Retirement Income Gap Calculator
Retirement Income Gap
Calculate the gap between your expected retirement expenses and projected income sources to determine how much additional savings you need.
Formula
Monthly Gap = Monthly Expenses - (Social Security + Pension + Other Income); Annual Gap = Monthly Gap x 12; Total Gap = Annual Gap x Years in Retirement
Frequently Asked Questions
What is a retirement income gap?
A retirement income gap is the difference between your expected monthly expenses and guaranteed income sources like Social Security and pensions. This gap must be filled by savings withdrawals, investments, or other means.
How much should I plan for retirement expenses?
A common guideline is to plan for 70 to 80 percent of your pre-retirement income, but actual needs vary. Healthcare, travel, and hobbies may increase costs, while reduced commuting and work expenses may lower them.
How can I close my retirement income gap?
Options include saving more aggressively, delaying retirement, working part-time, reducing planned expenses, investing for growth, purchasing an annuity, or downsizing your home to free up equity.
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