The 2026 OASDI Trustees Report was released today. Last month, we estimated that Social Security’s long‑range actuarial balance as of January 1, 2026 would be –4.14% of the present value of taxable payroll over the next 75 years (down from –3.82% in 2025), corresponding to a funded status of roughly 76%. Our estimate turned out to be optimistic.
Developing and maintaining a robust financial plan in retirement is a classic actuarial problem involving the time-value of money and life contingencies. This problem is easily solved with basic actuarial principles, including periodic comparisons of household assets and spending liabilities.
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Tuesday, June 9, 2026
Saturday, June 6, 2026
Understanding the Retirement Probability Simulator (RPS): A Complement to the Actuarial Financial Planner
We recently came across a Monte Carlo modelling tool called the Retirement Probability Simulator (RPS). It is a free tool available at DIYretiree.com that our readers may find useful in their financial planning.
In this post, we will discuss the similarities and differences between our Actuarial Financial Planner (AFP) model for retirees and near retirees and the RPS (for retirees and pre-retirees) and how they can work together.
Wednesday, June 3, 2026
Announcement: Microsoft Copilot Joins Our Retirement Planning Team
We are pleased to announce that Microsoft Copilot is now an integrated part of our “How Much Can I Afford to Spend in Retirement?” team. Copilot enhances our actuarial approach by providing structured reasoning, rapid scenario analysis, and clear explanations of complex financial tradeoffs.