Spring is the perfect time for a financial checkup. Tax season just revealed your true income picture, markets have had a quarter to set the tone, and you have time to make adjustments before year-end.
If you're within 10 years of retirement, these five numbers determine whether you're on track — and exactly what to fix if you're not.
Updated April 2026 — All thresholds, limits, and benchmarks current for 2026 tax year.
Number 1: Your Savings Rate (Target: 20%+ if Behind)
Your savings rate is the single most powerful lever you have before retirement. It matters more than investment returns, market timing, or any financial product.
How to calculate it: Total annual retirement contributions ÷ Gross annual income × 100
Example: $30,000 saved ÷ $150,000 income = 20% savings rate
2026 Contribution Limits
| Account | Under 50 | Age 50–59 | Ages 60–63 (SECURE 2.0) | Age 64+ |
|---|---|---|---|---|
| 401(k) | $23,500 | $31,000 | $34,750 | $31,000 |
| IRA | $7,000 | $8,000 | $8,000 | $8,000 |
| HSA (family) | $8,550 | $9,550 | $9,550 | $9,550 |
The SECURE 2.0 super catch-up for ages 60–63 lets you contribute an extra $11,250 to your 401(k) — that's $3,750 more than the standard over-50 catch-up. If you're in this age window, maximize it.
What Good Looks Like
| Years to Retirement | Minimum Savings Rate | Ideal Savings Rate |
|---|---|---|
| 10+ years | 15% | 20%+ |
| 5–10 years | 20% | 25%+ |
| Under 5 years | 25% | 30%+ (including catch-up) |
If you're behind: Every $500/month increase in savings adds roughly $35,000 over 5 years (assuming 7% returns). Small increases compound dramatically.
Number 2: Your Investable Net Worth
Your investable net worth is the money that will actually fund your retirement — not your total net worth.
How to calculate it: Total retirement accounts + Taxable investment accounts + Cash savings − Debt (excluding mortgage if staying)
What to include:
- 401(k), 403(b), 457 balances
- Traditional and Roth IRA balances
- Taxable brokerage accounts
- HSA balance (if used for retirement)
- Cash savings above your emergency fund
What to exclude:
- Home equity (unless you plan to sell/downsize)
- Car values
- Collectibles, jewelry, or business ownership you can't easily liquidate
- Future inheritance
Benchmarks by Age (Investable Assets)
| Age | Minimum Target | On-Track Target | Ahead of Schedule |
|---|---|---|---|
| 50 | 4× salary | 6× salary | 8× salary |
| 55 | 6× salary | 8× salary | 10× salary |
| 60 | 8× salary | 10× salary | 12× salary |
| 65 | 10× salary | 12× salary | 15× salary |
Example: Age 55, earning $120,000/year → On-track target is $960,000 in investable assets.
Number 3: Your Social Security Estimate
Social Security will likely cover 30–50% of your retirement income. The exact amount depends on when you claim:
How to check: Create or log into your account at ssa.gov/myaccount. Your personalized estimate shows projected benefits at ages 62, 67, and 70.
The Claiming Decision
Model your own retirement scenarios
See how market volatility impacts your plan with RetirePro's free Monte Carlo simulator.
Try It Free →| Claim Age | Benefit vs. Full (Age 67) | Monthly Estimate* | Lifetime Breakeven vs. 62 |
|---|---|---|---|
| 62 | 70% of full | ~$1,750 | N/A |
| 67 (FRA) | 100% of full | ~$2,500 | Age 78 |
| 70 | 124% of full | ~$3,100 | Age 82 |
Estimates based on $2,500 FRA benefit; your actual amount varies.
Key Decisions to Make This Spring
- Married couples: Model both spouses' claiming strategies together — spousal benefits and survivor benefits change the math significantly
- If you'll keep working past 62: Claiming early while earning above $22,320/year triggers benefit withholding
- Health considerations: If family history or health concerns suggest shorter longevity, earlier claiming may make sense
- Tax planning: Social Security income can be 0–85% taxable depending on your total income
Action item: Pull your SSA statement this week. Enter the numbers into RetirePro to model different claiming ages against your full retirement picture.
Number 4: Your Projected Healthcare Costs
Healthcare is the expense most pre-retirees underestimate by the largest margin. Fidelity's 2026 estimate: the average 65-year-old couple needs $330,000 for healthcare in retirement (not including long-term care).
Your Annual Healthcare Budget at 65
| Component | Monthly Cost (per person) | Annual |
|---|---|---|
| Medicare Part B | $185 | $2,220 |
| Medigap Plan G | $150–$300 | $1,800–$3,600 |
| Part D (drugs) | $30–$80 | $360–$960 |
| Dental | $30–$60 | $360–$720 |
| Vision | $15–$30 | $180–$360 |
| Out-of-pocket | $100–$400 | $1,200–$4,800 |
| Total per person | $510–$1,055 | $6,120–$12,660 |
IRMAA Surcharges (High Earners Pay More)
If your Modified Adjusted Gross Income (MAGI) exceeds certain thresholds, Medicare premiums increase significantly:
| MAGI (Single) | MAGI (Married) | Part B Monthly | Part D Surcharge |
|---|---|---|---|
| ≤ $106,000 | ≤ $212,000 | $185.00 | $0 |
| $106,001–$133,500 | $212,001–$267,000 | $259.00 | $13.70 |
| $133,501–$167,000 | $267,001–$334,000 | $370.00 | $35.50 |
| $167,001–$200,000 | $334,001–$400,000 | $480.90 | $57.30 |
| ≥ $200,001 | ≥ $400,001 | $591.90–$628.90 | $79.00–$85.80 |
Why this matters now: IRMAA uses income from two years prior. Your 2026 income determines your 2028 Medicare premiums. If you're retiring soon, manage your income carefully in the years before and after you enroll.
The Early Retirement Healthcare Gap
If you retire before 65, you need to bridge the gap before Medicare:
- COBRA: Continue employer coverage for 18 months (expensive — $600–$2,000/month)
- ACA Marketplace: Income-based subsidies can help; coverage averages $400–$800/month after subsidies
- Spouse's employer plan: If your spouse is still working, use their coverage
- Health sharing ministries: Alternative option for some (not insurance, limited coverage)
Action item: Get quotes for your specific healthcare scenario. This number changes your retirement budget dramatically.
Number 5: Your Withdrawal Rate (Target: 3.5–4.5%)
Your withdrawal rate determines how fast you'll draw down your portfolio. Too high and you risk running out; too low and you underuse the wealth you built.
How to calculate it: Annual spending need − Guaranteed income (SS + pension) = Portfolio withdrawal needed Portfolio withdrawal needed ÷ Total investable portfolio = Withdrawal rate
Example:
- Annual spending: $72,000
- Social Security (combined): $42,000
- Portfolio withdrawal needed: $30,000
- Portfolio: $750,000
- Withdrawal rate: 4.0%
Withdrawal Rate Guidelines for 2026
| Withdrawal Rate | Risk Level | Best For |
|---|---|---|
| 3.0–3.5% | Very conservative | Early retirees (55–60), want margin of safety |
| 3.5–4.0% | Conservative | Standard retirees (62–65) |
| 4.0–4.5% | Moderate | Retirees with pension/guaranteed income backup |
| 4.5–5.0% | Aggressive | Late retirees (70+) or those with fallback assets |
| 5.0%+ | High risk | Only if substantial guaranteed income covers essentials |
Key insight: The "safe" withdrawal rate depends on your investment mix, retirement length, and flexibility. A 4% rate worked historically for 30-year retirements, but if you're retiring at 55, you may need a 40-year timeframe — which calls for 3.5% or lower.
Your Spring Action Plan
- Week 1: Calculate your current savings rate. Can you increase contributions by even $200/month?
- Week 2: Calculate your investable net worth. Compare to the benchmarks above.
- Week 3: Log into ssa.gov and pull your Social Security estimate. Model claiming at 62, 67, and 70.
- Week 4: Research healthcare costs for your specific situation. Get Medigap and ACA quotes.
- Week 5: Calculate your projected withdrawal rate. Is it under 4.5%?
Run Your Numbers in RetirePro
RetirePro calculates all five of these numbers — and shows you how they interact:
- Enter your savings and income → See your investable net worth and projected growth
- Model Social Security claiming → Compare ages 62, 67, and 70 against your total plan
- Include healthcare costs by age → See the real impact on your retirement budget
- Run Monte Carlo simulations → Test your withdrawal rate against 1,000 market scenarios
- Get your success probability → Know the odds your money lasts through your full retirement
Don't wait until December to discover you're off track. Spring is the time to adjust — you still have 8+ months to improve your numbers before year-end.
Key Takeaways
- Savings rate is your most powerful pre-retirement lever — target 20%+ if behind
- Investable net worth (not total net worth) is what funds retirement
- Social Security timing can mean $100,000+ difference over your lifetime
- Healthcare costs $6,000–$12,000+/year per person at age 65 — plan for it
- Withdrawal rate should stay at 3.5–4.5% for most retirees
- Run all five numbers in RetirePro to see how they work together