Wondering if the numbers actually work for retirement? This five-step worksheet can give a credible yes-or-no answer in minutes.

It blends your current savings, future contributions, life expectancy, and guaranteed income to estimate a simple annual cash-flow target—then compares it to your spending. It’s not perfect, but it’s clear, repeatable, and extremely useful.

Quick Method

The idea is straightforward: total what you’ll contribute before retiring, add what you’ve already saved, spread that sum over your expected years in retirement, and stack guaranteed income on top. Finally, pit that projected annual income against your spending. If the gap is positive, you’re on track. If not, you’ll adjust the levers that matter most.

Step One

List yearly retirement contributions across all accounts. Include employer plans (401(k), 403(b), TSP), IRAs, and taxable investing earmarked for retirement. Use realistic numbers you can maintain. If contributions vary with bonuses, average the last few years or model a conservative base plus an occasional uplift.

Step Two

Multiply those annual contributions by the years left until your target retirement age. Someone 12 years out contributing $18,000 per year would project $216,000 of future contributions. This step isolates the power of persistence: even moderate annual savings compound into meaningful retirement funding when consistently applied.

Step Three

Add your current retirement savings to the future contributions total. This represents the pool available to support spending. Yes, markets rise and fall; for a quick test, assume long-run returns and inflation roughly offset. For deeper planning, you can later refine with growth and cost assumptions, but start with this conservative baseline.

Step Four

Divide that pool by the number of years you expect to spend in retirement. Use a life expectancy appropriate for your household, health, and family history—then add a buffer. Many planners model 25–35 years. This step converts your nest egg into an annual draw estimate (before taxes) that is simple and easy to interpret.

Step Five

Add guaranteed income sources. Include Social Security, pensions, and lifetime annuity payments if any. Use the annual amounts. If one spouse will claim a spousal benefit, be sure to use the correct estimate. For single earners, include only your projected benefit. The sum equals your projected annual retirement income before taxes.

Check Result

Compare that figure to your expected annual expenses in retirement. Build a quick budget: housing, healthcare premiums and out-of-pocket costs, food, transportation, insurance, utilities, travel, gifts, subscriptions, and taxes. If the projected income meets or exceeds expenses with a safety margin, your plan is on course. If not, it’s time to fine-tune.

Worked Example

Consider a couple, age 55, contributing $14,000 per year to IRAs. They have $150,000 saved, want to retire at 67, and plan for 27 years in retirement. Expected Social Security: $26,400 for one spouse and $13,200 spousal benefit.

1) Annual contributions: $14,000

2) Years to retire: 12 → $14,000 × 12 = $168,000

3) Add current savings: $168,000 + $150,000 = $318,000

4) Divide by years retired: $318,000 ÷ 27 ≈ $11,777

5) Add guarantees: $11,777 + $26,400 + $13,200 = $51,377 projected annual income

They’d compare $51,377 to their retirement budget and adjust if there’s a gap.

Important Nuances

This quick math assumes long-term returns and inflation roughly offset. Real life won’t line up perfectly. Treat the result as a screening tool, not a verdict. Also note survivorship effects: when one spouse dies, the smaller Social Security benefit typically stops, though certain expenses may decline. Model both “both alive” and “survivor” budgets.

Fine-Tune Levers

If the number is close but not quite there, adjust the big levers:

• Save more each year (even 1%–3% raises compound meaningfully).

• Work longer or retire in phases; extra earning years can boost benefits and reduce draw years.

• Delay Social Security to increase lifetime, inflation-adjusted income.

• Reduce fixed expenses (housing, vehicles, insurance deductibles).

• Consider partial annuitization to cover essential expenses.

If There’s a Shortfall

If the gap is wide, don’t avoid the math—use it. Options include relocating to a lower-cost area, downsizing, extending work several years, seeking part-time income in early retirement, or revisiting discretionary spending like travel and hobbies. You can also rebalance investments toward growth while respecting risk tolerance to improve long-run sustainability.

Common Pitfalls

Two errors show up often: ignoring taxes and underestimating healthcare. Build a basic tax view (federal, state) and include Medicare premiums or marketplace premiums pre-65. Also beware of lifestyle creep between now and retirement; today’s spending often becomes tomorrow’s “must haves” unless actively managed.

Make It Stick

Turn the five steps into an annual ritual. Update contributions, balances, retirement date, life expectancy, and benefit estimates. Capture large upcoming costs (roof, car, caregiving) and test again. A 15-minute checkup each year keeps the plan aligned and prevents surprises from turning into crises.

Conclusion

You don’t need a complex simulator to get a clear first answer. With five inputs and a sober budget, you can quickly see whether your savings, future contributions, and guaranteed income are likely to cover your lifestyle—and which levers to adjust to close any gap.