1. Review your score

Your plan strength score is an indicator of cash flow strength throughout your plan. If your income covers expenses more than 95% of the time in future years, your Plan Strength Score is "Great." If your income covers expenses less than 95% of the time in future years, your score may be "Good," "Fair," or "Needs Works." You will have a different Plan Strength Score for optimistic and pessimistic assumptions.

2. Review your savings projections

The "estimated age savings will run out" indicator tells you if your cash and investment savings are projected to last through your longevity age.

Key Indicators

Key Indicators Image

3. Review the Lifetime Retirement Projections Chart

Review the Lifetime Retirement Projection chart columns to see where your income sources are coming from per year.

  • Notice which time periods income sources are variable, such as work income.

  • Notice which time periods income sources are guaranteed, such as Social Security, Annuities, and Pensions.

  • Notice which years you are drawing your savings down.

  • Notice which years (if any) you have a deficit or are spending more than you have in the bank.

4. Stress test your plan using pessimistic assumptions

See how your score, indicators, and chart changes when you view your plan under pessimistic assumptions.

If you are comfortable with your Plan Strength score, if your savings are projected to last, and you are comfortable with the allocation and timing of income streams, then you are on track!

What Next?

If you want to improve your Plan Strength score, increase the chance your savings will last, or be less dependent on savings drawdowns...there are ways to improve your situation. You can change your retirement trajectory by making lifestyle changes to earn more, work longer, spend less, and invest using optimization strategies.

Edit your plan, experiment with different plan inputs to see how your score and projections change.

  • What happens if you work for 5 more years?

  • What happens if you reduce your expenses by $300 a month?

  • What happens if you delay taking Social Security until 70?

  • What happens if you save more towards tax advantage accounts?

These are just a few scenarios to model in your plan. Iterate through many scenarios and combinations until you find a plan that feels right for your aspirations.

To learn about earning, saving, and optimization strategies, go to Strengthen Your Plan.

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