I made a simple spreadsheet, as follows:
Beginning balance at age 65 = $1,000,000
Income earned on beg bal = 4%
Inflation = 2%
Regular annual withdraw = $60,000/yr at age 65, then for all future years increases at inflation rate
Special withdrawals = $0 for all years
Social Security benefit = $24,000/yr at age 65, then for all future years increases at indexing rate
Social Security benefit indexing rate = 0%
IRS tax brackets as of 2015 (need to add state/local taxes, if any)
Each year, take beginning balance, add income on beginning balance, add soc sec benefit, subtract tax on income and benefit, subtract regular withdrawal, subtract any special withdrawal, result is ending balance for that year which carries to beginning balance for the next year.
Under assumptions above, the balance goes to zero at age 92.
You can play with the assumptions. PM your email, I'll send you the spreadsheet. Please let me know if you find any errors. And I'd be interested in everyone's comments about how reasonable any of these assumptions are. You can go to a Social Security website and check on your projected benefit at an assumed age of retirement.
Note: I'm not your or anyone's financial adviser, this is not investment advice, and the spreadsheet could be riddled with errors.
A lot depends on your planned retirement lifestyle. If you have a paid off house, moderate upkeep and property taxes, reasonable habits, and no big medical bills, does the assumed budget of $84K/yr in total spending ($7K/mo) make sense? One of my close friends is retired, living like that, and is very content. But she isn't trying to impress anyone with her lifestyle either.
Also, a lot depends on your health. Plug in an uninsured $250K medical bill at age 70 in the Special Withdraw column, and see what happens . . .
And, just to keep pointing out risks, if you retired with $1MM in 2005 but left it in stocks and lost 40% then panicked and sold at the bottom in 2009 . . .
