Mind the gap Making up the difference between
If you have monthly expenses of $5,000, your income from Social Security and Pensions may still leave a significant “income gap.” You must fill the gap with money from your retirement nest egg.
guaranteed income and expenses is important to maintaining your lifestyle in retirement.
Income Gap $1,598
Social Security $2,583
Pensions $819
$0
$5,000
With a hypothetical inflation rate of 2.5%, the "Income Gap" can reach an amount greater than $520,000 over a 20 year retirement.
Income Gap $489,998
Income Gap $343,970
Pensions $196,540
Pensions $147,405
Social Security $732,725
Social Security $520,719
15 years
20 years
Assumes average Social Security and traditional pension benefits for a couple before taxes and $5,000 initial monthly expenses. Also assumes a 2.5% inflation rate (income gap), average Social Security (with 1.6% cost of living adjustment) and traditional pension benefits for a couple before taxes and $5,000 initial monthly expenses.
Assumed average Social Security benefits received by a couple, both of whom were receiving benefits in 2019. http://www.pensionrights.org/publications/ statistic/income-social-security. Assumed average private pension benefits received by one person, age 65 and older in 2018. http://www.pensionrights.org/publications/statistic/income- pensions.
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