Free Retirement Income Gap Calculator
Calculate the gap between your expected retirement income and spending needs to determine how much savings you need.
Annual Income Needed
$64,000
Annual Income Needed vs Income Replacement Target
Retirement Income Gap
Gap = Income Needed - Social Security - Pension
Savings Required = Gap x 25 (4% Rule)
The 4% rule suggests you can safely withdraw 4% of your portfolio annually, so you need 25x your annual gap in savings.
Income Replacement
Most advisors suggest replacing 70-85% of pre-retirement income. You may need less (no payroll taxes, commuting costs) or more (healthcare, travel).
Example Calculation
$80,000 income, 80% replacement, $24,000 SS, no pension.
- 01Income needed = $80,000 x 80% = $64,000
- 02Guaranteed = $24,000 (SS)
- 03Gap = $64,000 - $24,000 = $40,000/year
- 04Savings needed = $40,000 x 25 = $1,000,000
Frequently Asked Questions
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