Retirement Income Gap
Calculator
Results
- Annual income gap
- 18,000
- Monthly income gap
- 1,500
- Share of spending covered by income (%)
- 70
Retirement planning results
| Annual income gap | 18,000 |
| Monthly income gap | 1,500 |
| Share of spending covered by income (%) | 70 |
formula-map diagram
- Annual income gap
- 18,000
- Monthly income gap
- 1,500
- Share of spending covered by income (%)
- 70
Retirement planning relationship
Formula
Gap = spending - income= 18000
Note
This is not financial advice. It is a simplified model: it applies the displayed standard formula to the figures you entered, assumes a single constant rate for every year, and ignores taxes, fees, sequence-of-returns risk, health costs, longevity risk and any country's specific pension, benefit or minimum-distribution rules. Real returns can be negative and real retirements rarely follow a smooth curve. Check the assumptions and consult a licensed adviser before acting on any figure.
More in Retirement planning
See all →Frequently asked questions
What does the retirement income gap show?+
It's the difference between your expected retirement income (pensions, government benefits, planned withdrawals) and your expected retirement expenses; a positive gap means a shortfall you need to fund, while a negative gap (surplus) means your income exceeds your planned spending.
What are common ways to close a projected income gap?+
Typical options include increasing savings before retirement, delaying retirement to allow more accumulation and fewer drawdown years, adjusting planned spending downward, taking on part-time or bridge income, or reconsidering the withdrawal rate or asset allocation to boost expected income.
Should the expense side include one-time costs like home repairs or travel?+
Ideally yes, at least as an average annualized estimate — leaving out irregular but predictable costs (major home repairs, vehicle replacement, periodic large trips) understates true retirement spending and can make the gap look smaller than it really is.
Does this calculation account for taxes on withdrawals?+
Not unless you build tax costs into your income and expense estimates yourself — since withdrawals from tax-deferred accounts are taxed as income, the after-tax income available to cover expenses is lower than the gross withdrawal amount, so ignoring this will understate the true gap.
Is a small gap something to worry about?+
A small, one-time gap may be manageable through modest spending adjustments or short-term savings, but a gap that persists or grows over a multi-decade retirement projection is a stronger signal that either savings, income sources, or planned spending need to be revisited before retiring.