Most of us have no idea if our retirement plan is actually any good. Sure, we’re contributing to our 401(k) and maybe we’ve got some vague target numbers floating around in our heads, but is that enough? Will we actually be able to retire comfortably?
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Since professional financial advice can cost hundreds of dollars, I decided to ask ChatGPT to review my retirement strategy. I’m 40, aiming to retire around 67, and have what I thought was a pretty solid plan.
Here’s what ChatGPT had to say when I let it review my retirement plan.
First, the good news. ChatGPT gave me credit for several smart moves:
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Taking the 401(k) match: “Taking full advantage of your 401(k) match is free money — excellent.” Can’t argue with that logic.
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Saving 10%-15% of income: The AI called this “solid, especially if you started early.” Though as we’ll see, the early part is key.
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Simple investment strategy: My low-cost, diversified funds approach got a thumbs up as “a great default.”
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Planning ahead: ChatGPT liked that I’m thinking about increasing contributions over time and using windfalls for retirement savings.
So far, so good. But then came the reality check.
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Here’s where things got interesting. ChatGPT didn’t just pat me on the head and send me on my way; it had some serious suggestions for improvement.
First, my savings targets are too low. I was aiming for three times my salary by age 45, which ChatGPT called “a good minimum.” But then it hit me with this: “If you’re behind or started late, try pushing toward 4-5x salary by 45.”
The AI laid out a much more aggressive timeline:
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Age 45: 4x salary
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Age 50: 6x salary
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Age 55: 8x salary
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Age 60: 10x salary
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Age 67: 12-15x salary
That’s significantly higher than what I was planning. Talk about a wake-up call.
Second, I need to save more, period. If I didn’t start saving in my 20s or 30s (guilty), ChatGPT recommended bumping my savings rate to 15%-20% of my income, including employer match. That’s a big jump from my current 10%-15%.
This is where ChatGPT really opened my eyes. I’d been thinking about maybe adding a Roth IRA to the mix, but the AI made it clear it’s important.
“Try to diversify tax exposure,” ChatGPT explained, recommending I fund both a Roth IRA and keep some money in a regular taxable brokerage account. The reason? Flexibility. Having different types of accounts gives you more options for withdrawals and managing taxes in retirement.
