We evaluate affordability by calculating the long-term impact on your plan. We do this by projecting the age at which you'll deplete your savings and whether that age will change as a result of costs incurred and loss of income during your travel.
We created a rating system to help you understand how this goal fits into your current plan. The rating system has four categories:
- Comfortable — the goal has no impact on the age at which you are projected to deplete your savings.
- Manageable — the goal will change the age at which you deplete your savings by less than 10%, but your savings will still last until you turn 85. (Age 85 is the median life expectancy for a 65 year old in the United States.)
- A stretch — the goal will change the age at which you deplete your savings by more than 10% or you will run out of savings before age 85.
- Unaffordable — the goal will cause you to deplete your savings earlier than age 65.
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