By the Numbers: 11 Figures You Need to Know for a Secure Retirement

Figuring out if you can retire securely can sometimes feel like the most complicated word problem ever.  Just figuring out which retirement number to worry about can be perplexing.  And then there is the further complication of knowing how they all fit together.

retirement number

Here is your guide to the 11 retirement numbers that are most important.

Retirement Number 1: Your Break Even Social Security Age

You probably know that the later you start Social Security, the higher your monthly benefit will be.  Even so, a lot of people start getting checks as early as possible.  They think that the additional years of collecting benefits will make up for the additional money later on.

However, most people will earn more during their lifetime if they wait to start the benefits until later. 

One way for you to figure out the best time for you to start Social Security is to figure out your break-even Social Security age.  To do so you compare the total benefit you would receive at one age to another age.  Your age when the total benefit is equal is your break even age.  If you think that you will live longer than your break even age, then you would be better off delaying the start of your benefits till later.

You can figure out your break even Social Security age with this calculator.

Retirement Number 2: How Long You Will Live

Another important retirement number is knowing how long you will live.  As you saw above, knowing your longevity will impact your decisions about Social Security, it also is a big determining factor on how much savings you need for retirement.


Retirement Number 3: How Much Monthly Guaranteed Lifetime Income You Have



Common sources of guaranteed lifetime income include: Social Security, some pensions and lifetime annuities — add them all up to get this important retirement number.


Retirement Number 4: Inflation Outlook


Inflation can be less noticeable when you are working because your salary generally keeps pace with the increases in costs.  However, inflation in retirement — when you are living off a fixed set of assets — is a whole other matter. You have a fixed amount of money that can buy less every year.

So serious is inflation that it has been described thusly:




Predicting inflation is an important component of preparing for retirement.  According to this chart, inflation in the United States was at 2.07% in 2016.  This  is much lower than the highest rate of 13.29% (1979) we have seen over the last 50  years.  However, experts predict that we are likely to see inflation increase in the near future.


Retirement Number 5: Rate of Return on Investments

If you have retirement savings, then knowing how much that money will earn for you is important.

Ideally you are earning a rate of return that is better than average.  What is average you ask?  The answer, of course, is that “it depends.”

According to DALBAR, an independent expert for evaluating financial services, average returns over the last few years look like this:

  • For the last 3 years, the average return for the S&P 500 has been 20.41% while the average return for mutual fund investors has been 14.82%.
  • Over the last 10 years, the average return for the S&P 500 has been 7.67% and 5.26% for the mutual fund investor.
  • Over the last 30 years, the average return for the S&P 500 has been 11.06% and a mere 3.79% for the mutual fund investor.



Retirement Number 6: Out of Pocket Healthcare Costs


According to Fidelity’s Retiree Health Care Cost Estimate, a 65-year-old couple retiring in 2016 will need an estimated $260,000 to cover health care costs in retirement. This is a six percent increase over last year’s estimate of $245,000 and the highest estimate since calculations began in 2002.


The NewRetirement retirement planner automatically includes out of pocket medical costs in your plan and can help you figure out how to cover long term care.

Retirement Number 7: Estimated Monthly Retirement Spending



  • 85% of what you do while working.
  • The same as you spent while working.

Retirement Number 8: How Much is Your Home Worth



Retirement Number 9: How Much You Have Saved



Retirement Number 10: Your Retirement Age

Retirement age used to be 65 for most everyone.  These days we aren’t even sure exactly what “retirement” means anymore.  So many more people are quitting their job only to get another career or part time gig.  Other people are phasing out by going part time for a while.  And, retirees are more active now than ever before.

You might be able to define your retirement age as when you stop earning income from work.  But, then we get into the definition of work…  Many people these days have side hustles and passive income sources.


Retirement Number 11: How Much Savings You Need for Retirement


Of course, the answer to this question depends entirely on your answers to all the other questions…. And, the best way to get a reliable answer from this jumble is to use a good retirement calculator — one that is detailed and that can be completely personalized.

Numerous sources rank NewRetirement’s tool as one of the best.

Fear not. You can test drive all kinds of numbers and quickly see how you are doing.

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