Retirement Income Gap Calculator

Use the Retirement Income Gap Calculator

Your results

Total expected non-portfolio income: $0.00
Annual income gap: $0.00
Portfolio withdrawal supported: $0.00
Surplus or shortfall: $0.00

How this calculator works

What it does: Compare your expected retirement income sources and portfolio withdrawals with your desired annual retirement income.
Inputs used: The estimate uses desired annual retirement income, expected social security income, pension income, rental income, dividend income, other passive income, portfolio value, and withdrawal rate (%).
Calculation approach: The calculator applies the relationships defined for the retirement income gap calculator to those inputs and updates total expected non-portfolio income, annual income gap, portfolio withdrawal supported, and surplus or shortfall.
How to read the result: Treat the result as a scenario based on the values entered. Compare a few reasonable inputs and consider costs, taxes, timing, or risks that the calculator does not include.

How to Use This Calculator

Enter Desired annual retirement income, Expected Social Security income, and Pension income using values that match the scenario you want to evaluate.
Enter Rental income, Dividend income, and Other passive income using values that match the scenario you want to evaluate.
Enter Portfolio value and Withdrawal rate (%) using values that match the scenario you want to evaluate.
Review the assumptions for the retirement income gap calculator, especially rates, time periods, and optional amounts.
Select Calculate to update the results, then adjust one input at a time to compare scenarios.

Understanding the Results

Total expected non-portfolio income: The total expected non-portfolio income estimated by the Retirement Income Gap Calculator using desired annual retirement income, expected social security income, and pension income and the other values entered.
Annual income gap: The difference between the current position and the calculated target or comparison value.
Portfolio withdrawal supported: The portfolio withdrawal supported estimated by the Retirement Income Gap Calculator using desired annual retirement income, expected social security income, and pension income and the other values entered.
Surplus or shortfall: The difference between the current position and the calculated target or comparison value.

Common Mistakes

Treating a constant return or withdrawal rate as a guaranteed outcome.
Leaving out inflation, taxes, fees, healthcare, or irregular retirement expenses.
Using current spending without considering how expenses may change later.
Relying on one scenario instead of testing more cautious assumptions.

Worked Example

Example inputs

Desired annual retirement income: $80,000
Expected Social Security income: $24,000
Portfolio value: $1,000,000
Withdrawal rate (%): 4%

Example results

Total expected non-portfolio income: $24,000.00
Annual income gap: $56,000.00
Portfolio withdrawal supported: $40,000.00
Surplus or shortfall: Shortfall: $16,000.00

For this illustrative scenario, the total expected non-portfolio income is $24,000.00. Changing any input can materially change the result, so use the example as a walkthrough rather than a guarantee.

Frequently asked questions

What is a retirement income gap?

A retirement income gap is the difference between your desired annual retirement income and income expected from sources outside your investment portfolio.

Which retirement income sources should I include?

Include reliable estimates for Social Security, pensions, rental income, dividends, annuities, and other passive income. Use after-tax amounts when that better matches your spending goal.

How is portfolio-supported income calculated?

The calculator multiplies portfolio value by your selected withdrawal rate. A $1 million portfolio at 4% supports an estimated $40,000 annual withdrawal.

What does a shortfall mean?

A shortfall means expected non-portfolio income plus the selected portfolio withdrawal does not fully cover the desired annual retirement income.

Does this calculator account for inflation or taxes?

No. It is a one-year planning snapshot. Revisit income and spending estimates for inflation, taxes, benefit changes, investment fees, and changing withdrawal needs.

What does the Retirement Income Gap Calculator calculate?

Compare your expected retirement income sources and portfolio withdrawals with your desired annual retirement income. The result is based only on the inputs and assumptions shown on the page.

How should I interpret the surplus or shortfall from the Retirement Income Gap Calculator?

Use it as an estimate for the scenario entered, not as a guarantee or personal recommendation. Test changes to desired annual retirement income, expected social security income, and pension income to see which assumptions have the greatest effect.