Retirement Income Gap Calculator
Enter your retirement income sources and spending needs to see if — and for how long — your portfolio covers the gap.
How would you like to start?
Use the calculator independently, or prefill compatible information from one of your saved retirement plans.
Your retirement income picture
Total annual expenses: housing, food, healthcare, travel, etc.
Your estimated monthly SS benefit at your claiming age.
Include any defined-benefit pension payments.
Rental, dividends, part-time work, annuity, or other.
Total investable assets: 401(k), IRA, brokerage, etc.
Expected annual return on the portfolio, net of fees. The projection is in nominal dollars — your spending gap grows separately at the inflation rate below.
How much your annual spending will grow each year.
What is a retirement income gap?
A retirement income gap is the difference between your guaranteed income (Social Security, pension, annuity) and your total annual spending needs. If your guaranteed income doesn't cover all expenses, you must draw from your savings to fill the gap.
Why the gap matters
Guaranteed income is inflation-resistant and lasts for life. Portfolio withdrawals are subject to market risk and can run out. A large income gap means heavier reliance on your portfolio — and greater exposure to sequence of returns risk.
The 4% rule and your gap
Financial research suggests withdrawing 4% or less from your portfolio each year gives a high probability of lasting 30 years. If your gap withdrawal rate exceeds 4%, consider strategies to increase guaranteed income or reduce spending. Use the safe withdrawal rate calculator to model different scenarios.
See the Retirement Income Gap methodology for the gap formula, the nominal-return convention, and the depletion test.