Pension income gap

Your pension replaces part of your check. A 403(b) covers the rest.

Every retirement plan is personal. Your pension details, target timeline, and lifestyle needs determine whether you face an income gap—and how a 403(b) account fills it.

Two people discuss retirement plans together at their kitchen table.

A useful starting point

Start with what your pension is designed to provide.

Public pensions provide an essential foundation for retirement, but understanding how they actually work in practice helps you spot income gaps before you leave service.

01

Foundation, Not Total Coverage

Pensions are designed to replace a portion of your final income—rarely 100% of your current lifestyle.

02

Inflation Protection Has Limits

Annual cost-of-living adjustments may not keep up with rising medical costs, taxes, or daily expenses over 20+ years.

Explore inflation protection
03

Fixed Payout Rules

Unlike personal accounts, pension checks are structured as steady monthly income rather than flexible cash you can access for major emergencies.

04

Payout Choices Matter

Selecting options for continuous spousal or beneficiary coverage permanently adjusts your monthly payout amount.

The question behind the estimate

What will your pension replace?

See how pension and savings work together

Compare your expected pension check with the actual income you'll need. Factor in Social Security (if applicable), personal accounts like a 403(b), and other resources to see how complete your picture is.

There is no single "pension percentage." Your gap is simply the difference between what your pension pays and the life you plan to live.

Three details that clarify your retirement picture.

01

Your latest benefit estimate

Gather the most recent pension statement or online estimate from your retirement system.

02

Your target timeline

Consider your ideal retirement age—and how flexible you want that timing to be.

03

Your income priorities

Outline both essential living costs and discretionary goals (like travel or healthcare).

TAKE THE NEXT STEP

What could your pension gap look like?

Bring your pension estimate, retirement goals, and 403(b) options together into one clear, personalized picture.

Schedule a Pension Review