Retirement Income Gap Calculator

Calculate the gap between desired retirement income and guaranteed sources (SS, pension).

By Konstantin Iakovlev · Updated September 2026 · Source: SSA — 2026 Social Security Changes (COLA fact sheet)

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Annual Income Gap

$56,000.00

Savings Needed (4% Rule)

$1,400,000.00

Projected Savings

$689,757.89

Income Sources

Desired Retirement Income$80,000.00
Social Security$24,000.00
Pension$0.00
Other Income$0.00
Guaranteed Income Total$24,000.00
Income Gap$56,000.00

Savings Analysis

Savings Needed to Fill Gap$1,400,000.00
Projected Savings at Retirement$689,757.89
Shortfall$710,242.11
Monthly Savings Needed to Close Gap$2,240.78

Use the Retirement Income Gap Calculator above to calculate your results. Enter your values and see instant results — all calculations run in your browser.

Disclaimer: This calculator is for informational purposes only and does not constitute tax, financial, or legal advice. Results are estimates based on the information you provide and current rates. Always consult a qualified tax professional or financial advisor for advice specific to your situation.

How It Works

The distance between the retirement income you want and what your guaranteed sources will actually deliver is the single number that drives smart planning, and this tool measures it. Guaranteed income usually means Social Security and any pension, and for most people those checks fall short of the target. In January 2026, the average Social Security benefit for a retired worker was $2,071 per month, which underscores why nearly everyone needs additional income streams to close the distance.

The math is deliberately simple and works in annual amounts: your Social Security, pension and any other guaranteed income are added up and subtracted from the income you want each year in retirement, and the difference is your Retirement Income Gap. The tool then sizes the savings needed to fill it with the 4% rule (the gap divided by 0.04), grows your current savings at your expected return until retirement, and, if that falls short, shows the monthly saving that would close the shortfall by then.

Honesty about your target matters in both directions, since aiming too high sets up disappointment while aiming too low can leave you stretched once you stop working. Inflation is easy to overlook yet decisive, because the purchasing power of today's desired income will not be the same years from now. Double-check that your pension estimates are sound, and weigh any spousal Social Security benefits you may qualify for before settling on a final figure.

Example: Bridging the Income Gap

  1. 1 Sarah wants $60,000 a year in retirement ($5,000 a month). She expects $26,400 a year from Social Security ($2,200 a month) and $12,000 from a pension ($1,000 a month). She has $150,000 saved, retires in 15 years and assumes a 7% return.
  2. 2 Guaranteed income: $26,400 + $12,000 = $38,400. Gap: $60,000 − $38,400 = $21,600 a year, or $1,800 a month to come from savings.
  3. 3 Savings needed under the 4% rule: $21,600 ÷ 0.04 = $540,000. Her current savings grow to $150,000 × 1.07^15 = $150,000 × 2.759032 = $413,855 by retirement.
  4. 4 Shortfall: $540,000 − $413,855 = $126,145. Saving about $398 a month for the next 15 years at 7% would cover it; working longer, spending less or adding guaranteed income would shrink the gap instead.

Source: SSA — 2026 Social Security Changes (COLA fact sheet) · Last updated: September 2026

Frequently Asked Questions

What is the retirement income gap?
The retirement income gap is the difference between your desired retirement income and your guaranteed income sources (Social Security, pensions, annuities). If you want $70,000/year and Social Security provides $30,000, your gap is $40,000/year, which must come from savings and investments.
How much savings do I need to fill my income gap?
Multiply your annual gap by 25 (using the 4% rule). A $40,000 annual gap requires approximately $1,000,000 in retirement savings. A more conservative 3.5% withdrawal rate would require $1,143,000. The exact amount depends on your expected retirement length and investment mix.
How can I close my retirement income gap?
Strategies include: increasing retirement savings rate, delaying Social Security to age 70 (8% a year past full retirement age, so 24% from 67 to 70 for anyone born in 1960 or later), working 2-3 extra years, reducing planned retirement spending, purchasing an annuity for guaranteed income, or planning for part-time work in early retirement.

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