Retirement Gap Calculator

Projected corpus = current savings + contributions grown at your real return. Required corpus = (desired income − other income, grossed up for tax) ÷ safe withdrawal rate, plus any legacy or one-off costs. Gap = required − projected; the fixes solve the extra saving, later age, or lower expenses that bring them level.

Two numbers, one gap

Retirement readiness comes down to two figures. The projected corpus is what your current savings and contributions will grow into by your retirement age, at your return after inflation. The required corpus is what you’ll actually need — your desired income (less any pension or Social Security, grossed up for tax) divided by a safe withdrawal rate, so a 4% rate means 25 times the income your savings must provide. The gap between them, shown in today’s money, tells you whether you’re ahead or behind — and the income gap shows the same story as an annual figure.

Worked example — age 35, $100k saved, $1,000/month, 7% return, wanting $50,000 a year: You’re projected to have about $1,082,000, but need roughly $1,250,000 — a shortfall of around $168,000. In income terms, your savings would support about $43,300 a year against the $50,000 you want.

Three ways to close it

A shortfall isn’t a verdict — it’s a to-do list, and there are three levers. Save more: the calculator solves the extra monthly contribution that, grown to retirement, exactly fills the gap. Retire later: each additional year adds contributions and growth, so it finds the age at which your current plan catches up. Or spend less: it shows the income your projected savings already support, which is the expense level that makes the gap disappear. Most people use a blend of all three.

Reading it right

Everything is in today’s money, so the figures are directly comparable to what you earn and spend now. Other income is the biggest mover of the required number — a pension that covers part of your spending sharply cuts the corpus you need. A surplus means you’re on track (and could retire earlier, spend more, or de-risk). As with every projection here, it assumes a steady real return and ignores sequence-of-returns risk, so treat a small surplus as “on track, keep checking” rather than “done.”