Money Tools

Retirement Income Gap Calculator

Estimate the gap between desired retirement income and projected monthly income sources.

Updated April 17, 2026
Free online tool
Planning and research use

Why this page exists

Retirement planning gets clearer when the desired monthly income target is compared directly against expected Social Security, pension, and withdrawal income instead of being reviewed as separate numbers. This calculator helps visitors estimate the monthly and annual gap between desired retirement income and projected income sources.

Interactive tool

Run the estimate

Enter your numbers and read the result first, then use the sections below to understand what affects the outcome.

Calculator

Retirement income gap calculator

Estimate the monthly and annual gap between desired retirement income and projected income sources.

Result

Gap $850

Estimated gap or surplus between desired monthly retirement income and the projected income sources entered.

Monthly income gap or surplusGap $850

Total projected monthly retirement income$5,650

Annual gap or surplusGap $10,200

Desired monthly income used$6,500

$5,650 of projected monthly retirement income compared with a target of $6,500 leaves a gap of about $850.
On an annual basis, that works out to about $10,200 of gap in this simple planning view.
Use this as a starting estimate only, then refine it with taxes, inflation, spending changes, and a fuller retirement plan.

This is a simple planning estimate only. Actual retirement income can change with taxes, benefit timing, portfolio performance, inflation, and withdrawal strategy.

Planning note

Last updated April 17, 2026. Use this tool to compare scenarios and plan ahead, then confirm important details with the lender, employer, insurer, contractor, or other qualified provider involved in the final decision.

How it works

What the calculator is doing

Enter the monthly retirement income you want to have available.

Add the monthly income you expect from Social Security, pension income, investment withdrawals, and any other recurring source.

The calculator totals the projected income and compares it with the desired amount to show a monthly and annual gap or surplus.

Understanding your result

This is a simple planning estimate only. It can help show whether projected retirement income appears short or sufficient, but taxes, inflation, healthcare, withdrawal strategy, and benefit timing still matter.

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Examples

Ways people use this tool

Example scenarios help turn a quick estimate into a more useful comparison or planning step.

Check whether current projections cover the desired lifestyle

A gap estimate can show whether the current mix of retirement income sources still falls short of the monthly goal.

See how much a pension or Social Security claim changes the gap

Changing one income source can show how sensitive the total retirement picture is to a single decision.

Translate a monthly shortfall into an annual planning number

Seeing the annual gap can make a modest monthly shortfall feel more concrete in planning discussions.

When to use it

Good times to run this calculator

Use this when you want a quick read on whether projected retirement income appears to match the monthly lifestyle target you have in mind.

It is especially useful when you are comparing different retirement-income assumptions before doing a deeper plan review.

Assumptions and limitations

The estimate assumes the monthly income figures entered are realistic and can be compared directly on the same monthly basis.

It does not adjust for taxes, inflation, healthcare costs, sequence risk, or future changes in spending needs.

Common mistakes

Avoid the usual input mistakes

Using gross or optimistic income assumptions can make the retirement gap look smaller than the real spending gap may be.

Treating one monthly gap number as permanent can hide how the picture changes over time as benefits begin, expenses shift, or withdrawals change.

Practical tips

Run the calculator with conservative income assumptions first so the result is more useful as a planning floor than a best-case scenario.

Compare the monthly result with the annual gap so it is easier to judge whether the shortfall is small enough to solve with saving, delaying retirement, or spending changes.

Worked example

Walk through a realistic scenario

A worked example shows how the estimate behaves when the inputs resemble a real planning decision.

Estimate a retirement income shortfall

A household wants $6,500 per month in retirement and expects $2,400 from Social Security, $1,200 from a pension, $1,800 from withdrawals, and $250 from other income.

1. Enter the desired monthly retirement income and each projected income source.

2. Total the projected monthly income.

3. Compare the projection with the desired amount to find the monthly and annual gap or surplus.

Takeaway: The result helps turn several separate income assumptions into one cleaner shortfall or surplus estimate for planning.

FAQ

Common questions

What income sources should I include?

Include the sources you expect to rely on in retirement, such as Social Security, pension income, investment withdrawals, and any other recurring monthly income.

What if the result shows a surplus instead of a gap?

That means the projected income sources entered are higher than the desired monthly retirement income in this simple estimate.

Does this replace a full retirement plan?

No. It is a simple income-gap estimate and does not replace a full plan covering taxes, inflation, longevity, healthcare, and withdrawal strategy.

Related tools

Keep comparing

Retirement-savings, withdrawal, RMD, and annuity tools help show how the gap estimate connects to the broader retirement-income plan.

Budget and inflation tools can add context if the real challenge is refining the monthly spending target rather than only estimating income.

Money ToolsUpdated April 11, 2026