See how much of your essential retirement expenses are guaranteed for life — and the exact monthly gap that still depends on the market.
The calculator compares two numbers: the income you're guaranteed to receive for life, and the essential expenses you have to cover every month. The difference between them is your income floor gap. Move the sliders above to see the share of your essentials that's protected for life, the monthly gap that still rides on the market, and the total you'd need to cover that gap over your retirement.
Your retirement income floor is the layer of income you can count on for the rest of your life, no matter what the stock market does. It typically comes from Social Security, a pension, and any lifetime annuity income. A solid floor means your essential bills are covered by guaranteed sources — so a bad market year affects your vacations and extras, not your rent and groceries.
Retirees whose essentials are covered by guaranteed income tend to report less financial stress and are less likely to sell investments at a loss during downturns — because their day-to-day life doesn't depend on the market's next move.
The flooring approach splits retirement spending into two buckets. Essentials — the non-negotiable bills — are matched with guaranteed income. Discretionary spending — travel, dining, gifts — can be funded from investments that carry more risk and more growth potential. The goal isn't to guarantee every dollar; it's to guarantee the dollars you can't afford to lose. Most people build the floor in this order: start with Social Security, add any pension, then measure what's left. If guaranteed income doesn't fully cover essentials, that remaining gap is where a lifetime income annuity can fit.
The gap is simply your essential expenses minus your guaranteed income. The total is that monthly gap multiplied by 12 months and by the number of years you plan for. For example, a $1,300 monthly gap over a 25-year retirement (age 65 to 90) adds up to about $390,000.
It's a straightforward sum of the shortfall over time — it does not assume any investment return, inflation adjustment, or specific product, and it isn't a quote. The point is to show the scale of the gap in plain dollars. A licensed specialist can walk you through the options for covering it.
If the calculator shows a gap, the goal is to turn more of your income into guaranteed, lifelong income — so your essentials are covered no matter what the market does. There are a few proven ways to do it, and most retirees use a combination. The right mix depends on when you need the income to start, how much flexibility you want, and your health and legacy goals.
Add guaranteed lifetime income. A single premium immediate annuity (SPIA) turns a lump sum into income that starts right away and continues for as long as you live. A fixed index annuity with a lifetime income rider can start income later and may increase it over time, while protecting your principal from market losses. Either way, that income is contractually guaranteed and doesn't stop if the market drops or you live longer than expected.
Delay Social Security. Every year you wait to claim past your full retirement age — up to age 70 — permanently increases your benefit by roughly 8% a year. Because that income is guaranteed, inflation-adjusted, and lasts for life, delaying is often one of the most cost-effective ways to close part of the gap.
Right-size your essentials. Sometimes the fastest win is lowering the number the gap is measured against. Refinancing or paying off a mortgage, relocating, or trimming a recurring fixed cost reduces your essential expenses — which shrinks the gap your guaranteed income has to cover.
A HiWire specialist can model these options together and show you which combination closes your specific gap — with quotes from 44+ carriers and no pressure to buy.
Talk with a specialist →What counts as guaranteed income?
Income that continues for life regardless of markets: Social Security, most pensions, and lifetime annuity income. Withdrawals from a 401(k) or IRA are not guaranteed income, because they depend on your balance and market returns.
How much of my expenses should be guaranteed?
A common target is to guarantee 100% of your essential, must-pay expenses, then fund discretionary spending from investments. Some retirees prefer to guarantee even more for peace of mind.
How is the total I'll need calculated?
It's your monthly gap × 12 months × the number of years you plan for. For example, a $1,300 monthly gap over 25 years is about $390,000. It doesn't assume any investment return or inflation — it's a simple picture of the total shortfall over your retirement.
Is this a quote?
No. It's a hypothetical illustration for education only. A licensed specialist can provide current, personalized numbers for your situation.
This calculator is a hypothetical illustration for educational purposes only — not a quote, prediction, or guarantee. The total shown is your monthly income gap multiplied by the number of years you choose to plan for; it does not assume any investment return, inflation, or specific product, and your actual needs will vary. Please consult a licensed professional before making decisions.
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