Retirement Gap Calculator

Last updated July 2, 2026

A retirement gap is the difference between the income you'll need in retirement and the income your assets and benefits are projected to generate. Identifying it — and quantifying it in monthly and annual dollar terms — is the foundation of any actionable retirement plan. For many households the gap is real: Vanguard's How America Saves research consistently finds that median 401(k) balances at retirement age fall well short of what would be needed to sustain even modest spending without Social Security playing a central role.

The gap calculation requires honest estimates on both sides. On the spending side: total expected annual retirement expenses, including housing, healthcare, food, transportation, insurance, and discretionary spending. On the income side: Social Security projections from ssa.gov, any pension benefit, expected portfolio withdrawals at a sustainable rate (typically 3.5 to 4 percent for a 30-year retirement), and any other recurring income. The gap between those totals is the problem to solve. Solutions range from increasing savings before retirement, to delaying the retirement date, to identifying expense reductions that make the income side sufficient. Knowing the gap specifically — not vaguely — is what makes the right solution identifiable.

A retirement gap isn't a judgment — it's information. Calculate both sides of the retirement income equation as accurately as possible, identify the monthly shortfall, and then work through the levers available to close it: save more, retire later, spend less, delay Social Security, or some combination. The gap number tells you how hard each lever has to work.