How it works
Annual funding gap = max(0, spending − other income). Target pot = annual gap / entered initial withdrawal rate.
Input definitions
- Target annual spending in today’s money
- Enter the value in the labeled unit.
- Other annual retirement income in today’s money
- Enter the value in the labeled unit.
- Assumed initial withdrawal rate (%)
- Enter the value in the labeled unit.
A worked example
- Target annual spending in today’s money
- 40000
- Other annual retirement income in today’s money
- 20000
- Assumed initial withdrawal rate (%)
- 4
Assumptions & limits
Entered single-currency amounts and fixed rates; monthly interest and two-decimal half-up rounding. No tax, lending approval, changing rates or live market data.
Sources & review
Maintained by AnsRio. Methods and examples use automated checks; this does not imply independent professional certification.
Method updated 2026-10-17. Content checked against the stated method and examples. Our verification approach.
Common questions
Does a 4% withdrawal input guarantee that savings will last?
No. A fixed input cannot capture sequence risk, tax, fees, changing spending or lifespan. Use this worksheet to explore assumptions, not to certify retirement adequacy.
How does Retirement income gap and target pot work?
Annual funding gap = max(0, spending − other income). Target pot = annual gap / entered initial withdrawal rate.
What are the limits of Retirement income gap and target pot?
Entered single-currency amounts and fixed rates; monthly interest and two-decimal half-up rounding. No tax, lending approval, changing rates or live market data.