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Preparing for retirement goes beyond simply accumulating funds; it's about accurately assessing your readiness. Your Retirement Score provides a transparent overview of your current financial standing, pinpointing areas where your strategy might require fine-tuning. Whether you're approaching retirement, actively growing your savings, or considering the role of diverse alternative assets in your portfolio, comprehending and enhancing your Retirement Score is an essential step towards securing your future.
Understanding Your Retirement Score
What Retirement Score Best Fits Your Goals?
Your Retirement Score is more than a number; it's a snapshot of your overall retirement readiness. The ideal score for you depends on factors like how long you expect retirement to last, your projected lifestyle, and your personal comfort with financial risk.
And while traditional savings and investment vehicles still form the foundation, today’s retirees are increasingly diversifying, including carefully selected alternative assets, to boost potential and manage longevity risk.
Here’s how to think about your Retirement Score in relation to your financial lifestyle:
1. Early Retirees (Target Score: 740+): If you’re planning to retire in your 50s or early 60s, your savings will need to last significantly longer. This makes your Retirement Score especially critical. You may benefit from a mix of low-risk income-generating assets and long-term growth strategies to maintain purchasing power across multiple decades.
2. Moderate Spenders (Target Score: 670–739): If your retirement expenses are relatively average, you're likely on solid footing. Your goal should be to maintain a balanced portfolio that continues to grow at a healthy pace, while staying aligned with your spending needs and timeline.
3. Risk-Averse Individuals (Target Score: 800+): If you prefer to play it safe, your Retirement Score should reflect that higher margin of safety. While conservative in approach, you can still build strength in your plan through thoughtful diversification, including low-volatility investments or stable-income tools that provide reliability without unnecessary exposure.
4. High-Net-Worth Individuals (Target Score: 800–850): If your priority is wealth preservation and legacy planning, maintaining a high score ensures you're positioned for generational security. However, even in this bracket, allocating a modest percentage to high-growth opportunities, including emerging asset classes, can enhance resilience and support philanthropic or estate goals.
Tip: Use Retired.com's planning tools to see how small shifts in your portfolio, whether in traditional or alternative assets, can meaningfully improve your score over time.
How Can You Improve Your Retirement Score?
No matter where you start, there are reliable steps you can take to boost your Retirement Score and enhance your long-term financial outlook.
1. Practice Dollar-Cost Averaging (DCA): DCA is a strategy where you invest a fixed amount regularly, regardless of market conditions. This method:
- Lowers the risk of poorly timed lump-sum investments
- Helps smooth out market volatility
- Builds wealth consistently over time
Applying DCA, whether into retirement accounts, diversified funds, or long-term growth assets, can help you stay disciplined and confident.
2. Hold for the Long Haul: Successful retirement investing isn’t about chasing trends. It’s about sticking with a plan. Holding quality assets through market cycles allows compounding to work, reduces emotional decision-making, and supports the stability your retirement deserves.
3. Increase Contributions Gradually: Even modest increases in monthly contributions, especially if automated, can significantly impact your score. Consider scheduling periodic contribution reviews to ensure you’re staying on track with inflation, income changes, and evolving retirement goals.
4. Rebalance and Diversify: Revisit your portfolio regularly to ensure it reflects your timeline and risk tolerance. Each component plays a role in maintaining score stability.
5. Use Passive Income Strategies: Explore options that provide income without active trading, such as, staking income (for digital assets). These sources add passive strength to your portfolio while keeping your score moving in the right direction.
Your Path to a Stronger Retirement Starts Now
Your Retirement Score is more than just a number, it’s a reflection of your financial habits, investment strategy, and long-term goals. The good news? No matter where you currently fall on the scale, there are clear, achievable steps to improve your readiness.
By adopting strategies like consistent investing through DCA, staying committed to long-term holdings, and leveraging diversified exposure, you can steadily build resilience into your portfolio. Combine that with smart tools, regular rebalancing, and passive income opportunities, and your retirement future can shift from uncertain to secure.
Start now, because small, intentional changes today can translate into lasting financial freedom tomorrow. Schedule a free call with a Retired.com¹ specialist to explore how strategic investing can elevate your retirement readiness and help you reach your long-term goals.
*The projections and information provided by the Retired.com Retirement Score tool are for informational and educational purposes only. They should not be construed as legal, tax, financial, or investment advice. This tool does not provide personalized investment recommendations, nor does it suggest specific investment actions or account types. The tool does not take into account your specific financial situation, objectives, or risk tolerance. It does not reflect actual investment performance, nor does it guarantee future results.
The tool allows you to explore hypothetical scenarios to help assess your retirement strategy, but the assumptions and methodology used are not tailored to any specific individual. Results may vary with each use and over time. All information, assumptions, and projections are hypothetical in nature and should be used as a general guide only. They are not guaranteed to be accurate, complete, or current. This tool should not be your sole resource when making financial decisions. Please consult a qualified financial or tax professional to address any questions specific to your situation.
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