Retirement income gap calculator

The gap is the honest starting point. Most people find it is smaller than they feared, because Social Security and a pension already cover a good share of the monthly total. Whatever remains is the number your savings have to produce, month after month, for as long as you need it.

The capital figure answers the next question: how much money, working at a given estimated yield, would produce exactly that monthly income for exactly that many years. A higher estimated yield needs less capital, and so does a later start date. Both effects are the same discount at work, and both come with their own trade-offs — a higher estimated yield usually means a longer commitment or a payment stream with more moving parts, and a later start means living on your other income in the meantime.

Once you have a number, the secondary market annuity calculator works the other direction: enter a real price and a real payment schedule and it returns the effective estimated yield and the weighted average life. For a gap you would rather cover in stages, the income ladder builder spreads the same income across several maturities. You can also read how payment streams fit a retirement income plan or browse available income options.