Starting retirement planning: the first questions to answer

Not knowing where to start is common. Retirement can feel far away, and the topic mixes money, rules and personal plans. This guide sets out five questions that cover the basics, what information helps, and where official checks can be found in the US, the UK, Canada and Australia, including for people who have lived or worked in more than one country. It describes how planning works; the choices stay with you.

What retirement planning involves

At its core, a retirement plan compares two things: what you expect to spend once you stop working, and the money that could pay for it. Everything else (savings rates, pension forecasts, withdrawal rates) feeds into one side or the other.

Five questions cover most of it:

1. What could retirement cost each year?
2. Where could income come from?
3. How big is the gap that savings would cover?
4. When could the numbers meet?
5. How long could savings last, and what can change the result?

There is no fixed order, and none of the answers has to be exact at first. Working in today’s money, meaning amounts in current prices, keeps the numbers comparable over the years.

Question 1: what could retirement cost each year?

Every retirement calculation starts with yearly spending. One way to estimate it is to take current spending, then adjust for what could change when work stops: some costs, such as commuting, can fall; others, such as travel or healthcare, can rise. How to make a retirement budget walks through one method, category by category.

Question 2: where could income come from?

Savings don’t always have to cover all spending. Common sources of other income are:

• a state pension or social security benefit, such as US Social Security, the UK State Pension, the Canada Pension Plan or the Australian Age Pension;
• a workplace or personal pension, or an annuity;
• other income, such as rent or part-time work.

Each source has its own rules on when payments start and whether they rise with prices. A guide on retirement income is planned; until then, see all retirement guides. The official checks for each country are listed further down.

Question 3: how big is the gap?

The part of yearly spending that other income doesn’t cover is what savings would pay for. A common way to turn that into a savings target:

Target = (yearly spending − other yearly income) ÷ withdrawal rate

Example (hypothetical, round numbers): spending of $40,000 a year with $15,000 of other income leaves $25,000 a year. At a 4% withdrawal rate, that points to $25,000 ÷ 4% = $625,000 in today’s money.

How much do I need? calculates this target with your own inputs, in any currency. The withdrawal rate is a rule of thumb from historical US research, not a promise; Withdrawal strategies explains where it comes from and what it leaves out.

Question 4: when could the numbers meet?

A target is one side; savings over time are the other. Can I retire at X? projects savings to a chosen age, compares them with the nest egg needed then, and shows the earliest whole age that works with your inputs. It also counts the years between stopping work and the start of other income, such as a state pension, which savings would pay for in full.

How savings build up over the years, and what changes when saving starts later, is covered in Saving for retirement.

Question 5: how long could savings last, and what can change the result?

A target based on a withdrawal rate is a starting point. Two more checks show how sensitive it is:

• How long will my money last? shows how many years a sum of savings could pay a given yearly amount at a steady return.
• Which withdrawal strategy holds up when markets fall? compares four withdrawal approaches when bad years come first, good years come first, or returns stay steady.

The main factors that can change the result, such as the order of returns, inflation and a longer life, are explained in Retirement risks.

Official checks by country

Many governments offer online services that show what a state pension could pay. A few examples:

• United States: a personal my Social Security account gives access to the Social Security Statement and estimates of benefits at different ages, according to the Social Security Administration. The IRS page “How to take responsibility for your retirement” lists further first checks, such as workplace plans and a spouse’s plan.
• United Kingdom: the GOV.UK “Check your State Pension forecast” service shows how much State Pension you could get, when you can get it, and whether you can increase it. GOV.UK notes that the State Pension age is regularly reviewed, so results can change.
• Canada: according to the Government of Canada, the Canada Pension Plan retirement pension is a monthly, taxable benefit that replaces part of your income when you retire. CPP benefits and services can be managed through My Service Canada Account.
• Australia: Moneysmart, from the Australian Securities and Investments Commission, describes retirement income sources, including super and the Age Pension.

Amounts, ages and thresholds change, so this guide doesn’t repeat them. Current official figures are on our numbers pages, for example the US numbers page.

If you have lived or worked in more than one country

A few points can matter when a working life or retirement crosses borders, described here in general terms:

• Pensions from more than one country. The US has Social Security agreements, often called “totalization agreements”, with a number of countries. According to the Social Security Administration, they help avoid paying social security taxes to two countries on the same earnings, and can help people who split their career between the US and another country qualify for partial benefits based on combined coverage.
• Receiving a pension abroad. GOV.UK explains that the UK State Pension can be claimed abroad by people who have paid enough UK National Insurance contributions, and can be paid into a bank in the country where you live, usually converted into the local currency.
• Tax residency. Where you count as resident for tax purposes affects how pensions and savings are taxed. For the US, the IRS says a non-US citizen is treated as a nonresident for tax purposes unless they meet the green card test or the substantial presence test. Other countries have their own rules, and reporting rules for foreign accounts can apply as well.
• Currency. If retirement income arrives in one currency and spending happens in another, exchange-rate movements change what that income buys. Our calculators work in the currency you choose and don’t convert between currencies, so one way to use them is to enter everything in the currency you expect to spend in.
• Healthcare. Public cover and costs differ strongly by country and can change when you move. A guide on healthcare costs is planned; until then, see all retirement guides.

Rules across borders are detailed and depend on the specific countries involved. The official pension and tax authorities of each country, or a licensed professional, can confirm how they apply.

Things a first plan can leave out

A first plan is a sketch, and some items are easy to miss. Describing them here doesn’t mean each one applies to you:

• One-off and irregular costs, such as a new car, home repairs or helping family.
• Inflation, if some numbers are in today’s money and others are not.
• The years before a state pension starts, if work stops earlier.
• Fees and taxes, which our calculators don’t model; a return after fees and a spending figure that includes taxes give a closer picture.
• A longer retirement than the periods of up to 30 years that the best-known withdrawal research tested.
• An unchecked state pension forecast, if the figure is an assumption rather than taken from an official statement.

What our calculators do and don’t cover

• They do cover: yearly spending, other income, savings you have and add, a withdrawal rate, and different starting ages, in any currency. Tools #1–#3 use one steady return and one steady inflation rate; the withdrawal scenarios calculator also compares hypothetical return paths, with bad years first and good years first.
• They don’t cover: taxes, fees (enter a return after fees), specific account types or contribution limits, state pension rules for your own record, currency conversion, or personal advice.

What you type stays in your browser. It is not sent or stored.

One next step: write down one number, your estimated yearly spending in today’s money, and enter it in How much do I need?. The rest can wait.

FAQ

Sources

• Social Security Administration, my Social Security: https://www.ssa.gov/myaccount/ (accessed 2026-10-23). Supports: personal account with the Social Security Statement and estimates of benefits at different ages.
• Social Security Administration, U.S. International Social Security Agreements: https://www.ssa.gov/international/agreements_overview.html (accessed 2026-10-23). Supports: “totalization agreements” eliminate dual social security taxation and help fill gaps in benefit protection; partial benefits based on combined coverage credits.
• Internal Revenue Service, How to take responsibility for your retirement: https://www.irs.gov/retirement-plans/plan-participant-employee/how-to-take-responsibility-for-your-retirement (accessed 2026-10-23). Supports: first checks for retirement planning, including Social Security estimates, workplace plans and a spouse’s plan.
• Internal Revenue Service, Determining an individual’s tax residency status: https://www.irs.gov/individuals/international-taxpayers/determining-an-individuals-tax-residency-status (accessed 2026-10-23). Supports: non-US citizens are nonresidents for US tax purposes unless they meet the green card test or the substantial presence test.
• GOV.UK, Check your State Pension forecast: https://www.gov.uk/check-state-pension (accessed 2026-10-23). Supports: the service shows how much State Pension you could get, when, and whether you can increase it; the State Pension age is regularly reviewed.
• GOV.UK, State Pension if you retire abroad: https://www.gov.uk/state-pension-if-you-retire-abroad (accessed 2026-10-23). Supports: State Pension can be claimed abroad with enough UK National Insurance contributions; payment into a bank in the country of residence, usually converted to local currency.
• Government of Canada, Canada Pension Plan retirement pension: https://www.canada.ca/en/services/benefits/publicpensions/cpp.html (accessed 2026-10-23). Supports: CPP retirement pension is a monthly, taxable benefit that replaces part of income in retirement; My Service Canada Account. Amounts on that page not repeated here.
• Moneysmart (Australian Securities and Investments Commission), Retirement income sources: https://moneysmart.gov.au/retirement-income (accessed 2026-10-23). Supports: retirement income sources in Australia, including super and the Age Pension.

Last reviewed: 2026-10-23. See our methodology and editorial policy.

Educational estimate, not personal financial, tax or legal advice. Rules differ by country; verify with official sources or a licensed professional. See our disclaimer.