How to Build a 40-Year Retirement Plan in Google Sheets

Quick answer. A 40-year retirement plan in Google Sheets needs three sections: an Inputs sheet for current age, balances, and assumptions; a Projections sheet that compounds your accounts year by year through retirement; and a Withdrawal sheet that draws down the balance at retirement. The core formula is EndingBalance = (BeginningBalance + Contributions) * (1 + ReturnRate) - Withdrawals, applied year by year for 40 rows. Our Retirement Financial Planning Projections template is built this way.

In this article

• The three sheets a complete retirement plan needs
• Inputs that actually matter (and which are noise)
• The compound-growth formula written cell-by-cell
• The withdrawal-phase formula and how the 4 percent rule plugs in
• How to add Social Security, pensions, and one-time events
• A worked example: 35 year old, $80,000 income, retiring at 65
• Common mistakes and what to do instead

This is a long post. If you’d rather skip building from scratch, the Retirement Financial Planning Projections template ($49 once) ships with the formulas in place. If you want to build it yourself, every section below is what to put in each cell.

The three sheets

A complete retirement plan in a spreadsheet needs three connected sheets. Calling them anything is fine; we use these names.

Inputs. All your assumptions and balances live here. Nothing on the other sheets gets edited; they read from Inputs. This means changing a single number (retirement age, expected return, contribution rate) re-runs the entire projection without breaking formulas.

Projections. A year-by-year grid covering accumulation (today through retirement) and withdrawal (retirement through end of plan). 40 rows for a 40-year plan, plus a row per account type.

Dashboard. Charts and summary numbers that read from Projections. End balance at retirement. Years of expenses covered. Probability of running out (if you add Monte Carlo, but a deterministic plan is fine for most people).

Three tabs, each does one thing, no formulas crossing back into Inputs. Keep it that way; the alternative is a fragile workbook that breaks the next time you tweak an assumption.

The Inputs sheet

The honest list of what matters. Twelve cells.

Sixteen cells. That’s the entire input set. Everything else is calculated.

You’ll notice we separate accounts by tax treatment. Taxable, tax-deferred, and Roth grow the same way pre-retirement but withdraw differently. If you don’t want that level of detail, collapse them into one balance. The formulas are the same shape; the dashboard loses some nuance.

The Projections sheet

This is where the math happens. Rows are years; columns are account balances and totals.

Header row (row 1): Year, Age, Taxable Balance, Tax-Deferred Balance, Roth Balance, Total Balance, Annual Contribution, Annual Withdrawal.

Row 2 (year 0, today): Reads starting balances from Inputs.

• A2 = current year (e.g., 2026)
• B2 = =Inputs!B1 (current age)
• C2 = =Inputs!B6 (taxable starting)
• D2 = =Inputs!B7 (tax-deferred starting)
• E2 = =Inputs!B8 (Roth starting)
• F2 = =C2+D2+E2
• G2 = 0
• H2 = 0

Row 3 (year 1): First year of projection.

• A3 = =A2+1
• B3 = =B2+1
• C3 = =IF(B3<Inputs!$B$2, C2*(1+Inputs!$B$13)+Inputs!$B$9, IF(B3<Inputs!$B$3, C2*(1+Inputs!$B$13)-WithdrawalFromTaxable, 0))

That last formula is the meat. Translated: “If we’re still in accumulation (age below retirement age), grow last year’s balance by the expected return and add this year’s contribution. If we’re in retirement, grow last year’s balance by the expected return and subtract this year’s withdrawal from taxable. If we’re past end of plan, zero out.”

The same logic applies to D3 (tax-deferred) and E3 (Roth) with their own contribution and withdrawal cells. F3 sums them. G3 reports total contributions for the year. H3 reports total withdrawals.

Then drag rows 3 down to row 62 (or wherever year 60 lands). Forty plus years of projections, computed automatically.

The withdrawal formula

The 4 percent rule (or whatever rate you use) is just a starting withdrawal. Each year’s withdrawal is the prior year’s withdrawal grown by inflation:

Withdrawal_year_n = Withdrawal_year_n-1 * (1 + InflationRate)

The first withdrawal is your target retirement spending (Inputs!B15). Each subsequent year grows by inflation.

So if your starting retirement spending is $60,000 in today’s dollars and inflation is 3 percent, year 1 of retirement withdraws $60,000, year 2 withdraws $61,800, year 3 withdraws $63,654, and so on.

In the Projections sheet, the Withdrawal cell (H column) for retirement years is:

=IF(B3>=Inputs!$B$2, IF(B3=Inputs!$B$2, Inputs!$B$15, H2*(1+Inputs!$B$14)), 0)

“If retired and it’s the first retirement year, withdraw the target spending. If retired and not the first year, withdraw last year’s amount times one plus inflation. Otherwise zero.”

The order of withdrawals across account types matters for tax efficiency (taxable first, then tax-deferred, then Roth is the common rule). For a basic projection, you can pull from a combined balance and not worry about it. For tax-aware modeling, the Retirement Projections template handles ordering.

Adding Social Security

Social Security is a stream of inflation-adjusted income starting at a chosen age (between 62 and 70). Adding it to the spreadsheet is one column.

Inputs additions:

• B17: Social Security claim age
• B18: Social Security annual benefit (in today’s dollars)

Projections sheet new column (I):

• I3 = =IF(B3>=Inputs!$B$17, Inputs!$B$18*(1+Inputs!$B$14)^(B3-Inputs!$B$17), 0)

That column shows your annual Social Security income, growing with inflation from the claim year forward.

Then update the withdrawal formula in H to subtract Social Security from required spending:

H3 = max(0, target_spending_for_year - I3)

Effect: Social Security covers part of your retirement spending; you draw down portfolio balances only for the gap.

Adding pensions

Same approach. One input cell for pension annual benefit (in today’s dollars), one input for pension start age, one column on Projections sheet that calculates current-year pension income, and an adjustment to the withdrawal formula.

For inflation-adjusted pensions (rare in private sector, common in some public plans), the formula uses (1+InflationRate)^years. For non-inflation-adjusted pensions, the benefit is constant in nominal dollars, which means it loses purchasing power over time. The spreadsheet should reflect that; otherwise you’ll overestimate your future income.

Adding one-time events

Inheritances, home sales, college costs, healthcare emergencies. Treat each as a one-time inflow or outflow on a specific year.

Inputs: A small table with Event Name, Year, Amount (positive for inflow, negative for outflow).

Projections: A new column that looks up the event for each year and adds it to the appropriate balance.

A common one: a $400,000 home sale at age 70 with proceeds rolling into taxable. That’s a single-cell event on the Inputs table; the Projections sheet handles it via lookup.

A worked example

Maya is 35. She’s working in tech, earning $130,000.

Inputs:

• Current age: 35
• Retirement age: 65
• End of plan age: 95
• Taxable balance: $25,000
• Tax-deferred (401k): $95,000
• Roth IRA: $18,000
• Annual contributions: $6,000 taxable, $19,500 tax-deferred, $7,000 Roth
• Employer match: $5,000 (added to tax-deferred)
• Expected real return: 6 percent
• Inflation: 3 percent
• Annual retirement spending: $70,000 (today’s dollars)
• Withdrawal rate: 4 percent
• Social Security: $36,000 starting at 67

Projection result at age 65:

Years of expenses covered: 43 years at $70,000/yr (with inflation), assuming 6 percent real continued growth and Social Security from 67. Plan succeeds well past age 95.

What happens if return drops to 4 percent real? Total at 65 falls to $2,180,000. Years covered drops to 31. Plan still reaches mid-90s. Tight but not failed.

What happens if she retires at 60 instead? Total at 60 is $2,290,000. Years covered drops to 35 because she has 5 fewer years of accumulation and 5 more years of withdrawal. Plan reaches mid-90s. Still works.

These three “what if” scenarios are the main reason to have the spreadsheet. The base case answer is rarely the interesting one; the sensitivity to one or two changes is what informs decisions.

Common mistakes

Mixing nominal and real returns. Pick one. Real returns (after inflation) with target spending in today’s dollars is the cleaner approach because the withdrawals stay constant in real terms. Nominal returns with inflation-adjusted withdrawals also works but is harder to read.

Assuming the same return rate for all account types. Fine for a base case. If you have a conservative bond-heavy taxable account and an aggressive stock-heavy retirement account, separate the assumptions; the projection changes meaningfully.

Forgetting the employer match. Free money that compounds for 30 years. Don’t leave it out.

Using too high a return assumption. 7 percent real is the long-run US stock market average; 10 percent nominal. Many people plug in 10 percent real, which produces a fantasy projection. Stick with 5 to 7 percent real for a base case; run a 4 percent scenario for a stress test.

Ignoring sequence-of-returns risk. The deterministic projection assumes a smooth return. Real markets aren’t smooth. A bad first decade in retirement is more damaging than a bad last decade because there’s less balance to recover from. The spreadsheet won’t capture this; only Monte Carlo will. For most people, running a “what if 4 percent return” scenario is a sufficient stress test.

No spending update over time. People assume spending in retirement equals spending now. For most retirees, real spending is lower in 70s and 80s than in 60s (less travel, fewer big purchases) but spikes in late life (healthcare). A constant-spending model is approximate; a phased model is more accurate.

Sensitivity analysis

The most useful pages of the dashboard show what changes when one input moves.

Retirement age: Each year of delay adds roughly 6 to 8 percent to your end balance and reduces required portfolio by 5 percent. Massive lever for late savers.

Savings rate: Each percentage point of income saved adds about 6 percent to retirement balance over a 30-year horizon.

Return assumption: Each 1 percentage point change in real return moves the end balance by 25 to 30 percent. The single biggest uncertainty in any projection.

Spending in retirement: Each $5,000 of annual spending requires roughly $125,000 more in portfolio (4 percent rule). A 10 percent reduction in retirement spending often closes a tighter plan.

The dashboard should show these as sliders or scenarios. The Retirement Projections template has this built in.

Get the template

• Retirement Financial Planning Projections — 40-year accumulation and withdrawal projection with configurable assumptions.
• Retirement Planning Bundle — Retirement Projections plus Net Worth plus Annual Tax Planner.
• Retirement Planning Bundle — Retirement Projections plus Net Worth plus Annual Tax Planner.

Related

• Coast FIRE Calculator Explained: Formula and Three Worked Examples
• ProjectionLab Alternative: Retirement Projections in a Spreadsheet You Can Audit