysis examines the relationship between income and expenses during retirement. It helps determine whether your retirement income will cover your expenses and for how long.

2. How Does the Calculator Work?

The calculator uses the cash flow formula:

Where:

• Retirement Income — All sources of retirement income (pensions, Social Security, investments, etc.)
• Expenses — All anticipated retirement expenses (housing, healthcare, food, travel, etc.)

Explanation: Positive cash flow indicates your income covers expenses with surplus, while negative cash flow means expenses exceed income.

3. Importance of Cash Flow Calculation

Details: Regular cash flow analysis helps retirees adjust spending, identify potential shortfalls early, and make informed decisions about withdrawals from retirement accounts.

4. Using the Calculator

Tips: Enter all retirement income sources combined in dollars and all anticipated expenses combined in dollars. Use annual or monthly figures consistently.

5. Frequently Asked Questions (FAQ)

Q1: What constitutes retirement income?
A: Includes Social Security, pensions, annuities, investment income, rental income, part-time work income, and retirement account withdrawals.

Q2: What expenses should be included?
A: Include housing, utilities, food, healthcare, insurance, transportation, entertainment, travel, gifts, and unexpected expenses.

Q3: How often should I do this calculation?
A: Annually at minimum, or whenever your income or expenses change significantly.

Q4: What if my cash flow is negative?
A: Consider reducing discretionary spending, delaying Social Security, working part-time, or adjusting investment withdrawals.

Q5: Should taxes be included?
A: Yes, include estimated taxes on taxable income sources in your expense calculation.