Annuity Planning · Tool 1 of 12
Annuity Gap-Fill Calculator
Size the SPIA premium needed to close a client’s essential-expense income floor. Pull guaranteed income (Social Security, pensions, existing annuities) from one side, target floor from the other, get the required premium and the carrier-quoted income.
Required premium
$603,448
Annual gap
$42,000
Monthly income
$3,500
Premium / annual income
14.4×
30-year income projection
Total lifetime income
$1,260,000
Total taxable
$1,260,000
IRR (LE-truncated)
5.60%
Gap re-opens in year 1. With a level SPIA and 2.50% inflation on the floor, the purchasing-power shortfall reappears around age 66. by then about $1,800. Consider adding a COLA rider (raises today’s premium ~25%) or sizing for a higher initial floor.
Year-by-year table
| Year | Age | Income | Taxable |
|---|---|---|---|
| 2026 | 65 | $42,000 | $42,000 |
| 2027 | 66 | $42,000 | $42,000 |
| 2028 | 67 | $42,000 | $42,000 |
| 2029 | 68 | $42,000 | $42,000 |
| 2030 | 69 | $42,000 | $42,000 |
| 2031 | 70 | $42,000 | $42,000 |
| 2032 | 71 | $42,000 | $42,000 |
| 2033 | 72 | $42,000 | $42,000 |
| 2034 | 73 | $42,000 | $42,000 |
| 2035 | 74 | $42,000 | $42,000 |
| 2036 | 75 | $42,000 | $42,000 |
| 2037 | 76 | $42,000 | $42,000 |
| 2038 | 77 | $42,000 | $42,000 |
| 2039 | 78 | $42,000 | $42,000 |
| 2040 | 79 | $42,000 | $42,000 |
| 2041 | 80 | $42,000 | $42,000 |
| 2042 | 81 | $42,000 | $42,000 |
| 2043 | 82 | $42,000 | $42,000 |
| 2044 | 83 | $42,000 | $42,000 |
| 2045 | 84 | $42,000 | $42,000 |
| 2046 | 85 | $42,000 | $42,000 |
| 2047 | 86 | $42,000 | $42,000 |
| 2048 | 87 | $42,000 | $42,000 |
| 2049 | 88 | $42,000 | $42,000 |
| 2050 | 89 | $42,000 | $42,000 |
| 2051 | 90 | $42,000 | $42,000 |
| 2052 | 91 | $42,000 | $42,000 |
| 2053 | 92 | $42,000 | $42,000 |
| 2054 | 93 | $42,000 | $42,000 |
| 2055 | 94 | $42,000 | $42,000 |
Suitability + advisor flags
- info · premium tax stateCA levies a premium tax on annuity contracts (~2.35%). quoted payout factor already reflects this.
- info · cola gap reopensLevel SPIA. purchasing power erodes ~25% over 10 years at 2.5% inflation. Consider a COLA rider if income floor needs to keep pace.
Take this further
Stack the gap-fill SPIA into a retirement plan.
Adds this SPIA contract to the plan’s annuity timeline so it projects year-by-year alongside the rest of the household’s accounts, income, and taxes.
No retirement plans on file for this household yet. Start a plan first →