Shortfall
Scenario: A single person approaching retirement. These amounts are hypothetical, monthly, in today’s dollars, and use one consistent before-tax or after-tax basis.
| Desired monthly income | $5,000 |
|---|---|
| Social Security | $2,100 |
| Pension | $700 |
| Savings and investment income | $1,200 |
| Other recurring income | $300 |
| Total estimated monthly income | $4,300 |
| Estimated monthly gap | $700 |
| Annualized gap (monthly gap × 12) | $8,400 |
| Estimated monthly surplus | $0 |
| Annualized surplus (monthly surplus × 12) | $0 |
With a $5,000 monthly income goal and $4,300 of estimated monthly income, the entered sources are $700 below the goal. The annualized gap is $8,400 if the same monthly difference continued for 12 months.
One supported scenario change: Try a second scenario with a $250 lower monthly goal: the comparison would then show a $450 monthly gap, or $5,400 annually. This is an arithmetic scenario, not a recommendation to cut spending.
Limitation: The result only compares the entered monthly goal and income. It does not establish actual expenses, estimate required savings, account for taxes, test benefit options, or guarantee future income.
Approximately balanced
Scenario: A two-person household using combined figures. These amounts are hypothetical, monthly, in today’s dollars, and use one consistent before-tax or after-tax basis.
| Desired monthly income | $4,800 |
|---|---|
| Social Security | $2,300 |
| Pension | $0 |
| Savings and investment income | $1,800 |
| Other recurring income | $700 |
| Total estimated monthly income | $4,800 |
| Estimated monthly gap | $0 |
| Annualized gap (monthly gap × 12) | $0 |
| Estimated monthly surplus | $0 |
| Annualized surplus (monthly surplus × 12) | $0 |
The combined monthly income equals the entered $4,800 household goal. The estimate shows no gap and no surplus. It does not test whether the goal covers every expense or whether income will stay at this level.
One supported scenario change: If the household’s other recurring income estimate were $250 lower, the total would be $4,550 and the comparison would show a $250 monthly gap, or $3,000 annually.
Limitation: The result only compares the entered monthly goal and income. It does not establish actual expenses, estimate required savings, account for taxes, test benefit options, or guarantee future income.
Surplus
Scenario: A household with several recurring income sources. These amounts are hypothetical, monthly, in today’s dollars, and use one consistent before-tax or after-tax basis.
| Desired monthly income | $4,200 |
|---|---|
| Social Security | $1,800 |
| Pension | $1,000 |
| Savings and investment income | $1,500 |
| Other recurring income | $400 |
| Total estimated monthly income | $4,700 |
| Estimated monthly gap | $0 |
| Annualized gap (monthly gap × 12) | $0 |
| Estimated monthly surplus | $500 |
| Annualized surplus (monthly surplus × 12) | $6,000 |
The combined $4,700 monthly estimate is $500 above the $4,200 goal. The calculator shows a zero gap and a $500 estimated monthly surplus. A surplus does not guarantee retirement readiness.
One supported scenario change: If the estimated savings income were $1,000 rather than $1,500, total monthly income would equal $4,200. That change only demonstrates the model’s arithmetic; it does not determine a sustainable withdrawal.
Limitation: The result only compares the entered monthly goal and income. It does not establish actual expenses, estimate required savings, account for taxes, test benefit options, or guarantee future income.
Related pages
Review the calculator methodology, compare hypothetical worked examples, or return to the free retirement income calculator.