Planning for retirement seems overwhelming, so I asked ChatGPT to create a complete action plan. AI provided a surprisingly detailed plan that covered everything from savings goals to health care costs.
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I earn $7,000 per month with $4,000 in expenses, leaving $3,000 to set aside. ChatGPT used these numbers to create a complete retirement strategy spanning decades.
ChatGPT has divided retirement into three distinct stages based on activity level and needs.
Go-Go years range from the mid-60s to the mid-70s. This is when you are active, traveling and doing hobbies. The AI said to budget extra during this phase for the experiences you’ve been waiting for.
The Slow-Go Years reached the mid-1970s and early 1980s. Travel decreases, activities become more home-based, and leisure activities become less ambitious. During this phase, costs are usually reduced.
The “lost years” come in the 80s and 90s, when there is less activity but much higher health care costs. ChatGPT recommended planning for 90-95 so you don’t run out of money.
This gradual approach made more sense than treating retirement as one long, identical period. Your costs and needs certainly change from decade to decade. It’s basic, but not something I’ve seen talked about that often.
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ChatGPT recommended 50% of my $3,000 surplus to be invested. That’s $1,500 a month for 401(k) plans, IRAs, or index funds.
At 6% compounded annually, AI estimates that I would have roughly $700,000-$750,000 in 20 years, or roughly $1,050,000 over 25 years. That’s before employer matches, Social Security or other assets are counted.
Using the 4% withdrawal rule, $1 million saves about $40,000 a year or $3,300 a month. Add in average Social Security benefits of about $1,800 per month, and you’re looking at $5,100 in retirement income.
AI wrote that this would comfortably replace my current lifestyle, especially if major expenses such as the mortgage are paid by then.
In addition to the $1,500 monthly investment, ChatGPT strategically allocated the remaining $1,500.
Twenty percent ($600) goes toward cash savings for emergency funds and future travel. The other 20% ($600) is used to pay off debt or fund major causes. The final 10% ($300) remains flexible as a contingency reserve.
That distribution seemed more realistic than dumping everything into retirement accounts. You need liquidity for emergencies and flexibility for life from now until retirement.
ChatGPT did not pay for the healthcare costs. By age 65, you’ll need coverage in the ACA marketplace or employer plans if you retire early. After age 65, Medicare covers hospital and medical, but not dental, vision or hearing.
The AI recommended setting aside approximately $6,000 per year per person for Medicare premiums and costs. That’s $500 a month just for health care in retirement.
Another concern was long-term care. ChatGPT wrote that 70% of retirees need some level of care, which means long-term care insurance, a hybrid life/LTC policy, or targeted savings.
AI emphasized that it used taxable accounts but diversified into pre-tax 401(k) plans, Roth IRAs and taxable accounts. This provides the flexibility to strategically manage tax pools in retirement.
ChatGPT recommended planning Roth conversions in lower-income years until Social Security kicks in. It also noted required minimum distributions starting at age 73, which could push you into a higher tax bracket if you don’t plan for it.
ChatGPT asked questions I hadn’t considered. where do you want to live Will you stay put, move to a cheaper state, or retire overseas? Do you want to help your kids or grandkids through college or a wedding?
AI recommended aiming to have your mortgage paid off in full before you retire, and budgeting extra for travel and hobbies in your 60s and 70s while you’re still active.
These lifestyle questions are just as important as the numbers. You can save $2 million, but be discouraged if you’re stuck somewhere you hate or feel obligated to financially support family members.
ChatGPT has identified immediate priorities: max out retirement accounts, save six to 12 months, pay off high-interest debt, get adequate insurance coverage, and start tracking expenses as you think about retirement.
The suggestion to “test the retirement budget” was a smart one. Try living on what you think your retirement income will be for a few months to see if it’s actually realistic or if you need to make adjustments.
A phased approach to retirement made sense. Different types of accounts have also been diversified for more flexible fees. Health care cost estimates are in line with what financial planners typically provide.
Breaking down exactly where my $3,000 surplus should go has eliminated decision fatigue. Having concrete percentages made it practical rather than theoretical.
ChatGPT could not accommodate my specific risk tolerance, family situation, or personal goals. The plan assumed that I wanted a traditional retirement, but maybe wanted to work part-time and do what I love.
AI also did not factor in the impact of inflation on this $1 million. for the purpose of USD. A million dollars in 25 years won’t buy what he’s doing today, although the 6% growth rate is probably a factor.
Estate planning was mentioned but not detailed. If leaving money to your heirs is important to you, this makes a big difference in your withdrawal strategy. Of course, there’s always the option to ask ChatGPT to adjust your plan!
ChatGPT has built a solid retirement system in minutes that would cost a financial advisor hundreds of dollars. The structure works, the math checks out and the action steps are clear.
However, AI cannot replace personalized financial advice that takes into account your unique situation, values and goals. Use ChatGPT’s plan as a starting template, then adjust according to what’s really important to you.
The biggest value wasn’t the specific numbers, it made me think about retirement in a systematic way rather than just vaguely hoping things would work out. That alone was worth asking ChatGPT for.
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This article originally appeared on GOBankingRates.com: I Asked ChatGPT to Plan My Entire Retirement: Here’s What He Said
