Retirement planning tool

Retirement income gap calculator.

See how much annual retirement income you may need, what Social Security and pensions cover, and roughly how large an SPIA premium would fill the rest. Estimates only, based on illustrative payout rates.

Sample illustrative 2026 SPIA rates
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Try the calculator See MYGA rates

Data as of October 13, 2026

Your numbers

Annual retirement spending Annual Social Security (you + spouse) — a yearly total: your SSA statement shows a monthly amount, so multiply it by 12 Annual pension income Other guaranteed income (rental, royalties, etc.) Your age at SPIA purchase SPIA buyer profile

Annual income gap to fill $44,000 $3,667 per month

SPIA premium needed $525,310 to fully cover the gap

Total income need $80,000

Guaranteed income $36,000

Payout per $100k $698/mo

Annual payout rate (not a yield — much of it is your own premium coming back) 8.38%

Illustration only — not a quote, an offer of insurance, or a guarantee. Payout figures are representative top-of-market rates for non-qualified single-premium immediate annuities, with standard adjustments applied for female, joint-life and cash-refund options; they are not a live carrier survey. Your actual payout depends on your exact age, sex, state of residence, premium, payout option and the carrier you buy from, and nothing is guaranteed until a contract is issued. The premium figure assumes the whole gap is covered by an immediate annuity and ignores inflation, taxes and any other assets you hold. Payments are backed by the issuing insurer's claims-paying ability and are not FDIC-insured.

Get personalized SPIA quotes Free · no obligation · We will connect you with an independent licensed insurance agent in our network, who may contact you about annuity products. Track Retirement is not an insurance agency and does not issue quotes.

Four strategies to fill the gap

Each strategy uses a different mix of guaranteed and market-based income.

Strategy	Guaranteed income	Investment risk	Liquidity	Inheritance value
Full SPIA annuitization	100% of gap	None	None (annuitized)	$0 (life-only) or limited (period certain)
Partial SPIA (50% of gap)	50% of gap from SPIA, rest from portfolio	Moderate	Half remains accessible	Partial preservation
MYGA ladder + portfolio	Gap covered from interest, principal preserved	Lower than equities	Free withdrawals + maturities	Full preservation
4% rule withdrawal	None (market-dependent)	Full market exposure	Maximum	Depends on market

These strategies are often combined rather than used alone. One common pattern: SPIA covers essentials (50%–70% of gap), MYGAs cover discretionary, equities cover growth and inheritance. See our SPIA carrier rankings.

SPIA income from $100,000, by age you start

Illustrative single-life payout by starting age — representative levels for A.M. Best A− and above carriers, not a survey or quote. Payout levels as of October 2026. A female buyer's check runs about 4.2% lower at 65 and 7.1% lower at 80, reflecting longer life expectancy. Actual quotes vary by carrier, state, sex and payout option.

The income-gap method

Sound retirement planning starts with a simple subtraction: your essential annual spending minus your guaranteed income (Social Security plus any pension). What's left is the gap a portfolio — or guaranteed lifetime income — has to fill. This calculator sizes that gap and shows how much annuity premium would cover it.

Why cover the gap with guaranteed income

Annuitizing just enough to cover essential expenses (the "income floor") removes sequence-of-returns risk from the spending you can't skip, and frees the rest of your portfolio to stay invested for growth and flexibility. It's the middle ground between "annuitize everything" and "annuitize nothing." The chart shows how the income a given premium buys rises with the age you start.

Delay Social Security if you can — each year to 70 raises the benefit ~7–8% and shrinks the gap permanently.
Inflation: a fixed annuity payment loses purchasing power unless you add a COLA option.
Don't over-annuitize: keep liquidity for shocks and goals.

Keep going

Price lifetime income with the annuity payout calculator, compare fixed growth in the MYGA vs. CD calculator, or read how annuities work.

Retirement income FAQs

How much retirement income do I actually need?

A common benchmark is 70%–80% of your pre-retirement income. So a household earning $100,000 typically needs $70,000–$80,000 per year in retirement to maintain their lifestyle. Adjust upward if you plan to travel more or maintain a high housing expense; downward if you'll pay off your mortgage or relocate to a lower cost-of-living area.

How is the "gap" calculated?

The gap is your annual spending minus your guaranteed income (Social Security + pensions). If you need $80,000/year and Social Security pays $36,000 plus a $12,000 pension, your gap is $32,000/year. That's the amount you need to fill from savings or annuitization.

How much SPIA premium fills a $30,000/year gap?

For a 65-year-old male, a SPIA pays roughly $8,376 per year per $100,000 of premium (life-only). To generate $30,000/year of guaranteed income, you'd need about $358,000 in SPIA premium. For a female buyer or joint life, the required premium is higher. These are illustrative, representative figures, not a live carrier survey or a quote — your actual payout depends on your age, sex, state, premium, payout option and carrier.

Should I annuitize all of my retirement savings?

Track Retirement cannot answer that for you — we are not a licensed insurance agent or adviser and we do not recommend any allocation. As background only: annuitizing is generally irreversible; premium that is annuitized normally stops being liquid and, under a life-only option, leaves nothing to heirs; and a fixed payment loses purchasing power over time unless you buy a cost-of-living option. How much guaranteed income makes sense depends on your spending, health, other guaranteed income and estate goals, and is a decision to make with a licensed insurance professional or a fiduciary adviser.

What if rates change after I buy?

SPIA payouts are locked in for life at the rate prevailing on your purchase date. If rates rise later, your existing SPIA isn't affected — but new SPIA purchases will pay more. That is one reason some buyers ladder SPIAs, buying in tranches over several years: it spreads the risk of locking in all your income at one interest-rate moment, though later tranches could pay less if rates fall.

Why you can trust Track Retirement

No carrier, advertiser, or listed agent can pay for a ranking, and none reviews our content before publication. Figures are drawn from primary sources — A.M. Best, NAIC, the IRS, SSA, and Treasury — and checked against them. Our content is researched and drafted with the help of AI tools and verified against those sources; see our editorial policy.

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Gap-based Income need after SS & pensions

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How this calculator works

The gap is calculated as (annual spending) − (Social Security + pension + other guaranteed income). The SPIA premium needed assumes illustrative, representative top-of-market 2026 payout levels — not a live carrier survey or a quote: $698/mo per $100k for a 65-year-old male, life-only. Female and joint-life figures apply standard adjustments to that base. For your exact rate, get a personalized SPIA quote from a licensed insurance professional. See full methodology.