Quantify your future income needs. Our deterministic model identifies the "Gap" between your projected fixed income and the lifestyle you intend to lead in retirement.
AdSense/YMYL Compliance Notice: This tool is an educational estimation engine for income replacement modeling. It is not an investment platform, retirement advisor, or actuarial service. It does not account for future tax law changes, healthcare inflation, or market volatility.
Include rent/mortgage, taxes, and living costs.
Average is 70-85% for lifestyle parity.
Based on your government benefit estimate.
Retirement planning is an exercise in Annual Cash Flow Requirement. You must determine how much money you need to spend every year once you stop working, and exactly where that money will come from.
Most individuals have multiple "layers" of income. The first layer consists of fixed sources like Social Security or Pensions. The Shortfall is the remaining amount that must be supplied by your assets.
Most financial models suggest you will need between 70% and 85% of your pre-retirement income. This is because you no longer pay FICA taxes, and your work-related commuting and savings costs disappear.
| Lifestyle Tier | Ratio Target | Spend Focus |
|---|---|---|
| Essential/Lean | 65% - 70% | Lower taxes, paid-off home. |
| Active/Global | 85% - 100% | High travel and healthcare. |
| Hybrid/Part-Time | 50% - 60% | Bridge income reduces the gap. |
Once you identify your Annual Shortfall (e.g., $30,000), you can estimate the total capital required using the "Rule of 25."
Annual Shortfall x 25 = Your Wealth TargetThis assumes a 4% withdrawal rate. If your gap is $30,000, your target is $750,000. This provides a high probability of your assets lasting 30 years.