A new tool promises to help workers discover whether they are on track for a prosperous retirement.
The RISE Score — or Retirement Income Security Evaluation Score — promises to let you know how likely it is that you will have an adequate income during your golden years, according to a CNBC report.
Likened to a credit score for your retirement, the RISE Score takes into account factors such as:
- Your expected Social Security income
- Pension income for which you qualify
- How much you have saved for retirement over the years
- Your monthly living and medical expenses
The nonprofit Alliance for Lifetime Income — which is backed by the financial services industry — offers the RISE Score at a special website. Milliman, a company that provides actuarial products and services, developed the tool.
The website has a RISE Score calculator so you can determine your score. According to the site, the score ranges are:
- Over 750: Excellent
- 700-749: Very Good
- 650-699: Good
- 550-649: Fair
- 350-549: Poor
- Less than 350: Very Poor
How to retire securely
Tools such as a RISE Score can help you get a ballpark idea of whether you are on track for retirement. However, it’s a mistake to put too much faith into a one-size-fits-all piece of software.
The events of real life have a way of upending even the best-laid plans. So, don’t simply assume that a solid RISE Score means you’re headed for Easy Street.
Instead, you might look for ways to trim your expenses so you won’t need as much money in retirement. One of the best ways to secure solid finances in retirement is to downsize your living quarters.
As we recently reported in “7 Unexpected Perks of Downsizing as a Retiree“:
“Choosing a smaller dwelling can reduce housing costs and eliminate many maintenance tasks, such as painting, cleaning and mowing. Fewer rooms make housekeeping an easier task. A smaller home also offers other hidden advantages.”
For more retirement advice, check out:
- “8 Key Steps to Planning for Retirement as a Couple“
- “2-Minute Money Manager: How Can I Find Money to Save for Retirement?”