Are You on Track to Retire in 2028? Here's How to Find Out This April.

If you’re aiming to retire in 2028, you don’t need to be a math genius to know that the clock is ticking down. It’s important to make sure you’re on track to retire if that milestone is only two years away. Here’s how to tell.

1. Calculate your expected spending

When you’re 10 or 15 years away from retirement, it can be tricky to get a handle on what your monthly bills might look like. At this point, you should have a pretty good sense.

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Run the numbers to see what you monthly and annual spending is likely to be once you stop working. Factor in one-time expenses, too, such as annual insurance bills or other expenses that don’t necessarily recur monthly.

And don’t forget to account for your changing habits. You might spend more on leisure once you’re no longer tethered to a job. You might also spend less on commuting to balance things out.

2. See where you are savings-wise

By now, you’ve hopefully managed to accumulate a nice retirement nest egg. But it’s important to make sure your savings can support the lifestyle you want.

Let’s say you’ve calculated your annual spending needs at $90,000. If you’re getting $30,000 a year in Social Security, your savings will need to provide $60,000 worth of spending to sustain that plan unless you intend to work or have another income stream available.

As a general rule, a 4% withdrawal rate is reasonable for an investment portfolio with a roughly equal split between stocks and bonds. If you have a $1.5 million IRA or 401(k), that should support $60,000 withdrawals.

If you have less savings, you may need to adjust your spending plans (or truly ramp up contributions over the next couple of years). If you have more, you’re in even better shape.

3. Stress-test your plan

Even if your numbers look good on paper, it’s important to consider how your plan holds up under different scenarios. What happens if the market dips right as you retire, for example? Or what if you find that your yearly costs are higher once you actually retire because you’ve underestimated your healthcare spending?

Before you move forward with your 2028 retirement plans, figure out how to address these scenarios. If the market tanks, reducing spending and/or working part-time is a reasonable solution. If you need more money for healthcare, decide where it will come from. If you’re able to come up with solutions to these problems, it’s a sign that your plan is in pretty good shape.

If you’re hoping to retire in 2028, now’s the time to do a thorough assessment. By evaluating your expenses, assessing your income, and stress-testing your strategy, you can get a clear sense of whether you’re on track.