Am I on track? Retirement income-gap calculator
Turn your savings plan into a projected annual retirement income—and see the size of any shortfall or surplus.
Your retirement picture
Use today’s dollars for income estimates. Nothing is calculated until you choose Calculate.
Method
The projection adds two future values: the growth of your current savings and the growth of your yearly contributions over the years until retirement. Contributions are modeled as monthly contribution × 12 and compounded annually at the after-inflation (real) return you enter. Using a real return keeps the projection and your income target in today’s dollars.
Estimated portfolio income uses the 4% rule: 4% of the projected nest egg in the first retirement year. Social Security is then added to estimate total annual income.
If there is a shortfall, the calculator converts that missing annual income into the nest egg needed at a 4% withdrawal rate, then estimates the extra monthly savings required to build it by retirement. That amount is on top of your current contribution.
What is excluded
- Inflation effects beyond the after-inflation return and today’s-dollars framing
- Taxes on retirement-account withdrawals
- Future Social Security benefit changes
- Pensions and part-time work income
- Health-care and long-term-care costs
- Market volatility and sequence-of-returns risk