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of 8:

About you

1

About You

2

Current Income

3

Saving Habits

4

Retirement Income Needs

5

Social Security and Pensions

6

Retirement Savings

7

Other Income

8

Your Results

Results

It’s never too late to give your retirement savings a boost.

Understanding your Income Gap

Your retirement income gap is the difference between the monthly income you'll have in retirement and your estimated monthly income needs based on your current 'take home' pay and savings habits.

${totalMonthlyNeedsText} Estimated
  • ${estimatedMonthlyIncomeText}
    Estimated
  • ${annuitizedText}
    Estimated monthly income from retirement savings
  • ${incomeGapText}
    Your *

How could taxes impact your income in retirement?

This button will reduce your annuitized benefit amount using a 15% tax rate to simulate the effects of income taxes on your benefit. This is for illustrative purposes only. Your actual tax rate may vary.

  • Pre-tax
  • Post-tax

Do you anticipate needing less or more income in retirement?

Your monthly income needs are calculated by looking at your current income and current savings. Your needs could change in retirement. To see how your retirement income gap is impacted if your monthly income needs change, move the blue circle to the left or right.

-30% -20% -10% 0% +10% +20% +30%

How would annuitizing a percentage of your retirement savings affect your income gap?

Your retirement income gap estimate currently shows how much monthly income you would receive if 50% of your projected retirement savings—at the time of retirement—were converted into a fixed immediate annuity. Raising the percentage would raise the monthly income amount; lowering it would lower the monthly income amount.

0% 25% 50% 75% 100%

*NOTE: If you did not choose to annuitize 100% of your (and your spouse's) retirement savings, you may have a remaining balance that can be utilized to help close your income gap.

As determined by the IRS, you must begin taking required distributions from 401(k) and IRA accounts by a specified date. The annuity satisfies this required minimum distribution rule. Roth IRAs and Roth 401(k)s do not require withdrawals.

Your next steps

If you’re falling short right now, don’t worry. Here are some valuable ways that can help you increase your savings and improve your outlook.

Create a personalized retirement plan

Before making a major financial decision, like retiring, it’s helpful to consult with a financial advisor. A financial advisor can help you create a personalized financial plan by reviewing your employer benefits package and choosing the best options to help meet your individual needs in retirement.

Save your personalized results by bookmarking this page. You can also share your results with a financial advisor. You and your advisor can return to any part of this Retirement Income Tool to explore different scenarios and see how changing some of your inputs may impact your outlook.

Focus on spending smarter now to save more

While you may not have much control over how much you earn, you do have complete control over how much you spend. By decreasing monthly expenses, you increase how much you have available to save.

How? Here are a few suggestions:

  • Debt: Eliminate high-interest consumer debt by paying more every month toward your credit card balances, personal loans, or auto loans. In the short run, you’ll be spending more every month. But once these debts are eliminated, you’ll have freed up more money to put toward your savings.
  • Healthcare: Take care of yourself through preventative care, by eating healthier, and exercising regularly to help avoid healthcare issues down the road.
  • Housing: Housing costs are one of the highest spending categories. Pay more toward your mortgage every month to pay it off faster. Or, consider a reverse mortgage. You may also want to downsize to a smaller home and take advantage of smaller mortgage payments.
  • Insurance: Evaluate your insurance coverage to ensure you are getting the best plans to meet your lifestyle.

Learn more about Financial Wellness.

At age 50, you can make catch-up contributions to your 401(k) and IRAs

Catch-up contributions allow you to make contributions in excess of the standard tax-deferred limits. This lets you put even more money toward your retirement savings every year.

Click here for current year catch-up contribution amounts.

You can also learn more about other benefit questions to ask before retirement.

Additional Resources

Retirement Readiness: Easy Math You Should Do Before You Retire

Making the transition from work life to retirement is a milestone that requires planning. Will you be financially prepared? Doing some simple calculations will help you better evaluate your finances long-term.

Retirement Income That’s as Regular as Clockwork

Meet Mel. She plans for a long, active retirement. Learn the financial solution she discovered that provides the security of guaranteed lifetime income in retirement.

Retirement Readiness: 5 Things to Consider Before Retirement

When will you be able to retire? And how will your retirement look? Here are five things to consider as you prepare for your future.