Interactive Tools

Retirement Readiness Score

Answer seven plain questions to see a 0-100 retirement readiness index, the assumptions behind it, and the two changes that would move it most. For education only.

The Retirement Readiness Score compares two numbers. The first is what your savings could grow to by your planned retirement age, using a 5% nominal return and 2.5% inflation by default (about 2.44% after inflation, so every figure is in today's dollars). Advanced assumptions let you change both within set limits. The second is the nest egg needed to cover the part of your retirement income not met by Social Security or a pension, using a 4% withdrawal rate. The ratio of the two is turned into a 0-100 index on a smooth curve.

Projected savings = savings x (1 + r)^years + yearly savings x ((1 + r)^years - 1) / r Target nest egg = (income needed - Social Security/pension) / 4% Score = 100 x (1 - e^(-1.6 x projected / target))

If you add a spouse or partner, their income, savings and benefit are summed into one household. If you choose a Social Security claim age, the Social Security part of the benefit is scaled by the published age-based factors (70% at 62 to 124% at 70, relative to age 67).

The score is an index, not a prediction. Markets, taxes, inflation and your own plans may differ from these assumptions.

Seven questions

Preview

Use your best estimates. The score updates as you type. Nothing you enter here is stored unless you choose to email yourself the results.

15%0%30%+ The gold mark covers 10% to 15% of income, a range many planners cite.
Not sure? Your personal Social Security estimate is at ssa.gov/myaccount (about 5 minutes; use the figure at the age you plan to claim). Add any pension your employer has quoted you, per year. Or fill in a rough estimate for me.
Optional: household and Social Security timing
Enter the benefit in question 7 as it would be at age 67. The score then scales the Social Security part by the age-based factors the Social Security Administration publishes. If you retire before the claim age, the years without benefits are funded from savings. An approximation, not your personal estimate.
Pension income is not scaled by the claim age.
Advanced assumptions

Change the return and inflation the model uses, within limits. Opening this panel also draws a “rough start” line on the chart: the same plan if the balance fell 20% at the end of year one. It is an illustration of one scenario, not a forecast.

Standard: 5%
Standard: 2.5%

Your results

3555On track90--out of 100

Example — change the answers to see yours

Example Retirement Readiness Score

Savings by age, in today's dollars

Savings build until your planned retirement age. The dotted line after that draws down the yearly income gap, so it shows how long the model's savings would last, not a forecast.

Projected savingsAfter retirementTarget nest egg
Projected savings and target by age, in today's dollars
AgeProjected savingsTarget nest egg

Example — change the answers to see yours

The two changes that would move your score most

Each change is tested on its own, holding everything else the same. Illustrations of the model only, not recommendations.

Try a change (illustration only)

Move a slider to see the dial and chart update. Your answers above are not changed.

Your answers: --This change: --

Assumptions and disclosure:
  • Savings grow at a 5% nominal return with 2.5% inflation (about 2.44% after inflation). All results are in today's dollars. Under Advanced assumptions you can change both, within 2% to 8% for the return and 1% to 4% for inflation; the page then shows your numbers here.
  • Yearly savings are a fixed share of today's income, added at the end of each year and rising with inflation. Because the model works in today's dollars, level yearly savings in real terms are the same thing.
  • The target nest egg is the retirement income you need, less Social Security and pension income, divided by a 4% withdrawal rate. Social Security and pension amounts are taken as you enter them and do not change if you retire later.
  • Spouse or partner (optional): their income, savings and benefit are added to the household. The household uses the one retirement age you enter, which is a simplification.
  • Social Security claim age (optional): the Social Security part of the benefit is scaled by the Social Security Administration's published factors for a full retirement age of 67, from 70% at age 62 to 124% at age 70 (see the SSA pages on reduction for early claiming and delayed retirement credits). Pension income is not scaled. If you retire before the claim age, the years without Social Security are funded from savings at your full income need, and that cost is added to the target. It is an approximation, not your personal benefit estimate.
  • The score is 100 x (1 - e^(-1.6 x projected savings / target)), rounded. It is an index, not a prediction, and the rough-start line is one illustrated scenario, not a forecast. It does not model taxes, fees, health costs, market swings, longevity, or changes in your plans.
This tool is for educational use only and is not investment, tax, or legal advice, or a recommendation of any product or service. No result is a promise of future outcomes. Investment advisory services offered through Grace Capital Management, LLC, an SEC Registered Investment Adviser. Securities offered through Concorde Investment Services, LLC, member FINRA/SIPC. Grace Capital Management and Concorde Investment Services, LLC are not affiliated entities. CIS does not provide tax or legal advice. Consult the appropriate professional regarding your individual circumstance.

Want to talk it through?

Schedule a conversation to review your own situation.

Frequently Asked Questions

Common Questions

What does the Retirement Readiness Score measure?
It compares the savings you could have at your planned retirement age with a target nest egg, then converts that ratio to a 0-100 index. It is an index for education, not a prediction.
What assumptions does the score use?
A 5% nominal annual return, 2.5% annual inflation (about 2.44% real), yearly savings made at the end of each year and growing with inflation, and a 4% withdrawal rate to size the target nest egg. The return and inflation start at 5% and 2.5% and stay there unless you change them under Advanced assumptions (2% to 8% and 1% to 4%); every assumption is shown on the page. Because every figure is in today’s dollars, level yearly savings in real terms are the same as savings that rise with inflation.
How does the Social Security claim age change the result?
If you pick a claim age, the Social Security part of your benefit is scaled with the factors the Social Security Administration publishes for a full retirement age of 67: 70% at 62, 75% at 63, 80% at 64, 86.7% at 65, 93.3% at 66, 100% at 67, then 108%, 116% and 124% at 68, 69 and 70. Any pension is not scaled. If you plan to retire before the claim age, the model also funds the years before benefits begin from savings. Source: Social Security Administration, ssa.gov. This is an approximation, not your personal estimate from ssa.gov.
How does the spouse or partner option work?
Switching it on adds their income, savings and benefit to your household totals. The model uses the single retirement age you enter for the household and one claim age for the Social Security benefit, which is a simplification.
Why does the model use a 4% withdrawal rate?
A 4% starting withdrawal rate is a common planning rule of thumb, drawn from historical studies. It is a rule of thumb only, not an assurance of any result, and a different rate would change the target nest egg.
What counts as retirement savings?
Include money you have set aside for retirement, such as workplace plans, IRAs and other investment accounts you intend to use. Leave out your home unless you plan to sell it to fund retirement.
Does this tool give investment or tax advice?
No. It is educational only and is not investment, tax or legal advice. Talk with a qualified professional about your own situation.

Stay Informed

Get tax strategies, market insights, and investment updates delivered to your inbox.

By subscribing, you agree to receive email communications from Grace Capital Management. You can unsubscribe at any time. Privacy Policy

Get the Guide

These investments are speculative, illiquid, and involve risk including possible loss of principal; they are available only to verified accredited investors. Distributions are not guaranteed.

By submitting, you agree to be contacted by Grace Capital Management. We do not sell your information; form submissions are processed by our forms provider.