Retirement Readiness Calculator

Use this calculator to score retirement readiness by comparing projected savings with a target amount.

What this calculator does

The retirement readiness calculator projects savings to retirement age and compares the result with your target. It turns the result into a readiness score and status label.

It uses:

• current age
• retirement age
• current savings
• monthly contribution and target amount

Retirement Readiness Formula

Readiness Score = (Projected Savings ÷ Target Amount) × 100

Where:

• Projected Savings = future value of savings and contributions
• Target Amount = desired retirement balance
• Readiness Score = percentage of target covered
• Gap = target amount minus projected savings

Example calculation

If:

• Target amount = 1,500,000
• Projected savings = 1,200,000
• Readiness score = 1,200,000 ÷ 1,500,000 × 100
• Readiness score = 80%

Then:

• Status = Nearly There
• Gap = 300,000
• The plan is close but under target
• More saving or more time may be needed

The readiness score is 80%.

What is retirement readiness?

Retirement readiness measures how prepared you are for retirement based on projected assets versus a target. It is a simple way to summarize progress.

Why retirement readiness matters

• turns a long-term plan into a clear score
• highlights whether action is needed
• helps compare scenarios quickly
• supports annual retirement reviews

When to use this calculator

• checking progress toward a retirement target
• reviewing contribution levels
• comparing retirement ages
• preparing for a financial planning discussion

Common mistakes

• treating the score as a guarantee
• setting a target without expense planning
• ignoring inflation and taxes
• checking readiness too rarely

Retirement readiness vs retirement shortfall

Retirement readiness is a percentage score. Retirement shortfall is the money gap below the target.

Both are useful for understanding the same retirement plan.

FAQs

What is retirement readiness?

Retirement readiness is a measure of projected savings compared with a retirement target.

How do you calculate retirement readiness?

Divide projected savings by the target amount and multiply by 100.

What is a good retirement readiness score?

A score of 100% or more means projected savings meet or exceed the target.

What is the difference between readiness and shortfall?

Readiness is a percentage. Shortfall is the amount of money still missing.