Understanding Your

Retirement Ratio

Understanding Your

Retirement Ratio

The one number that tells you exactly where you stand.

The one number that tells you exactly

where you stand.

WHAT IS THE RETIREMENT RATIO?

WHAT IS THE RETIREMENT RATIO?

One number. Complete clarity.

One number. Complete clarity.

Most people heading into retirement carry a quiet worry they rarely say out loud: will my money actually last? They have accounts, statements, and maybe a rough plan — but no single, honest answer.

The Retirement Ratio is that answer. It distills your income sources, spending, savings, and investments into one number: the earnings rate your portfolio needs to sustain your retirement lifestyle.

4.2

%

YOUR RETIREMENT RATIO

The earnings rate your portfolio needs to sustain your retirement. Know this number and you know exactly where you stand.

1 hr

One focused session

1 plan

Yours to keep

1 number

Clear and actionable

*Example number for illustration only

1 hr

One focused session

1 plan

Yours to keep

1 number

Clear and actionable

HOW IT WORKS

A simple formula. Real answers.

A simple formula. Real answers.

Any gap between your retirement income (Social Security, pensions, rental income) and your expected spending is what your portfolio must cover.


The Retirement Ratio measures exactly how hard your savings have to work.

Income - Expenses = Deficit

Deficit ÷ Invested Assets = Retirement Ratio

Example: a 4.2% Retirement Ratio means your portfolio needs to earn 4.2% per year to sustain your retirement.

Example: a 4.2% Retirement Ratio means your portfolio needs to earn 4.2% per year to sustain your retirement.

We calculate this twice: year one of retirement, and as a ten-year average.

The ten-year average becomes the anchor for every planning decision that follows.


The goal is to get below 5%

THE PROCESS

More than a number.

Building your Retirement Ratio surfaces real planning opportunities. One focused session. A complete plan.

Social Security timing

Social Security timing

Pension Options

Investment Allocation

Investment Allocation

Savings strategy

Tax planning

WHAT DOES YOUR NUMBER MEAN?

Your Score. Your Roadmap.

Your Score.

Your Roadmap.

Below 3%

You're in excellent shape

Well-funded retirement with room for legacy goals or reduced investment risk.

Well-funded retirement with room for legacy goals or reduced investment risk.

3% to 5%

You're on solid ground

Your plan is working. Focus shifts to thoughtful spending and staying in range.

Your plan is working. Focus shifts to thoughtful spending and staying in range.

Above 5%

Changes are needed.

We'll identify which levers (spending,

timing, savings) give you the most impact.

We’ll identify which levers (spending,

timing, savings) give you the most impact.

WHAT TO BRING

Come prepared. Leave with a plan.

Come prepared. Leave with a plan.

Have these ready for your session:

Social Security statement
Your most recent statement from ssa.gov or a benefits
estimate.

Pension Calculations
Benefit estimates and available claiming options

Spending Estimate
A rough sense of annual spending. No spreadsheet required.

Account Statements
Recent statements on investment and retirement accounts

That's it. No complicated prep. Just bring what you have.

That's it. No complicated prep.

Just bring what you have.

Ready to find your Retirement Ratio?

Ready to find your Retirement Ratio?

Schedule a one-hour session and walk away with a complete retirement plan

Wealth Balance Advisors

Retirement Planning, Simplified.

Birmingham, AL

Client Access

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Wealth Balance Advisors is an other business name of Independent Advisor Alliance, LLC. All investment advice is offered through Independent Advisor Alliance, LLC, a registered investment adviser. This website is for informational purposes only and does not constitute investment advice. Past performance is not indicative of future results.

Wealth Balance Advisors

Retirement Planning, Simplified.

Birmingham, AL

Client Access

Subscribe to Our Newsletter

Wealth Balance Advisors is an other business name of Independent Advisor Alliance, LLC. All investment advice is offered through Independent Advisor Alliance, LLC, a registered investment adviser. This website is for informational purposes only and does not constitute investment advice. Past performance is not indicative of future results.