What is a pension gap?

The pension gap is the difference between what Social Security will pay and what you want to live on in retirement. If SS pays $2,100/month and you want $4,000/month, your gap is $1,900/month. You need savings to fill this gap.

How much should I save for retirement?

It depends on your gap. Use the 'How to Close the Gap' tab with your specific numbers. As a rule of thumb, financial advisors recommend saving 10-15% of income starting in your 20s, or 20-25% if you start in your 30s.

Can I retire before 67?

Yes, but it's expensive. You won't receive Social Security until 62 (at a reduced rate), so you need a 'bridge fund' to cover expenses between early retirement and 62. The 'Retire Earlier' tab calculates exactly how much more you need.

Retirement & Pension Gap Calculator

Q: How much will Social Security pay me?

Social Security replaces roughly 40% of average income. The maximum benefit in 2026 is about $4,500/month. Your actual amount depends on your 35 highest-earning years. This calculator estimates your benefit based on current salary.

You'll be $1,200/month short in retirement. See the scary number — and what to do about it.

Will Social Security be enough?

Current age

years

Annual salary

Desired monthly retirement income

$/mo

Current retirement savings

Expected return

%/yr

Planned retirement age

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How to Use This Calculator

My Pension Gap tab

Enter your age, salary, desired monthly retirement income, and current retirement savings. The calculator estimates your Social Security benefit and shows the monthly gap — how much you'll be short. It also shows how much you need to save monthly to close the gap by retirement.

How to Close the Gap tab

Enter your current monthly savings (401k + IRA contributions). See whether you're on track: projected nest egg at 67 vs. needed amount. If you're short, it shows how much to reduce your desired income to match your projected savings.

Retire Earlier tab

Set a target retirement age before 67. See the extra cost: you need a "bridge fund" for years without Social Security (before age 62), plus a larger nest egg. The monthly savings jump can be dramatic — but now you know the number.

The Formula

Pension Gap = Desired Monthly Income − Estimated Social Security
Nest Egg Needed = Annual Gap ÷ 4% (safe withdrawal rate)
Monthly Savings = (Nest Egg − FV of Current Savings) × r ÷ ((1+r)^n − 1)

Social Security estimates use a simplified version of the PIA (Primary Insurance Amount) formula based on your current salary. Actual amounts depend on your 35 highest-earning years.

Example

Michael — Age 35, $75K salary

Wants $4,000/month in retirement. Has $30,000 saved in his 401k.

Estimated Social Security$2,100/mo

Monthly gap$1,900/mo

Nest egg needed$570,000

Monthly savings required$530/mo

Michael then tried the Retire Earlier tab with age 60. Bridge fund (7 years without SS): $336,000. Total needed: $738,000. Monthly savings: $1,120/mo. He decided 62 was more realistic — $780/mo. He shared the link with his wife: "This is why we need to max out the 401k."

FAQ

How much will Social Security pay me?▼

It depends on your 35 highest-earning years. The calculator estimates based on current salary: ~40% replacement rate for average earners, less for high earners (the formula is progressive). Maximum benefit in 2026 is ~$4,500/month. Check ssa.gov for your personalized estimate.

What if Social Security benefits are reduced?▼

The Social Security trust fund may face shortfalls in the 2030s. Benefits could be reduced by ~20-25% if Congress doesn't act. To plan conservatively, reduce the estimated SS benefit by 25% and recalculate. Your savings gap will increase — which means you need to save more now.

Can I get Social Security before 67?▼

You can claim at 62, but benefits are reduced by ~30% permanently. The Retire Earlier tab accounts for this: it uses 70% of your full benefit when calculating gaps for ages 62-66.

What about 401k and IRA?▼

Your 401k, IRA, and other retirement savings are what fill the pension gap. The calculator treats them as a pool that generates income via the 4% withdrawal rule. Enter your total retirement savings (all accounts combined) for an accurate picture.

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