Strategy

Retirement readiness

Retiring at 65 is not currently supported under the saved spending target and current assumptions.

Plan Status: FragileHigh confidenceHigh Inflation
Target-age readiness
Not feasible
Retire now
Not assessed as ready now
Target retirement age
65
Safe annual spending
$65,160
Planned spending
$120,000
Overall recommendation
Retirement at age 65 is not yet supported at the current spending target. Next, decide on Larger cash buffer.
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Plan Source
Manual Inputs

Manual input

Last Updated
Mar 16, 2026

Financial snapshot updated from manual household detail.

Confidence
High

The current plan needs either more margin, later retirement, or lower spending.

Next action

Review RMD exposure

Estimated RMD pressure score is 46%.

Summary mode

Compact strategy summary

Retirement age
70
Safe spending
$65,160
Top risk
Higher inflation and lower real returns make early claiming less forgiving.
Next decision
Larger cash buffer
What the result means

Readiness explanation

Retire at target age: Retiring at 65 is not currently supported under the saved spending target and current assumptions.

Retire now: This page’s main verdict is about retirement at the target age of 65, not about retiring immediately at age 60.

Overall recommendation: Retirement at age 65 is not yet supported at the current spending target. Next, decide on Larger cash buffer.

Why: The model puts supported annual spending near $65,160, about $54,840 below the $120,000 plan. That shortfall is large enough that waiting, spending less, or changing other assumptions materially improves the result. This is an at-target assessment for age 65, not an immediate-retirement answer at age 60.

What is binding right now:

  • Spending support is at or below the current target, so the plan has almost no room for higher withdrawals.
  • Modeled success probability is 64%, which is only modestly above the planner’s viability floor.
  • Stress durability is 51%, so early market stress still narrows the plan noticeably.
  • Funded ratio is 0.54, which supports the plan but does not leave a large capital cushion.

Calibration note: The current modeled safe spending is about 3.7% of investable assets, which is closer to a 4.0% reference baseline than to a 3.5% baseline.

Top risks: Higher inflation and lower real returns make early claiming less forgiving. If bridge pressure falls below -8 points, earlier claiming becomes more competitive.

What changes the answer: If bridge pressure falls below -8 points, earlier claiming becomes more competitive.

Strongest alternative: If you want to compare another path, look at Retire at 65.

Decision focus

Portfolio allocation change

Increase near-term liquidity so bridge years do not depend too heavily on portfolio sales. This should move the portfolio closer to the balanced retirement-income strategy. The current high-inflation regime makes inflation resilience and bridge stability more important.

Recommended option
Larger cash buffer
Priority
41
Expected impact
A more resilient allocation or larger cash buffer could improve stress durability by about 13.5 points.
Sensitivity
If stress durability closes enough to restore the resilience buffer, the urgency to rebalance falls.
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System transparency

Inputs, outputs, and key assumptions

Planning engine inputs

Current investable assets: $1,750,000

Annual spending goal: $120,000

Social Security claim age assumption: 67

Sources used

Financial snapshot updated from manual household detail.

Sources: Manual input

Readiness assumptions

Success probability: 77%

Funded ratio: 74%

Inflation regime: High Inflation with 4.5% inflation.

Return and stress regime: Returns assume about 5.5% equity, 2.5% bonds, 3.4% cash, with a 16% stress haircut.

Planning horizon: Probabilistic testing runs a 30-year household horizon through age 95. The deterministic baseline does not use a separate spouse-specific terminal age.

Healthcare treatment: Healthcare costs are not modeled as a separate pre-Medicare insurance line here; they are assumed inside annual spending, with location healthcare adjustments layered onto the scenario.

Social Security basis: Social Security uses the entered annual benefit at claim age 67, plus the partner annual benefit input.

Housing treatment: Home value is tracked, but baseline retirement readiness is driven by investable assets and spending. Home equity only changes readiness if a housing decision explicitly uses it.

Viability threshold: The baseline is treated as viable when funded ratio is at least 1.00, success probability is at least 75%, and stress durability is at least 62%.

Baseline readiness is evaluated for retirement at age 65, not for immediate retirement at age 60.

Inflation is modeled at 4.5% with spending pressure adjustment 5.0%.

Modeled success is 64% with funded ratio 0.54.

High Inflation uses 4.5% inflation, 5.5% stock returns, and 2.5% bond returns for planning.

Benchmark calibration

Current modeled safe spending: $65,160

Modeled safe spending rate: 3.7% of investable assets

3.0% reference baseline: $52,500

3.5% reference baseline: $61,250

4.0% reference baseline: $70,000

The current modeled safe spending is about 3.7% of investable assets, which is closer to a 4.0% reference baseline than to a 3.5% baseline.