Quick answer: Retirement readiness depends on your target spending, expected Social Security/pension income, and how much your savings can safely support – not a specific birthday like 65.

The math behind a ‘retirement number’

A common starting framework: estimate your annual spending in retirement, subtract guaranteed income (Social Security, any pension), and multiply the remaining gap by roughly 25 to estimate the portfolio needed to support a 4% initial withdrawal rate – a widely cited (though debated) rule of thumb from retirement research, not a guarantee.

Why age alone is a poor measure

Two people the same age can have completely different retirement readiness depending on savings, debt, health costs, and desired lifestyle. Basing your plan on a target number tied to your own expenses, rather than a generic retirement age, produces a far more accurate picture of when you can actually afford to stop working.

Frequently Asked Questions

Is the 4% withdrawal rule guaranteed to work?
No. It’s a widely cited historical guideline from retirement research, not a guarantee – actual safe withdrawal rates depend on market returns, inflation, and how long your retirement lasts.

Should I still plan around Social Security’s full retirement age?
It matters for benefit sizing, but your personal ‘retirement number’ should be based on your total expenses and assets, with your Social Security claiming age as one input among several.

Source: Social Security Administration – Retirement Planner

Written by Samuel, Certified Public Accountant. Published August 2026.