Retirement Readiness Calculator

Are you on track to retire when you want? Enter your current savings, annual contributions, target income, and Social Security estimate. The calculator projects your portfolio at retirement — in today's dollars — and shows how far you are from your number.

How to read your readiness number

The calculator uses the 4% rule as a yardstick: a retirement portfolio historically sustains 30+ years when annual withdrawals stay at or below 4% of the starting value. That means your "retirement number" — the portfolio that lets you stop working — is roughly 25× your annual income need from the portfolio.

Annual income need from portfolio = desired total income − Social Security − pension. If you want $90,000/yr and expect $28,000 from Social Security, your portfolio needs to fund $62,000/yr. At 25×, your target is $1,550,000.

The "real return" input removes inflation from the math so you can work in today's dollars throughout. A 4% real return is a reasonable baseline for a diversified 60/40 portfolio over a 20-30 year horizon (roughly 7% nominal minus 3% inflation). Conservative planners use 3%; aggressive planners use 5-6% — but higher assumed returns produce higher readiness scores that may not materialize.

What the scores mean

• ≥100% (on track or surplus): At your current pace, you'll hit your number by your target retirement date. Consider whether you want to retire earlier, spend more, or leave a larger legacy.
• 80–99% (close): A modest increase in savings rate, a 1-2 year delay, or adjusting the portfolio mix may close the gap. Worth running the Social Security claiming math — delaying SS from 67 to 70 can add $8,000–$12,000/yr in guaranteed income for the rest of your life, which directly reduces your portfolio target.
• 60–79% (meaningful gap): The gap likely requires a combination of changes: saving more aggressively, retiring later, or adjusting retirement spending assumptions. A retirement income specialist can model multiple scenarios simultaneously.
• Below 60% (significant gap): Your current trajectory won't support your target. The sooner you get a realistic plan in place, the more options you have. Waiting 5 years narrows those options considerably.

Ways to close a retirement gap

If the calculator shows a shortfall, here are the levers — ranked by typical impact for someone 5-10 years from retirement:

1. Delay retirement 1-3 years. This does three things at once: more years of saving, fewer years of drawing, and continued portfolio growth. Adding 3 years of saving $30K/yr to a $1M portfolio at 4% real adds roughly $200K+ to your projected balance while shrinking the drawdown period.
2. Maximize contributions before retirement. In 2026: 401(k) employee deferral is $24,500; if you're 50+ you can add $8,000 catch-up for a total of $32,500 ($35,750 if ages 60-63 via the SECURE 2.0 super catch-up).¹ IRA adds $7,500 ($8,600 if 50+).² Together, a couple in their early 60s can shelter $80,000+/yr in tax-advantaged accounts.
3. Delay Social Security claiming. Benefits grow 8%/year (guaranteed, real) from your full retirement age (67 for those born 1960+) to age 70. Claiming at 70 vs. 67 increases your benefit by 24%. For a couple, delaying the higher earner's benefit is particularly powerful — the survivor collects the larger amount indefinitely.
4. Reduce the required portfolio via spending adjustment. Every $5,000 reduction in annual retirement spending lowers your portfolio target by $125,000 (at 4% rule). This isn't about sacrifice — it's about identifying which spending you actually value vs. habitual spend.
5. Run Roth conversions in the "golden window." If you retire before Social Security and RMDs start, you may have several years of unusually low taxable income. Converting traditional IRA dollars to Roth during this period reduces future RMDs (which spike income and can trigger IRMAA surcharges) and leaves you with a tax-free withdrawal bucket that doesn't count against Medicare costs.
6. Review your allocation and assumed return. A 4% real return assumes a reasonably diversified, growth-oriented portfolio. If you've shifted heavily to cash and CDs out of anxiety, your actual real return may be negative. A retirement specialist can model whether a different asset allocation materially improves your trajectory.

What the calculator doesn't model

The readiness calculator gives you a useful single number, but retirement income planning has more moving parts:

• Sequence-of-returns risk. A 20% portfolio drop in year 2 of retirement is far more damaging than the same drop in year 12. The calculator uses average returns; your sequence-of-returns stress test shows the range of outcomes.
• Tax drag. Withdrawing from a traditional IRA means paying income tax on every dollar. Withdrawing from a Roth means zero tax. The withdrawal order guide covers how to sequence accounts to minimize lifetime tax.
• Medicare and IRMAA. Income in retirement — including Roth conversions and traditional IRA withdrawals — affects your Medicare Part B and D premiums. The IRMAA calculator shows where the surcharge cliffs are.
• Long-term care. 70% of people who reach 65 will need some form of paid long-term care. Median nursing home costs in 2026 run $9,277–$10,646/month. The long-term care guide covers self-insuring vs. hybrid policies.
• RMD income spike. Required minimum distributions from traditional accounts begin at 73 (or 75 if born 1960+, per SECURE 2.0). For a sizable IRA, RMDs can push you into a higher bracket — or over an IRMAA threshold — unexpectedly. The RMD calculator projects your future distributions.

1. IRS Notice 2025-67 / IRS.gov: 401(k) limit increases to $24,500 for 2026 — employee deferral $24,500; catch-up 50+ $8,000; super catch-up ages 60-63 $11,250 (SECURE 2.0 § 109).
2. IRS.gov: IRA Contribution Limits — 2026 base $7,500; catch-up 50+ $1,100 (total $8,600).
3. Bengen, W.P. (1994). "Determining Withdrawal Rates Using Historical Data." Journal of Financial Planning. Origin of the 4% rule; widely replicated by Kitces and Pfau research.
4. Pfau, Wade D. (2021). Retirement Planning Guidebook. Discussion of 3.3% SWR for 40-year retirements; real-return assumptions for diversified portfolios.

Contribution limits verified against IRS Notice 2025-67. Return assumptions are for planning illustration only — past performance does not guarantee future results. Values current as of May 2026.