Retirement Income Gap Calculator

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

By Konstantin Iakovlev · Updated April 2026 · Source: IRS

$
$
$
$
$
%

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 2026, the average Social Security benefit for a retired worker is projected to land around $1,970 per month, which underscores why nearly everyone needs additional income streams to close the distance.

The math is deliberately simple: your total guaranteed monthly income is subtracted from the monthly income you want in retirement. Written out, that is Desired Monthly Retirement Income minus the sum of your Estimated Monthly Social Security Benefit and Estimated Monthly Pension Income, with the difference being your Retirement Income Gap. The result is a clear dollar figure showing how much you must generate each month from personal savings or investments.

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 Let's consider Sarah, who desires a monthly retirement income of $5,000. She estimates her individual Social Security benefit in 2026 to be $2,200 per month and anticipates a pension payment of $1,000 per month.
  2. 2 First, we sum her guaranteed income: $2,200 (Social Security) + $1,000 (Pension) = $3,200 per month. Next, we subtract this from her desired income: $5,000 (Desired) - $3,200 (Guaranteed) = $1,800.
  3. 3 Sarah's Retirement Income Gap is $1,800 per month. This means she needs to generate an additional $1,800 monthly from her personal savings, investments, or other income sources to meet her desired retirement lifestyle.
  4. 4 This $1,800 gap can be addressed through various strategies, such as increasing her contributions to an IRA or 401(k), investing in income-generating assets, or even considering a part-time job during early retirement. Understanding this specific amount empowers Sarah to create a targeted financial plan to bridge her income needs.

Source: IRS · Last updated: April 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 (increases benefit by 24-32%), working 2-3 extra years, reducing planned retirement spending, purchasing an annuity for guaranteed income, or planning for part-time work in early retirement.

You might also need

401(k) Calculator 2026 — Retirement Savings & Employer Match

Calculate your 401(k) balance at retirement with employer match and growth projections. Compare Roth vs Traditional. Based on 2026 IRS contribution limits.

Roth IRA Calculator 2026 — Growth, Limits & Tax-Free Income

Calculate Roth IRA growth projections and tax-free withdrawals. Compare to Traditional IRA side by side. Free, instant results with 2026 contribution limits.

Roth Conversion Calculator 2026 — Tax Impact & Break-Even

Calculate the tax impact of converting a Traditional IRA to Roth. See your break-even year and multi-year projections. Free, instant results for 2026 rates.