Shortfall is a term for withdrawals modeled to fund the gap between income and expenses in your plan.

The Planner will automatically fund the expenses in your plan. It will first use available Income such as work income, Social Security, and Pensions. When your income does not meet your expense need, the Planner will fund the remaining expenses by creating savings drawdowns (shortfalls) in your plan. Savings drawdowns are automatically calculated based on the gap between income and expenses, which we refer to as your gap.

The gap calculation used to determine withdrawals is Income - Savings/Contributions - Expenses. Interest is not used to fund expenses.

If your income from all sources does not cover your expenses you will see a shortfall withdrawal in your plan.

There are years where you may see a shortfall on the charts but not experience a net drawdown for the year.

Your Lifetime Income Projection Chart reflects your annual Net Savings Drawdown.

When you have a shortfall withdrawal and no Net Savings Drawdown, the accounts are not being reduced. This is simply an artifact of our code and which does not impact your savings balances.