The Zest Score — How RetireZest Measures Your Retirement Health

After running a simulation, the first thing you see is a number from 0 to 100. That's your Zest Score™ — a single measure of how well your retirement plan is positioned across the things that matter most.

This article explains how the score is calculated, what each pillar means for your retirement, and how to use it to make better decisions.

🎯 Why One Score?

Retirement planning generates a lot of numbers — account balances, tax bills, estate projections, Monte Carlo success rates. It's easy to get lost.

The Zest Score distills all of it into one honest number. It doesn't hide problems behind averages, and it doesn't inflate your score when the fundamentals are weak. It gives you a clear starting point: is my plan in good shape, and where should I focus?

📊 The Four Pillars

Your Zest Score is built from four pillars. Each one measures a different dimension of retirement health.

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Pillar 1 — Plan Survival (30 points)

The question: Will your money last through retirement?

This is the most critical measure. It runs your plan through thousands of simulated market scenarios (Monte Carlo analysis) and asks: in what percentage of those scenarios does your savings, pensions, and government benefits cover your spending all the way to the end of your plan?

Success Rate	Points
100%	30
95–99%	25
90–94%	20
80–89%	15
65–79%	10
Below 65%	5

A plan that runs out of money is the single biggest retirement risk. That's why Plan Survival carries the most weight — and acts as a gatekeeper for the entire score (more on that below).

What to do if this pillar is low:

• Reduce Active Years spending by 10–15%
• Consider delaying retirement by 1–2 years
• Try a different withdrawal strategy — "Balanced" or "RRIF Meltdown" often improve survival rates
• Delay CPP to age 70 for 42% more lifetime income

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Pillar 2 — Lifetime Tax Cost (25 points)

The question: How much of your money goes to taxes over your entire retirement?

This pillar measures your true lifetime effective tax rate — not just income tax, but everything: personal income tax, corporate passive tax, estate taxes at death, and OAS clawback. Every dollar the government takes is counted.

Lifetime Effective Tax Rate	Points
Below 15%	25
15–19%	20
20–24%	15
25–29%	10
30–34%	5
35%+	0

The difference between a good and poor withdrawal strategy can be $50,000 to $500,000 in taxes over a 30-year retirement. Most of that comes down to timing: which accounts you draw from, in what order, and at what income level each year.

What to do if this pillar is low:

• The RRIF Meltdown strategy draws down RRSPs early to fill lower tax brackets before CPP and OAS stack on top
• Pension income splitting with a spouse keeps both partners below higher brackets
• TFSA withdrawals are completely tax-free and don't count as income — preserving them for high-income years reduces clawbacks
• If you have a corporation, timing eligible dividend withdrawals in low-income years lowers your effective rate

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Pillar 3 — Retirement Cushion (25 points)

The question: Is there a safety net if things don't go as planned?

This pillar measures your after-tax estate as a percentage of your initial portfolio. If you started with $800,000 and your projected after-tax estate is $400,000, your cushion ratio is 50%.

Estate vs. Initial Portfolio	Points
100%+ (grew or held)	25
50–99%	20
30–49%	16
15–29%	12
5–14%	8
1–4%	4
0% (depleted)	0

A larger cushion means you can absorb the unexpected: living longer than planned, a major health event, a market crash in your early retirement years, or a family member who needs support. It's also the legacy you leave behind.

What to do if this pillar is low:

• Even a 5–10% reduction in early spending (your go-go years) compounds significantly over 30 years
• Delaying CPP to 70 adds a guaranteed income stream that reduces how much you draw from savings
• A tax-efficient withdrawal strategy preserves more of your portfolio from estate taxes
• TFSA contributions in pre-retirement years grow tax-free and pass to heirs without tax

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Pillar 4 — Spending Reliability (20 points)

The question: Does your plan consistently meet your desired lifestyle spending — every year?

A plan can technically survive while still having years where you can't afford what you planned. This pillar measures what percentage of your desired spending is actually met across all retirement years — no gaps, no shortfalls.

Spending Met	Points
99–100%	20
95–98%	16
90–94%	12
80–89%	8
Below 80%	4

What to do if this pillar is low:

• Review your three spending phases (go-go / slow-go / no-go) — most retirees overestimate Quiet Years spending
• Extending your Moderate Years phase spreads spending more evenly
• A more conservative withdrawal strategy smooths income across all years

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🚦 The Gatekeeper Rule

Plan Survival isn't just worth 30 points — it also caps the entire score. If your plan has a low survival rate, no amount of tax efficiency or estate value can make the overall score look good.

Survival Rate	Maximum Score
Below 50%	35
50–69%	55
70–84%	70
85–94%	85
95%+	100 (no cap)

This prevents a misleading result where someone has a great-looking estate and low taxes — but their money runs out at age 78.

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🏆 Score Ratings

Score	Rating	What It Means
90–100	Excellent	Your plan is well-structured across all four pillars — you can feel confident
75–89	Strong	Solid foundation with room to optimize one or two areas
60–74	On Track	Good start — a few targeted adjustments could make a meaningful difference
40–59	Room to Grow	Clear opportunities exist; the pillar breakdown shows exactly where to focus
Below 40	Getting Started	A plan in progress — small changes can move the needle significantly

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🔄 How the Score Drives Strategy Recommendations

After calculating your score, RetireZest runs the same simulation across 7 different withdrawal strategies — each one a different approach to drawing from your RRSP/RRIF, TFSA, non-registered accounts, and corporate accounts.

Each strategy gets its own Zest Score. The one that scores highest for your specific situation is what RetireZest recommends. You can accept the recommendation and re-run with one click, or explore the tradeoffs yourself.

This means the score is doing two jobs at once: it tells you where you stand today, and it's the engine that finds a better path.

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💡 How to Use Your Score

The Zest Score is a starting point, not a final answer. Here's how to get the most from it:

1. Run your baseline — Enter your numbers and see where you stand today
2. Read the pillar breakdown — Expand each pillar to see your specific result and what's driving it
3. Try the recommended strategy — If RetireZest suggests a different withdrawal approach, run it and see the score change
4. Adjust your inputs — Change retirement age, spending targets, or CPP start age and re-run to see the impact
5. Bring it to your advisor — A low pillar score gives you a specific, informed question: "My tax cost pillar is low — what strategies do you recommend for my situation?"

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📋 What the Score Doesn't Measure

The Zest Score is built on the information you provide. It doesn't account for:

• Lifestyle goals beyond spending numbers (travel plans, supporting family)
• Unexpected health events not reflected in your inputs
• Changes to government benefit programs
• Investment decisions or specific asset allocation within account types

It is an educational projection, not a guarantee of outcomes.

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RetireZest is an educational retirement planning tool and does not provide personalized financial, tax, or legal advice. RetireZest is not a registered financial advisor, dealer, or tax professional. The calculations and projections are estimates based on current government rates and the information you provide. Always consult a licensed financial advisor or tax professional before making financial decisions.