What is a retirement income gap?
Your retirement income gap is the difference between your essential monthly bills and the guaranteed income you can count on, such as Social Security and a pension.
How to calculate it
- Add up essential monthly bills: housing, food, utilities, insurance, healthcare, transportation.
- Add up guaranteed monthly income: Social Security, pensions, any existing annuity income.
- Subtract income from bills. A positive number is your monthly gap.
The free Retirement Gap Check does this in about a minute.
Ways to close the gap
- Delay Social Security for a larger benefit.
- Work part-time for a few years.
- Reduce fixed expenses.
- Turn part of your savings into guaranteed lifetime income with an annuity.
- Plan withdrawals from savings carefully.
Why cover essentials with guaranteed income?
Many retirees prefer that their must-pay bills are covered by income that does not depend on the stock market, and use savings for everything else. Learn how guaranteed lifetime income works.
See your own guaranteed income number
Enter your age, state, amount, and start age to get a live quote in about 30 seconds. One of our licensed advisors can walk you through the details. No pressure.
Show my guaranteed incomeFAQ
What is a retirement income gap?
It is your essential monthly bills minus your guaranteed monthly income such as Social Security and pensions. If bills are higher, the difference is your gap.
How do I close a retirement income gap?
Common options are delaying Social Security, working longer, cutting fixed costs, careful savings withdrawals, or using part of your savings for guaranteed lifetime income. One of our licensed advisors can help you compare.
Should guaranteed income cover my whole gap?
Not necessarily. Many people cover essential bills with guaranteed income and keep the rest of their savings flexible for emergencies and extras.