Retirement Income Gap Calculator
Calculate the gap between your retirement income needs and projected income sources
About this calculator
The Retirement Income Gap Calculator helps you identify the difference between your estimated retirement expenses and your projected income from all sources like Social Security, pensions, and savings. This powerful tool reveals whether you're on track for a comfortable retirement or need to increase your savings rate. By understanding your income gap early, you can make informed decisions about contribution amounts, investment strategies, and retirement timing to ensure financial security in your golden years.
How to use
Enter your expected annual retirement expenses and current age. Input your projected income sources including Social Security benefits, pension payments, and estimated withdrawals from retirement accounts. The calculator will instantly show your income gap and provide insights on additional savings needed to bridge any shortfall.
Frequently asked questions
What income sources should I include in the calculation?
Include Social Security benefits, employer pensions, 401(k)/IRA withdrawals, rental income, part-time work earnings, and any other expected retirement income streams.
How do I estimate my retirement expenses accurately?
Start with your current expenses and adjust for changes like paid-off mortgage, reduced commuting costs, but increased healthcare and leisure spending.
What if my calculator shows a large income gap?
Consider increasing retirement contributions, working longer, reducing expected expenses, or exploring additional income sources like part-time work in retirement.