You may know how much money sits in your retirement accounts. You may even have a date circled on the calendar. Yet one question keeps coming back: Am I really ready to retire?
That question cannot be answered by your savings balance alone.
A strong retirement plan must turn savings into monthly income. It must account for taxes, medical bills, home repairs, market losses, and a life that may last for decades. It must also answer a more personal question: What will fill your days when work no longer does?
Only 35 percent of nonretired adults said their retirement savings plan was on track in the Federal Reserve’s report on household finances in 2025. That means doubt about retirement preparation is common.
Important: This test is an educational self assessment. It cannot predict investment returns, health events, tax changes, or how long anyone will live. Consider speaking with qualified financial, tax, legal, and health professionals before making major decisions.
How to Score the Retirement Readiness Test
Give yourself points after each question:
• 2 points: Yes, you have a clear written plan supported by real numbers.
• 1 point: Partly. You have thought about it, but details are missing.
• 0 points: No. You have not reviewed it or do not know the answer.
Keep a list of every answer that earns zero or one point.
Do not change an answer simply because you dislike the score. An honest low score is useful. It shows you what to fix before your paycheck ends.
The test has a maximum score of 22. Still, the total is not the only thing that matters. A zero for health coverage or monthly income can create a serious problem even when the other answers are strong.
1. Do You Know What Retirement Will Cost Each Month?
A retirement budget should begin with what you spend now, not with what you hope to spend later.
Review at least six months of bank and credit card records. A full year is better because it captures insurance bills, holidays, repairs, gifts, and seasonal costs.
Separate your expenses into three groups:
• Required costs: Housing, food, insurance, taxes, utilities, transport, and medical care
• Flexible costs: Restaurants, entertainment, clothing, hobbies, and travel
• Irregular costs: Home repairs, car replacement, dental work, family help, and large purchases
Some work costs may fall after retirement. Commuting and professional clothing may cost less. Other expenses can rise because you have more free time for travel, hobbies, and meals away from home.
The Consumer Financial Protection Bureau recommends reviewing income and spending before making retirement choices. It also warns that active retirement plans, debt, and rising personal health expenses can make retirement cost more than expected.
Take action: Write a sample budget for your first full year of retirement.
Score yourself:
• 2 points if you have a detailed budget based on real spending
• 1 point if you have a rough monthly estimate
• 0 points if you are relying on a guess
2. Can Reliable Income Cover Your Basic Bills?
A large account balance can feel safe. But it does not tell you how much money will arrive each month.
List every source of dependable retirement income:
• Social Security
• Pension payments
• Annuity income
• Rental income after costs
• Part time work
• Other reliable payments
Next, total your required monthly bills. Compare the two numbers.
For example, suppose required expenses total $4,500 a month. Social Security and pension income provide $3,300. Your savings must cover a monthly gap of $1,200, plus taxes and irregular costs.
That is a clearer retirement planning number than simply saying, “I have $600,000.”
Income from investments can change. Dividends can be reduced. Rental properties can sit empty. Part time work may end because of health or family needs. Mark each income source as guaranteed, dependable but changeable, or uncertain.
Take action: Calculate the monthly amount your investments will need to provide during the first year.
Score yourself:
• 2 points if reliable income and planned withdrawals cover your written budget
• 1 point if the plan works but depends on uncertain income
• 0 points if you have not compared income with expenses
3. Have You Chosen a Social Security Claiming Age?
Do not choose a claiming age only because friends retired at that age.
Social Security retirement benefits can generally begin at age 62. Starting early usually means accepting a lower monthly payment. Waiting beyond full retirement age can increase the monthly benefit until age 70. For people born in 1960 or later, full retirement age is 67.
The Social Security Administration states that delayed retirement credits can add 8 percent for each full year benefits are delayed beyond full retirement age, up to age 70.
But waiting is not right for every person. Your choice may depend on:
• Current health
• Family life expectancy
• Need for income
• Other savings
• Plans to keep working
• Spouse and survivor benefits
• Tax effects
Use the retirement estimate in your Social Security Statement. Compare the amounts available at 62, full retirement age, and 70.
A married couple should review both records together. The decision can affect the income available to a surviving spouse later.
Take action: Write down your planned claiming age and the reason behind it.
Score yourself:
• 2 points if you compared several claiming ages and spouse effects
• 1 point if you checked your estimate but have not made a firm choice
• 0 points if you do not know your estimated benefit
4. Could Your Plan Survive a Bad Market Early in Retirement?
Poor market returns are painful at any age. They can be more damaging when they arrive just after retirement.
Once withdrawals begin, you may need to sell investments while prices are low. That leaves fewer assets in the account when markets recover.
Ask what you would do if your investments dropped during your first two years without a paycheck.
A practical plan might include:
• Cash for near term spending
• High quality bonds or other lower risk assets
• Stocks for longer term growth
• Flexible travel and entertainment spending
• A rule for when portfolio withdrawals will be reduced
This does not mean all retirement money belongs in cash. Cash can lose buying power over time. Stocks can support long term growth, but they can also fall sharply. The right mix depends on your spending needs, other income, time frame, and ability to handle losses.
EBRI’s retirement model considers investment returns, health expenses, long term care costs, and the risk of households falling short. That supports testing several conditions rather than relying on one smooth forecast.
Take action: Run your plan with lower returns, higher inflation, and a market loss near retirement.
Score yourself:
• 2 points if your plan includes a market decline and spending response
• 1 point if your investments are spread across several asset types but have not been tested
• 0 points if your plan assumes steady growth every year
5. Do You Have Cash for an Emergency?
Retirement does not stop surprise bills.
A roof may leak. A vehicle may fail. A family member may need urgent help. Dental work can arrive during the same month as an insurance bill.
The Federal Reserve found that 63 percent of adults could cover a $400 emergency using cash or its equivalent in its report covering 2024. The same report noted that emergency savings help families deal with unexpected expenses and changes in income.
Your emergency fund should be separate from money already set aside for property taxes, travel, or next month’s bills.
There is no single cash target that fits everyone. A homeowner with an older roof may need more than a renter with strong insurance. A retiree who depends heavily on investments may want a larger reserve than someone whose pension covers every basic bill.
The CFPB warns that even a small financial shock can lead to lasting debt when no emergency savings are available.
Take action: Choose a cash reserve based on your home, health, insurance, family duties, and income sources.
Score yourself:
• 2 points if you have a separate emergency reserve
• 1 point if you have some cash but it is also needed for normal spending
• 0 points if an emergency would require debt or an unplanned investment sale
6. Is High Interest Debt Still Following You?
Debt does not automatically make retirement impossible. The type, rate, payment, and reason for the debt all matter.
A small fixed mortgage may fit comfortably within a strong income plan. A large credit card balance charging high interest is different.
List each debt with:
• Current balance
• Interest rate
• Monthly payment
• Expected payoff date
• Whether the rate can change
Then compare total debt payments with your expected retirement income.
Be careful about withdrawing a large amount from a traditional retirement account to erase debt. That withdrawal may increase taxable income. It could also leave less invested for future years.
The CFPB notes that more older consumers are carrying debt into retirement. Its research also found that retirees who maintained spending were more likely to have no mortgage or other debt, monthly pension income, and full or maximum Social Security benefits.
That finding shows an association, not proof that every mortgage must be paid before retirement.
Take action: Create a written payoff or payment plan for every debt.
Score yourself:
• 2 points if debt payments fit easily within the retirement budget
• 1 point if the debt is manageable but limits saving or spending
• 0 points if high interest debt has no clear payoff plan
7. Have You Priced Health Care Beyond the Premium?
Medicare is important, but it does not make all health care free.
In 2026, the standard Medicare Part B premium is $202.90 per month. The Part B deductible is $283. After the deductible, people with Original Medicare usually pay 20 percent of the approved cost for covered services when the provider accepts assignment.
Drug coverage has separate costs. No Medicare drug plan can have a deductible above $615 in 2026, though some plans have a lower deductible or none.
A full health care budget may need to include:
• Medicare premiums
• Supplemental or Medicare Advantage plan costs
• Drug coverage
• Deductibles and coinsurance
• Dental care
• Vision care
• Hearing care
• Travel for treatment
• Services that insurance does not cover
People retiring before 65 need another plan for the years before Medicare eligibility. That may involve employer coverage, a spouse’s plan, COBRA, or coverage bought through an insurance marketplace.
Long term support also deserves attention. Medicare does not cover every type of long term personal care. Consider how help would be paid for if you or your partner could no longer manage meals, bathing, transport, or household tasks.
The National Institute on Aging advises families to consider safety, mobility, personal care, support services, and payment sources when planning to remain at home.
Score yourself:
• 2 points if you know your coverage and expected personal costs
• 1 point if you have coverage but have not priced the full cost
• 0 points if there is a gap in coverage or no health care budget
8. Do You Know How Taxes May Change?
Retirement can change where your money comes from, but it does not always make taxes disappear.
Possible taxable income may include:
• Pension payments
• Withdrawals from traditional retirement accounts
• Part of Social Security benefits
• Interest and dividends
• Capital gains
• Rental income
• Work income
Withdrawals from Roth accounts may receive different tax treatment when the rules are met. Selling investments in a regular brokerage account can also create gains or losses.
Traditional IRA and retirement plan owners generally must begin annual required minimum distributions for the year they reach age 73. Some workers may delay distributions from a current employer plan, depending on plan rules and ownership status. Roth IRAs do not require lifetime distributions from the original owner.
Your first retirement year can be unusual if it includes wages, unused leave, a bonus, pension income, and retirement account withdrawals.
Take action: Prepare a basic tax estimate for your first three retirement years.
Score yourself:
• 2 points if taxes are included in your income and withdrawal plan
• 1 point if you know taxes will apply but have not estimated them
• 0 points if your budget treats all retirement income as spendable cash
9. Does Your Home Still Fit the Life You Want?
A house can be both a place to live and one of your largest retirement costs.
Review more than the mortgage. Include:
• Property taxes
• Home insurance
• Repairs
• Heating and cooling
• Yard care
• Stairs and fall risks
• Distance from doctors
• Access to shops and social activities
• Transport if driving becomes difficult
A paid off house still costs money. A smaller home can also carry moving costs, repairs, community fees, higher taxes, or a higher purchase price.
The National Institute on Aging says living at home while aging requires planning for safety, transport, daily activities, personal care, and available support.
Walk through your home as if you had less strength or mobility. Could you reach the bedroom, bathroom, kitchen, and entrance safely? Who would help with maintenance?
Moving before a health crisis may give you more choices. Staying may work well when the home is safe, costs are manageable, and support is nearby.
Take action: Compare the five year cost of staying with the five year cost of moving.
Score yourself:
• 2 points if your home fits your budget, mobility, and support needs
• 1 point if it works now but may become difficult later
• 0 points if housing costs or access problems could threaten the plan
10. Have You and Your Partner Discussed Daily Retirement?
Two people can agree on a retirement date and still expect very different lives.
One partner may want to travel. The other may want to stay near family. One may expect to spend every day together. The other may want private time, hobbies, or part time work.
Talk about practical details before work ends:
• How much can be spent on travel?
• Who will manage bills?
• How will household duties change?
• Will either person keep working?
• How much family support can you afford?
• How much time will you spend together?
• Which activities will remain separate?
Single adults need a version of this conversation too. Identify the people who can provide social contact, emergency help, transport, and honest advice.
Retirement is a major change in routine. The National Institute on Aging lists retirement as one event that can raise the risk of loneliness and social isolation.
Take action: Plan a retirement meeting with your partner or closest support person.
Score yourself:
• 2 points if expectations, spending, roles, and routines have been discussed
• 1 point if you have talked generally but avoided difficult details
• 0 points if each person is making separate assumptions
11. Do You Have a Reason to Get Up Each Morning?
Retirement removes more than a paycheck.
Work may provide structure, movement, goals, friends, status, and a reason to leave the house. When those benefits disappear at once, a person can feel lost even when money is secure.
Create a sample retirement week. Include:
• Physical activity
• Meals and household tasks
• Time with friends or family
• Learning
• Hobbies
• Volunteering
• Faith or community activities
• Quiet time
• Health appointments
Do not fill every hour. Rest and freedom are part of retirement. The goal is to prevent each day from becoming an empty copy of the last one.
The National Institute on Aging reports that social isolation and loneliness are linked with greater risks of depression, heart disease, and cognitive decline. It also notes that regular exercise may help people enjoy more years without pain or disability.
Volunteering can provide social contact and a sense of purpose. A class, walking group, part time role, garden, or regular family duty can do the same.
Take action: Test one retirement day each month before leaving work.
Score yourself:
• 2 points if you have meaningful people, activities, and routines outside work
• 1 point if you have a few ideas but no weekly plan
• 0 points if work currently provides nearly all your structure and social contact
What Your Retirement Readiness Score Means
Add your points from all 11 questions.
| Total Score | What It Suggests | Best Next Step |
|---|---|---|
| 18 to 22 | You have a strong base, though details may still need work. | Review every answer below two and test the plan once a year. |
| 12 to 17 | Several parts are in place, but weak spots could affect retirement. | Delay major decisions until income, health care, taxes, and spending are clearer. |
| 0 to 11 | Important parts of the plan remain uncertain. | Build a written plan before selecting a final retirement date. |
I’m Austin Becker, an advocate for living life with intention and resilience. I write for men who are actively navigating life’s major transitions, tackling the realities of reinvention and finding renewed purpose with grit and honesty. I believe that personal growth doesn’t have a deadline it’s about continuously gearing up for the chapters that matter most.
Through my work, I aim to strip away the clichés of modern manhood, offering practical, no-nonsense insights on health, mindset, and legacy for those who want to move forward with strength and clarity.