Retirement Planning
Are You on Track for 2026?
Project your retirement readiness across conservative, base, and optimistic scenarios. Built around the 4% rule, Social Security claiming math, and SECURE 2.0 RMD rules — for Americans planning to retire between 55 and 70.
Quick answer: Using the 4% rule, you need 25× your target annual spending. At $80,000/year that's $2.0M; at $100,000/year, $2.5M. Social Security typically covers ~40% of pre-retirement income for the median worker, lowering what your personal portfolio has to fund. SECURE 2.0 sets RMD age at 73 (born 1951–59) or 75 (born 1960+).
Your retirement readiness
Readiness Score
100/100
4% rule target
$2,000,000
25 years to retire
Conservative
$1,326,132
−2pp return, −10% saves
Base
$2,073,920
Your inputs as-entered
Optimistic
$3,261,113
+2pp return, +10% saves
Illustrative projection only — not a forecast or financial advice. Score = base projection ÷ 4% rule target, capped at 100. Real-world outcomes depend on market returns, inflation, healthcare costs, Social Security claiming choices, and life events that no single-rate model can capture. Verify with a licensed CFP or fiduciary RIA.
Retirement by age — what the math says
Five common target ages, with the specific planning consideration that dominates each.
Retire at 50 — Lean FIRE territory
15 years before Social Security earliest claim age (62). Needs the largest portfolio relative to spending because there is zero government supplement during the bridge. Lean FIRE targets $30,000–$45,000/year spending and a $750K–$1.1M portfolio. 401(k) withdrawals before 59½ trigger a 10% penalty unless you use Rule 72(t) substantially equal periodic payments or a Roth conversion ladder.
Retire at 55 — The Rule of 55 unlock
The IRS "Rule of 55" allows penalty-free withdrawals from the 401(k) of the employer you separated from in or after the year you turn 55. Does not apply to IRAs. Still 7 years before earliest Social Security, so the bridge is shorter than retiring at 50 but you still front-load expenses from the portfolio. Healthcare is the biggest variable — ACA marketplace plans bridge to Medicare at 65.
Retire at 60 — Five-year bridge to Medicare
Penalty-free IRA and 401(k) withdrawals (post-59½). 5 years to Medicare and 2 years to earliest Social Security at 62. The healthcare bridge dominates planning — budget $1,200–$2,500/month per person for ACA marketplace coverage at 400% federal poverty level or above. This is also the window where Roth conversions are most powerful before RMDs start at 73 or 75.
Retire at 65 — Traditional anchor age
Medicare kicks in. Social Security Full Retirement Age (FRA) is 66 or 67 depending on birth year — claiming at 65 typically reduces benefit by 6–13%. The Fidelity 10×-by-67 benchmark applies here. The 4% rule is most robust at this age because the horizon is ~30 years. Defined-benefit pensions, where they exist, usually kick in at full value.
Retire at 70 — Maximum Social Security
Social Security delayed-retirement credits reach their cap at 70 — roughly 132% of FRA benefit. RMDs already in effect for anyone born 1951–59 (which is everyone retiring at 70 today). Smaller portfolio needed because every dollar of Social Security is inflation-indexed and lifetime — the strongest hedge against longevity risk that exists in the US system.
The 4% rule, in plain language
In year one of retirement, withdraw 4% of your portfolio. In every subsequent year, withdraw the same dollar amount adjusted up for inflation. Historical US stock-and-bond data from 1926 onwards suggests this approach has a high probability of the money lasting 30 years.
| Target annual income | Portfolio needed (4% rule) | 3.5% (more conservative) |
|---|---|---|
| $40,000/yr | $1,000,000 | $1,142,857 |
| $60,000/yr | $1,500,000 | $1,714,286 |
| $80,000/yr | $2,000,000 | $2,285,714 |
| $100,000/yr | $2,500,000 | $2,857,143 |
| $150,000/yr | $3,750,000 | $4,285,714 |
| $200,000/yr | $5,000,000 | $5,714,286 |
The 4% rule was developed by William Bengen (1994) and reinforced by the Trinity Study (1998). It assumes a 50–75% equity allocation. Recent research from Morningstar suggests a starting safe rate closer to 3.7%–4.2% given current valuations and bond yields. Sequence-of-returns risk in the first 5–10 years matters more than the long-run average — a bad early stretch is harder to recover from than a bad late stretch.
Social Security claiming strategy
Full Retirement Age (FRA) is 66 for anyone born 1943–1954, 66 plus 2 months per year for 1955–1959, and 67 for anyone born 1960 or later. Claim earlier than FRA and your benefit is permanently reduced; claim later and it permanently increases up to age 70.
| Claim age | % of FRA benefit | Rationale |
|---|---|---|
| 62 (earliest) | ~70% | Need cash early or poor health expectation |
| FRA (66–67) | 100% | Baseline — full earned benefit |
| 70 (max) | ~132% of FRA | Longevity hedge — every year of delay adds 8% |
The break-even age for delaying from 62 to 70 is typically 80–82. Past that, delaying wins. Couples should also model the survivor benefit — the higher earner's claim age locks in the survivor benefit for life, which makes delaying especially valuable in mixed-longevity households.
Required Minimum Distributions (SECURE 2.0)
RMDs begin at age 73 for anyone born 1951–1959, and at age 75 for anyone born 1960 or later. They apply to Traditional 401(k), 403(b), 457(b), Traditional IRA, SEP IRA, and SIMPLE IRA accounts. Roth IRAs have no RMDs during the owner's lifetime. As of SECURE 2.0 (2024), Roth 401(k)s also have no RMDs.
- First RMD can be deferred to April 1 of the year after you turn 73 — but doing so stacks two RMDs into one tax year, often a bad tax outcome.
- Calculation: prior-year-end balance ÷ life expectancy factor from the IRS Uniform Lifetime Table. At 73 the divisor is 26.5 (~3.77% withdrawal); at 90 it is 12.2 (~8.2%).
- Missing an RMD: SECURE 2.0 reduced the penalty from 50% to 25%, and to 10% if corrected within two years. Still steep — set up automated quarterly distributions if you are prone to missing.
- Qualified Charitable Distributions: direct transfers from IRA to charity (up to $108,000 in 2026, indexed) count toward your RMD and are excluded from AGI.
Run the supporting calculators
Each one drills into a specific piece of the plan above.
401(k) Calculator
Project your 401(k) at retirement with the 2026 contribution limits and employer match.
Roth vs Traditional IRA
Compare at your current vs expected retirement marginal rate. Tax math, not vibes.
HSA Calculator
Triple-tax-advantaged. The most underused retirement vehicle in America.
RMD Calculator
Uniform Lifetime Table from age 73, with the SECURE 2.0 penalty math.
Coast FIRE Calculator
Smallest balance that grows to your FIRE number with zero further contributions.
Net Worth Calculator
See your percentile vs the Federal Reserve SCF 2022 distribution by age.
Average Net Worth by Age (US)
Full p10–p99 thresholds by US age group, Federal Reserve data.
What-If Scenarios
Recession, rate hike, save-more — projected on your numbers.
Track your real retirement plan in Richify
Connect your accounts, set your retirement age, and watch your readiness score update automatically as your contributions and market values change.
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Frequently asked questions
How much do I need to retire in the US?
Using the 4% rule, you need 25× your desired annual retirement spending. At $60,000/year you need $1.5M; at $80,000/year you need $2.0M; at $100,000/year you need $2.5M. Social Security replaces roughly 40% of pre-retirement income for the median worker, which lowers what your personal portfolio has to cover. The exact number depends on your retirement age, expected investment return, healthcare costs, and whether you carry a mortgage into retirement.
Am I on track to retire at 65?
A common benchmark from Fidelity is to have 1× your salary saved by 30, 3× by 40, 6× by 50, 8× by 60, and 10× by 67. So if you earn $80,000 at age 40, having around $240,000 saved keeps you on track. The calculator above projects your specific balance forward using your contributions and expected return — use the result alongside the milestone benchmarks for a fuller picture.
What is the 4% rule?
The 4% rule, developed from the Bengen and Trinity studies, says you can withdraw 4% of your portfolio in year one of retirement, adjust the dollar amount for inflation each subsequent year, and have a high probability of your money lasting 30 years. It was based on historical US stock and bond returns. Recent research suggests 3.5%–4.5% as a sensible range depending on starting valuations, life expectancy, and bond yields.
When should I claim Social Security?
Full Retirement Age (FRA) is between 66 and 67 depending on your birth year. Claiming at 62 reduces your benefit by about 30%; claiming at 70 increases it by roughly 32% above FRA. The optimal age depends on life expectancy, spousal benefits, marginal tax bracket, and whether you can fund living expenses from your portfolio between 62 and 70. The break-even age for delaying from 62 to 70 is roughly age 80–82 for most people.
What is the Required Minimum Distribution (RMD) age?
Under SECURE 2.0, RMDs start at age 73 for anyone born 1951–1959 and at age 75 for anyone born 1960 or later. The first RMD can be deferred to April 1 of the year after you turn 73 (or 75), but doing so means two RMDs in one tax year. Roth IRAs have no RMDs during the owner's lifetime. The penalty for missing an RMD dropped from 50% to 25% under SECURE 2.0, and to 10% if you correct the miss within two years.
Should I prioritise a 401(k) or a Roth IRA?
If your employer offers a 401(k) match, contribute enough to get the full match first — that is an immediate 50–100% return. Beyond the match, the Roth IRA vs Traditional 401(k) decision depends on whether you expect a higher or lower marginal tax rate in retirement. Higher expected retirement bracket: favour the Roth. Lower expected retirement bracket: favour the Traditional. Most people split the two for tax diversification.
How does inflation affect retirement planning?
Inflation reduces the purchasing power of your portfolio over time. At 3% annual inflation, $1 today buys roughly $0.74 in 10 years and $0.55 in 20 years. Plan in either nominal dollars (apply your expected return as nominal) or real dollars (apply return minus inflation). The 4% rule already adjusts withdrawals for inflation each year. Social Security, military and federal civil-service pensions are also indexed to inflation; most private pensions are not.
What is the difference between FIRE and traditional retirement?
Traditional retirement assumes leaving work between 62 and 70 and drawing on Social Security plus an employer pension or 401(k). FIRE (Financial Independence, Retire Early) aims to reach a portfolio of 25× annual expenses well before 65, often through aggressive saving (40–70% of income) and low-cost index investing. Lean FIRE targets a smaller portfolio ($500K–$1M); Fat FIRE targets $2.5M+ for higher spending. Either path uses the same arithmetic — only the savings rate and target portfolio change.
Do I need a financial advisor for retirement planning?
It depends on complexity. A simple plan (one or two retirement accounts, a paid-off house, Social Security and an emergency fund) can be self-managed using tools like this one. Advisors add the most value when you have significant taxable assets, equity compensation, business ownership, special-needs planning, or are within 5 years of retirement and making one-way decisions (pension elections, Roth conversion ladders, Social Security claiming). Fee-only fiduciary advisors (CFP, RIA) usually charge 0.5%–1% of assets per year.
Is Richify financial advice?
No. Richify is a personal-finance education, tracking, and projection tool. It does not provide financial, investment, or tax advice and is not an SEC-registered investment adviser. The retirement-readiness calculator on this page produces an illustrative projection based on the figures you enter and simplified assumptions — not a forecast or guarantee. Verify your circumstances with a licensed financial professional (CFP, CFA, or fiduciary RIA) before acting on any projection.