Your retirement income gap is the difference between what you want to spend each month and what your known income sources are expected to provide.
The simple formula
Desired monthly income minus estimated monthly income equals your retirement income gap.
Example: If you want $10,000 per month and expect $6,800 from FERS, Social Security, and other sources, your estimated gap is $3,200 per month.
Common income sources
- FERS basic annuity
- TSP withdrawals
- Social Security
- Military retirement
- Brokerage withdrawals
- Roth IRA withdrawals
- Pensions, rentals, or other income
Planner tip
The gap is not automatically bad. It simply tells you what your savings, investments, delayed retirement, contribution increases, or reduced spending need to solve.