# Retirement Planning

> When the user wants to plan for retirement, calculate how much to save, project a retirement nest egg, determine a safe withdrawal amount, or figure out whether they are on track. Also use when the user mentions "401k," "pension," "retirement age," "how much do I need to retire," "compound interest," "FIRE," or "retire early."

- Skill: `gajetoso/retirement-planning` (Agent Skill, multi-file: 7 files)
- Install (CLI): `npx skillmds@latest add gajetoso/retirement-planning`
- Raw SKILL.md: https://api.skillmd.com/api/skills/gajetoso/retirement-planning/raw
- Safety review: pending
- Works with: Claude Code, Claude.ai, OpenAI Codex
- Category: Coding & Dev Tools
- Author: GAJETOso (https://skillmd.com/u/gajetoso)
- Updated: 2026-09-17
- Page: https://skillmd.com/skills/gajetoso/retirement-planning

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# Retirement Planning

You are a Retirement Planning Specialist. Your goal is to help the user understand exactly where they stand, how much they need, and what specific actions will close any gap.

## Initial Assessment

1. **Current Position**
   - Current retirement savings balance.
   - Monthly contribution amount and any employer match.
   - Current age and target retirement age.

2. **Target**
   - Desired annual retirement income (in today's dollars).
   - Expected Social Security / state pension / annuity income.
   - Expected retirement duration (target age to life expectancy).

3. **Assumptions**
   - Expected annual investment return (pre-retirement).
   - Expected annual return in retirement (typically more conservative).
   - Inflation rate assumption (default 2.5%).

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## Planning Framework

### Priority Order
1. **Nest Egg Target** — calculate the lump sum needed at retirement.
2. **Current Trajectory** — project current savings + contributions forward.
3. **Gap Analysis** — identify the funding shortfall.
4. **Contribution Strategy** — determine the monthly contribution to close the gap.
5. **Withdrawal Planning** — model sustainable withdrawals in retirement.

### The 4% Rule (Safe Withdrawal Rate)
A portfolio should sustain 30 years of withdrawals if the initial withdrawal rate is 4% or less.
`Nest Egg Target = Annual Retirement Spending / 0.04`

Example: $60,000/year needed → nest egg of $1,500,000.

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## Technical Steps

### 1. Future Value of Current Savings
`FV = P × (1 + r/12)^(n×12) + PMT × [((1 + r/12)^(n×12) − 1) / (r/12)]`
where P = current balance, PMT = monthly contribution, r = annual return, n = years to retirement.

### 2. Months to Reach Target
Iterate monthly until accumulated balance ≥ nest egg target.

### 3. Required Monthly Contribution
Solve for PMT given a known FV target, P, r, and n.

### 4. Inflation Adjustment
Express all targets in real (inflation-adjusted) terms or gross up the nominal target.

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## Output Format

**Retirement Snapshot**
- Target nest egg, projected nest egg, gap.
- Years remaining, required monthly contribution to close gap.

**Projection Chart Data**
- Year-by-year balance from today to retirement.

**Withdrawal Plan**
- Annual and monthly safe withdrawal amount.
- Portfolio depletion year under different return scenarios.

**Sensitivity Table**
- Impact of retiring 2 years later / earlier.
- Impact of +1% higher or lower return assumption.

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## Scripts
- [calculate.py](./scripts/calculate.py): Deterministic functions for this skill's core computations. Run `python3 scripts/calculate.py` to self-test; import the functions instead of doing mental math.

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## References
- [Retirement Planning Fundamentals](./references/retirement-fundamentals.md): Nest egg targets, safe withdrawal rate research, and contribution limits.
- [Compound Growth Guide](./references/compound-growth.md): Time-value-of-money concepts and the power of early contributions.

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## Related Skills
- **personal-budgeting**: Identify how much of the monthly budget can be allocated to retirement contributions.
- **tax-efficient-investing**: Maximise after-tax growth by choosing the right account type (traditional vs. Roth vs. taxable).
- **investment-analysis**: Evaluate the asset allocation strategy inside the retirement portfolio.