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 $1,402
Social Security $2,223
Pensions $1,365
$0
$5,000
When you include an annual inflation rate of 2.5%, the “Income Gap” adds up to better than $520,000 over a 20-year retirement.
Income Gap $520,496
Income Gap $349,645
Pensions $327,680
Pensions $245,760
Social Security $684,504
Social Security $480,510
15 years
20 years
Assumes average Social Security and traditional pension benefits for a couple before taxes and $5,000 initial monthly expenses. Social Security: Social Security Administration, Monthly Statistical Snapshot, March 2019. Pension: U.S. Census Bureau, Current Population Survey (CPS) Annual Social and Economic (ASEC) Supplement, January 2019.
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