Retirement cash flow
What Is a Retirement Income Gap?
A retirement income gap is the difference between the monthly income you want and the income expected from sources available at that point in time.
Why timing matters
You may stop working before a pension begins, before Social Security starts, or before you plan to withdraw from the TSP. The gap can change over time as each source starts.
Simple monthly calculation
Desired monthly retirement income - available monthly income = monthly gap.
Available income could include a FERS pension, Social Security, military retired pay, VA disability compensation, brokerage withdrawals, rental income, and other pensions.
Questions to answer
- How many months or years must the bridge last?
- Which account will fund the gap?
- How will taxes and inflation affect the estimate?
- What happens if investment returns are lower than assumed?
- How much emergency cash should remain outside the bridge plan?
Educational reminder: This article is general information, not individualized financial, tax, legal, or benefits advice. Confirm your records and eligibility with your agency and official sources.