How to Use the Retirement Income Gap Calculator

Start with a monthly income goal

The quick estimate begins with the monthly retirement income you would like to have available. This is a goal you enter; the calculator does not determine your spending or declare a specific amount sufficient. You can base the goal on a retirement budget you prepared separately.

Decide whether your amounts are before tax or after tax, then use the same basis for the goal and every income source. Enter figures in today’s dollars. The calculator has no household-size field, so couples can use combined household amounts and should make sure the household income sources align with the household goal.

Gather income estimates

Enter monthly estimates for Social Security, pension payments, income you expect from retirement savings or investments, and other recurring income. Use your own official Social Security estimate and plan statements when available. The calculator does not fetch those figures or adjust them for you. Count each source once.

For a benefit estimate, use the Social Security Administration’s benefit estimate. A pension statement or plan administrator can help clarify payment options, survivor choices, and whether the estimate changes over time.

Run the estimate and read every line

Choose Calculate My Retirement Income Gap. The result shows the income goal you entered, your combined estimated monthly income, and the difference. The calculator displays a nonnegative monthly gap when the goal is higher. If income is higher than the goal, it shows a zero gap and a separate estimated surplus. The annual gap is the monthly gap multiplied by 12; it is not the amount of savings required to fund an entire retirement.

Correct an input by editing its field. The result updates while you work and your entries remain on the page. Use Reset only when you want to clear all entries. Print / Save Summary as PDF creates a copy on your device that contains the information you entered.

Optional savings estimate

The detailed section estimates a future balance using your current retirement savings, monthly contribution, years until the planned retirement age, and an editable annual real-return assumption. Its default return is 3% after inflation, and its default annual withdrawal assumption is 4%. These are sample settings, not forecasts or recommendations. You may edit them or leave the detailed section unused.

If you select the checkbox to use the projection, its estimated monthly amount replaces the manual savings-income input in the quick comparison. Editing the savings-income field turns that setting off and gives you back control of the manual amount. The detailed estimate uses one age timeline, so it does not combine different retirement dates for two people automatically.

Common input mistakes to avoid

• Mixing annual figures with monthly inputs; convert each amount to monthly first.
• Comparing a before-tax income goal with after-tax sources, or vice versa.
• Mixing today's dollars with future inflated dollars.
• Counting a retirement-account withdrawal in both savings income and other income.
• Assuming the output includes expenses, health-care costs, taxes, or a full retirement plan. It compares the goal and income amounts you provide.

For a closer look at the formulas, see the methodology and limitations. For arithmetic examples, see worked retirement income examples.