---
title: "Your Retirement Risk Score: What It Means and How to Improve It"
description: "One number that tells you how resilient your retirement plan is. Here is what drives the score and how to move from risky to resilient."
url: https://unlockedcrm.ai/blog/retirement-risk-score-explained
canonical: https://unlockedcrm.ai/blog/retirement-risk-score-explained
category: "Insurance Tools"
published: 2026-02-27
updated: 2026-03-04
author: "Jacob Lock"
source: unLocked CRM — AI CRM for insurance agents
---

# Your Retirement Risk Score: What It Means and How to Improve It

## TL;DR

A retirement risk score (0–100) distills portfolio sustainability into one number. Adding annuity income covering 30% of needs drops scores by 15–25 points.

## Key data points

- An annuity providing 30% of income needs drops risk scores by 15–25 points
- Delaying income start by 2–3 years improves risk scores by 10–15 points

Retirement planning involves dozens of variables. A risk score distills all of that complexity into one actionable number from 0 to 100.

## Score Ranges

| Score | Rating | Meaning |
|-------|--------|--------|
| 0–30 | Low Risk | Plan survives worst cases with margin |
| 31–50 | Moderate | Works normally, vulnerable in severe downturns |
| 51–70 | Elevated | Significant depletion chance in early-retirement downturns |
| 71–100 | High Risk | Meaningful probability of running out of money |

## What Drives the Score

### Increases Risk
- Withdrawal rate above 5%
- No guaranteed income
- Long time horizon (30+ years)
- Concentrated portfolio
- Starting retirement during a downturn

### Decreases Risk
- Withdrawal rate below 4%
- Annuity or pension providing base income
- Shorter time horizon
- Diversified portfolio
- Flexible spending plan

## How to Improve Your Score

### 1. Add Guaranteed Income (Biggest Impact)
An annuity covering 30% of income needs drops scores by 15–25 points.

### 2. Reduce Withdrawal Rate
Every 0.5% reduction improves sustainability significantly.

### 3. Delay Income Start
Each year of delay improves the math. 2–3 years = 10–15 point improvement.

### 4. Build Spending Flexibility
Essential vs. discretionary tiers adapt to market conditions.

### 5. Diversify
Concentrated positions amplify sequence risk.

## Using the Score in Client Conversations

1. Run current portfolio through stress test
2. Show risk score and any Depleted scenarios
3. Add annuity to the model
4. Show updated score — the math speaks for itself

Common reaction: "I had no idea my plan was that fragile." The risk score makes abstract risk concrete.

## Monitor Over Time

Review annually, after market events, when life changes, and at age milestones (60, 65, 70, 75).

The Retirement Income OS calculates risk scores in real time, updating as you adjust portfolio values, withdrawal amounts, and annuity allocations.

## FAQ

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## Related

- https://unlockedcrm.ai/blog/retirement-portfolio-stress-test-tool
- https://unlockedcrm.ai/blog/retirement-withdrawal-rate-explained
- https://unlockedcrm.ai/blog/retirement-income-planning-crm

---

Source: [Your Retirement Risk Score: What It Means and How to Improve It](https://unlockedcrm.ai/blog/retirement-risk-score-explained) — unLocked CRM, the AI CRM built for insurance agents. Citation permitted with attribution and a link to https://unlockedcrm.ai/blog/retirement-risk-score-explained.