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Retirement Income Gap

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What’s Your Retirement Income Gap?Use this worksheet to determine if your sources of income will be enough to

potentially help you live a comfortable lifestyle during retirement. You may

have enough time to implement steps today to close any income gap you may

have between your necessary expenses and your retirement income.

A Retirement Resource for Individuals and Families

Step 1: Determine your necessary expenses and bills

Expense/Bill

Current

Monthly Cost

Inflation Factor

(If applicable)

Monthly Cost

at Retirement

(Current cost x

inflation factor)

Mortgage or Rent (excluding property taxes

or home owners insurance)

Driven by loan/

agreement

State and Municipal Property Taxes

(if applicable to your state)X

Home Owners Insurance X

Maintenance or Association Fees (if living in a

community village, condominium complex or co-op)X

Loan Payments (car, home equity

and credit lines, boat, etc…)Driven by loan agreement

Credit Card(s) Driven by agreement

Grocery Bill X

Natural Gas or Oil Bill X

Electric Bill X

TV, Internet and Phone X

Automotive / Boat Insurance Driven by plan

Medical Insurance (not Medicare Part B

premiums as these are automatically

deducted from your Social Security checks.)

Driven by plan

Co-Payments per Prescription Driven by plan

Co-Payments per Doctor Visit (if reoccurring) Driven by plan

Other Expenses X

Total:

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Step 2: Determine the monthly sources of retirement income for you and your spouse

Income Sources: Be Sure to Adjust Monthly Amount for Taxes Monthly Amount

Social Security — Go to www.SocialSecurity.gov/estimator to estimate your benefit amount.

Be sure to subtract taxes and Medicare Part B monthly premiums.

Defined Benefit Plans — Only available if provided by your past employers and if you were vested

in the plan.

Defined Contribution Plans — Like 401(k), 457(b) and 403(b) plans. Required Minimum Distributions

(RMD) must begin at age 70 ½, and are fully taxable when not made from Roth contributions.

Individual Retirement Arrangements (IRAs) — RMDs must begin at age 70 ½ for traditional IRAs.

Qualified distributions made from Roth IRAs are tax-free.

Through Bank Accounts* — Savings, CDs, money market accounts, and reverse mortgage payments.

Interest is taxable.

Brokerage Account Investments* — Treasury Bonds and T-Bills interest, municipal bond interest,

mutual funds, annuities, dividends and capital appreciation. Taxes deducted or payable depend

on the type of investment.

Other Assets

Total:

Step 3: Determine if you have an income gap — take step 1’s total and subtract it from step 2’s total

Step 2 Total of Income Sources:

— Step 1 Total of Necessary Expenses:

= Remaining Income for Discretionary Expenditures

– like travel, membership fees, dining out and going to the movies.

The Inflation Factors in the table shown to the right

are the future purchasing power of today’s $1.00 in five,

ten, fifteen and twenty years, using hypothetical inflation

rates. For example, $1.00 worth of goods today may cost

$1.10 in five years at a 2% annual inflation rate. Multiplying

your current monthly expense by the appropriate

inflation factor may enable you to see how much

that expense may be when you retire or thereafter.

Number of Years

Until Retirement5 10 15 20

Inflation Factors

At 2% Inflation Rate 1.10 1.22 1.35 1.49



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Step 4: Take necessary steps to close your income gap

You may have noticed that discretionary expenditures,

which are the ones that you will probably enjoy the most

during retirement, are missing from your expenses

because you can’t enjoy them unless you can pay for

them. Now that you can see if your estimated expenses

during retirement are more or less than your estimated

retirement income, you can implement appropriate steps

today to try to close your retirement income gap.

Work with a financial professional to explore your

investment strategy to help you understand your lifetime

sources of income, like Social Security, and to explore

possible ways to maximize income potential from your

retirement savings through different withdrawal rates,

and possibly protect against inflation.

Decrease or remove expenses, such as paying off all loans

and mortgages before you retire. Or perhaps you can

reduce these ongoing expenses by refinancing them.

Reduce excess income (when you can) because during

retirement the name of the game is “lifetime income.”

By reducing excess income, more savings remain at work

within your investments, which could lead to increased

income to spend on discretionary expenditures at

appropriate times.

If available, maximize your participation in an employer-

sponsored retirement plan (like a 401(k) plan) and/or

contribute to an individual retirement arrangement (IRA).

Take advantage of catch-up contributions if you are age

50 or older.

Purchase financial products that can provide immediate

or future guaranteed payments for your life and your

spouse’s life, and that can also provide protection for

unexpected events.

Annuities — Creating your source of guaranteed income

An annuity is issued by an insurance company and

may be an appropriate choice for you when it comes

time to create a guaranteed source of income for

retirement, which can last for your lifetime or for a

set period of time. The Guardian Insurance & Annuity

Company, Inc. (GIAC) offers a suite of annuity products

(variable, fixed, immediate and deferred income annuity

products) that could help supplement your income

with guaranteed payments.

Speak with your financial professional

In addition to other sources of income, having a

guaranteed source of lifetime income for you and your

spouse may give you the confidence and ability to enjoy

retirement with the people you love, doing the things

you love, without the worry of outliving your money.

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Speak with your financial professional today about the benefits of owning an annuity.

* Please note that the higher the withdrawal percentage the greater the potential risk that you will

outlive this source of income. For example, if you plan to withdraw 5% of the original principal amount each year, that asset may last for 20 years (depending on market volatility).

IMPORTANT CONSIDERATIONS ABOUT ANNUITIES

This material is for educational purposes only. This information is not legal, investment, tax

or actuarial advice and it should not be relied on as the basis to purchase a variable annuity or

implement a retirement strategy. Please consult your legal, investment, tax and actuarial advisors

for information that is specific to your situation.

This Material is Intended For General Public Use. By providing this material, we are not undertaking to provide investment advice for any specific individual or situation, or to otherwise act in a fiduciary capacity. Please contact one of our financial professionals for guidance and information specific to your individual situation.

Withdrawals of taxable amounts from a variable or fixed deferred annuity will be subject to ordinary income tax and possible mandatory federal income tax withholding. If withdrawals are taken prior to

age 59½, a 10% IRS penalty may also apply. Withdrawals may also be subject to a contingent deferred sales charge. Product provisions and features may vary from state to state.

All guarantees are backed exclusively by the strength and claims-paying ability of The Guardian

Insurance & Annuity Company, Inc. (GIAC). GIAC is a wholly owned subsidiary of The Guardian Life

Insurance Company of America (Guardian). PAS is a wholly owned subsidiary of GIAC. Guardian, GIAC

and PAS are located at 7 Hanover Square, New York NY 10004.

PAS is a member: FINRA, SIPC.

Guardian® is a registered trademark of the Guardian Life Insurance Company of America®

Not a Deposit | Not FDIC or NCUA Insured | May Lose Value | No Bank or Credit Union GuaranteeEB015923 (05/17) 2017-40474 (Exp. 05/19)

The Guardian Life Insurance

Company of America

guardianlife.com

New York, NY

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