Retirement Readiness Quiz

What This Score Means

Your retirement readiness score reflects how well-prepared you are across six essential areas. Scores are grouped into tiers:

• 80–100 — Well Prepared: You have a strong retirement plan in place across most or all categories. Continue monitoring and fine-tuning.
• 60–79 — On Track: You're heading in the right direction but have room for improvement in some areas. Focus on the weaker categories identified above.
• 40–59 — Needs Attention: Several areas of your retirement plan need work. Prioritize the recommendations provided and consider consulting a financial advisor.
• 0–39 — At Risk: Significant gaps exist in your retirement preparation. Taking action now is critical — start with the highest-priority recommendations.

Savings & Investments

A common rule of thumb is to save 10× your annual income by age 67. Milestones along the way: 1× by 30, 3× by 40, 6× by 50, and 8× by 60. In retirement, a well-diversified portfolio — typically a mix of stocks, bonds, and other assets — helps manage risk while maintaining growth potential. As you age, gradually shifting toward more conservative allocations can protect against market downturns when you have less time to recover.

Income Planning

The 4% rule is a widely cited guideline suggesting you can withdraw 4% of your portfolio in the first year of retirement, then adjust for inflation, with a reasonable chance your savings last 30 years. However, a personalized withdrawal strategy that accounts for tax efficiency — drawing from taxable, tax-deferred, and Roth accounts in the right sequence — can significantly reduce your lifetime tax burden. Having multiple income streams (Social Security, pension, annuities, part-time work) provides stability and reduces reliance on any single source.

Healthcare Costs

Healthcare is one of the largest expenses in retirement. A 65-year-old couple retiring today can expect to spend an estimated $315,000 or more on healthcare throughout retirement (Fidelity estimate). Medicare begins at 65, but it doesn't cover everything — dental, vision, hearing, and long-term care are largely excluded. A Medigap or Medicare Advantage plan can fill coverage gaps. If you're still working, maximizing HSA contributions provides triple tax advantages and funds that can be used tax-free for medical expenses in retirement. Long-term care insurance or dedicated savings for potential nursing care is also worth evaluating.

Social Security Strategy

When you claim Social Security has a major impact on your lifetime benefits. Claiming at 62 reduces your benefit by up to 30% compared to your full retirement age (66–67). Waiting until 70 increases it by 24–32% beyond your full retirement age amount — that's up to 77% more than claiming at 62. The breakeven point is typically around age 78–80. Married couples should also consider spousal benefits, which can be up to 50% of the higher earner's full retirement age benefit. Up to 85% of Social Security benefits may be taxable depending on your combined income.

Managing Debt

Entering retirement debt-free — or with minimal, low-interest debt — gives you more flexibility and reduces the income you need to cover fixed expenses. High-interest debt (credit cards, personal loans) should be eliminated before retirement. The mortgage question is more nuanced: if your mortgage rate is low and your investments earn more, it may make sense to keep the mortgage. However, many retirees prefer the peace of mind of being mortgage-free. A good target is keeping total debt-to-income below 28% of your retirement income.

Estate Planning Essentials

At minimum, every retiree should have four documents: a will, a durable power of attorney, a healthcare directive (living will), and up-to-date beneficiary designations on all accounts. Beneficiary designations on retirement accounts and insurance policies override your will, so keeping them current is critical. Review your estate plan after major life events (marriage, divorce, death of a beneficiary, significant asset changes). Annual gifting — currently up to $18,000 per person per year — can reduce your taxable estate while helping loved ones during your lifetime.

Methodology

This quiz evaluates six categories, each with two multiple-choice questions (scored 0–10) and one numeric input (scored 0–10 based on thresholds). Each category's raw score (0–30) is normalized to a 0–100 scale. Your overall score is the average of all six category scores. The Debt & Expenses numeric question uses the ratio of your income to expenses rather than an absolute threshold. This assessment is designed to identify areas of strength and areas needing improvement — it is not a comprehensive financial plan.

Related Tools

• Retirement Savings Calculator — Run detailed projections on your nest egg growth
• Retirement Income Gap Calculator — Check if your income sources cover your spending goals
• Healthcare Cost Estimator — Estimate one of retirement's biggest expenses in detail