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The 10-Year Readiness Check

Could you retire from your business in ten years?

This 10-Year Readiness check, or Gap Calculator, is intended to take a snapshot of your current readiness to retire in 10 years, as measured by The Gap between what you are currently on track for having vs. what you can expect to need when you retire. Calculating your retirement needs and your predicted assets at the time of retirement is a very complicated task. To calculate a single number, many simplifying assumptions must be made; otherwise, the calculator would become a full-blown planning tool, which it is not. This calculator is not a substitute for a plan.

Put in your best, realistic numbers. If it shows you have a gap at ten years, that is the starting point for a conversation, not a number to tweak by changing the inputs. Whether the calculator says you have a gap or not, if you are serious about planning for retirement, you should seek out the services of a financial planner.

Step 1 · Your numbers

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$
$
Assumptions you can adjust
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Every assumption behind the result is listed in full lower on this page.

Step 2 · Your details

We'll use these to send your results and follow up about a readiness review.

Your first-order result

Your inputs have changed since this result was calculated. Recalculate to update it.
Target nest egg
What you'll have
The gap
target minus what you'll have
Extra saving to close it

Full disclosure

What's behind these numbers

This is a simplified, first-order model. So you can judge the result for yourself, here is every assumption baked into it.

Investment return: 6% per year, after inflationA "real" return. It implies a diversified, moderate-growth portfolio. A more conservative mix would be lower. Adjustable in Step 1.
Inflation: not added separatelyEvery dollar figure is in today's dollars, and the return above is already after inflation, so your target income keeps today's buying power.
Safe withdrawal rate: 4% per yearSets the nest egg as your desired income divided by this rate (the "4% rule" is a common anchor, not a guarantee). Adjustable in Step 1.
Time horizon: 10 yearsThe window the result is measured against. Adjustable in Step 1.
Risk profile: not assessedThe tool does not ask your risk tolerance. The single return above stands in for it. Your actual portfolio and comfort with risk would change the outcome.
Contributions: level and annualAssumes you add the same amount every year, once a year, and it grows at the real return above.
Existing savings: grown at the same real returnCompounded once a year for the full horizon.
Taxes: none modeledNo tax is applied to contributions, growth, or withdrawals. For high earners this is significant, and it is exactly what a real review addresses.
Fees: none modeledAdvisory, fund, and account fees would reduce the returns shown.
Not includedSocial Security, pensions, annuities, proceeds from selling your practice, inheritances, other income, healthcare costs, and market ups and downs (sequence-of-returns risk).
Currency: U.S. dollarsAll inputs and results.
Important. This calculator is for general education only. It is a simplified estimate, not financial, tax, legal, or investment advice, and it does not account for your full situation. Using it does not create a financial planning engagement or relationship with Priority Tax & Financial Planning, Robert W. Pryor, Jr., Lincoln Investment, Capital Analysts, Registered Investment Advisers or any of their affiliates. Results are not guaranteed, and you are solely responsible for any decisions you make based on them. Priority Tax & Financial Planning and the above firms are independent and non-affiliated.

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