How Your Retirement Readiness Score Works
Your score compares two numbers: what you will have versus what you need.
The calculator projects your savings balance at your target retirement age using compound growth and monthly contributions. It then applies the 4% rule to estimate how much monthly income that balance can support. Add your expected Social Security benefit. Compare that total to your income goal.
A score of 80 or above means you are on track. A score below 60 means a real gap exists. The calculator shows you three ways to close it: save more, retire later, or adjust your spending goal.
The benchmark for "on track" comes from Fidelity's savings guidelines: 1x salary by 30, 3x by 40, 6x by 50, 8x by 60, 10x by retirement at 67.
The 4% Rule: The Foundation of Retirement Planning
The 4% rule, also known as the Bengen Rule, was developed by financial planner William Bengen in 1994 using historical stock and bond returns from 1926 onward. It states that retirees can withdraw 4% of their portfolio in year one, then adjust that withdrawal for inflation each subsequent year, and have a high probability of the portfolio lasting 30 years. A $1 million portfolio supports $40,000 per year in retirement income, about $3,333 per month. More conservative planners use 3% to extend confidence to 40+ year retirements; more aggressive planners use 5%.
2026 Retirement Contribution Limits
- 401(k), 403(b), 457(b): $24,500 standard limit
- 401(k) catch-up (age 50+): $32,500 total
- 401(k) super catch-up (age 60-63, SECURE 2.0): $35,750 total
- IRA / Roth IRA: $7,500 standard limit
- IRA catch-up (age 50+): $8,500 total
- Roth IRA phase-out: $153,000-$168,000 single / $242,000-$252,000 married
- SIMPLE IRA: $17,000 standard limit
Source: IRS Notice 2025-67
How Much Should I Save for Retirement by Age?
If you want a quick benchmark instead of a full projection, Fidelity publishes savings milestones expressed as a multiple of your salary. They assume you start saving 15% of income beginning at age 25, including any employer match, and retire at 67. Falling behind a milestone does not mean you cannot recover; it tells you how urgently to raise your savings rate.
| Age | Savings benchmark | Example: $80,000 salary |
|---|---|---|
| 30 | 1x salary | $80,000 |
| 35 | 2x salary | $160,000 |
| 40 | 3x salary | $240,000 |
| 45 | 4x salary | $320,000 |
| 50 | 6x salary | $480,000 |
| 55 | 7x salary | $560,000 |
| 60 | 8x salary | $640,000 |
| 67 | 10x salary | $800,000 |
Source: Fidelity Investments savings guidelines
How Much Money Do I Need to Retire?
The fastest way to answer "how much money do I need to retire" is the 25x rule, which is just the 4% rule flipped around: multiply the annual income you will need from your portfolio by 25. If you need $40,000 per year, the answer is $1 million. If you need $60,000 per year, the answer is $1.5 million. A $1 million retirement calculator answer of $40,000 per year is not a coincidence; it is the same formula.
Two adjustments make this number personal. First, subtract guaranteed income: a $2,000 monthly Social Security benefit supplies $24,000 per year, so a couple needing $64,000 total only needs $40,000 from savings, or a $1 million portfolio. Second, remember taxes: 401(k) and traditional IRA withdrawals are taxable, so a $40,000 gross withdrawal delivers less spendable income than a Roth withdrawal would. Our retirement income calculator runs the full drawdown year by year, and the FIRE calculator applies the same math to an early retirement date.
Ready to pressure-test your own number? Enter your figures in the calculator above and compare the three scenarios it generates. Most people find that a two-year delay in retirement or a 2% bump in savings moves their readiness score more than any investment change.