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