Retirement planning compares projected spending needs with retirement assets, contributions, and other income under explicit assumptions. It does not begin with a universal age benchmark, corpus multiple, or portfolio split.
Quick answer
The Retirement Readiness Planner projects spending and resources using separately entered assumptions. It can show a modeled gap or surplus under those inputs. It cannot predict market returns, inflation, lifespan, tax, or retirement success.
Define the planning horizon
Record the intended retirement age and a longevity horizon for the scenario. Retirement planning requires a horizon/longevity assumption, and actual lifespan can differ. Run more than one horizon when the result is sensitive.
Model spending
Start from current essential spending and decide which costs may stop, continue, or begin in retirement. Healthcare, housing, support for family, and large goals may need separate treatment. Inflation is a scenario assumption, not one universal future rate.
Model resources
Enter only assets intended and available for retirement, together with ongoing contributions and pensions or other contractual income. Account access and withdrawal conditions can differ by product.
Make assumptions visible
Pre-retirement return, post-retirement return, inflation, contribution growth, and withdrawal inputs are scenario assumptions. They are not market forecasts. Compare multiple cases rather than treating the default path as likely.
Constant-return projections do not capture sequence-of-returns risk. Allocation depends on time horizon, spending flexibility, guaranteed income, liquidity needs, loss tolerance, and the role of the assets; this article does not prescribe a split.
Illustrative scenario
Illustrative scenario: enter current spending, retirement ages, a stated horizon, retirement assets, ongoing contributions, contractual income, and explicit inflation and return assumptions. Change one assumption at a time to see which inputs drive the modeled gap.
Common mistakes
- Using an age-based corpus multiple as the target.
- Treating default return or inflation values as predictions.
- Counting assets that are not available for retirement spending.
- Ignoring sequence risk or a longer horizon.
What to do next
Use Retirement Readiness for the broad comparison and Wealth Withdrawal or SWP for deterministic withdrawal mechanics under explicit assumptions.