How much do you think you need for retirement, salary and age (and when you expect to retire)

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Everyone on DCUM throws out huge numbers, so I might be an outlier.

I'm 60, earn $97k, and currently have $700,000 in savings, and think I'm in fine shape. By age 66, I will have my house paid off, and my spending will drop from $4500 a month to $3000. My SS will be $2400 a month, and I can easily make up the difference from the withdrawals on the $700k.

I really think people saying you need $2 and $3 milliom are exaggerating IF you have living expenses in the $3k - $4k range.

Health insurance alone will be $3k $4K range in 15 years. For some of us. I'm not referring to you, I can tell you have your ducks in a row and are doing a fine job.

Medicare + Long Term Care Insurance takes care of that enough of the fear mongering

Lol!! I'm paying $8,000/mo for my moms memory care. Most people don't carry long term care and many things change in terms of what is actually needed when the time comes.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Everyone on DCUM throws out huge numbers, so I might be an outlier.

I'm 60, earn $97k, and currently have $700,000 in savings, and think I'm in fine shape. By age 66, I will have my house paid off, and my spending will drop from $4500 a month to $3000. My SS will be $2400 a month, and I can easily make up the difference from the withdrawals on the $700k.

I really think people saying you need $2 and $3 milliom are exaggerating IF you have living expenses in the $3k - $4k range.

Health insurance alone will be $3k $4K range in 15 years. For some of us. I'm not referring to you, I can tell you have your ducks in a row and are doing a fine job.

Medicare + Long Term Care Insurance takes care of that enough of the fear mongering

Lol!! I'm paying $8,000/mo for my moms memory care. Most people don't carry long term care and many things change in terms of what is actually needed when the time comes.

Bingo!

https://www.google.com/amp/amp.kiplinger.com/article/retirement/T027-C032-S014-the-impossible-reality-of-long-term-care-planning.html

[Anonymous]

Late 40s.

Planning for the following:

Retirement at age 67.

$50K pension income
$40K combined SS
$1.5 million retirement savings = approx. $60K/yr income
$600K - $800K home equity, which will be used to buy home outright in lower COLA area

This should produce roughly $150K income with no housing cost except for maintenance, insurance, and tax.

In addition, one or both of us may continue to work in part-time consulting position (both our careers are conducive to this).

[Anonymous]

Anonymous wrote:

Anonymous wrote:Everyone on DCUM throws out huge numbers, so I might be an outlier.

I'm 60, earn $97k, and currently have $700,000 in savings, and think I'm in fine shape. By age 66, I will have my house paid off, and my spending will drop from $4500 a month to $3000. My SS will be $2400 a month, and I can easily make up the difference from the withdrawals on the $700k.

I really think people saying you need $2 and $3 milliom are exaggerating IF you have living expenses in the $3k - $4k range.

Health insurance alone will be $3k $4K range in 15 years. For some of us. I'm not referring to you, I can tell you have your ducks in a row and are doing a fine job.

It will be more, we are already paying $3k-$4k a month for family coverage.

[Anonymous]

Anonymous wrote:Late 40s.

Planning for the following:

Retirement at age 67.

$50K pension income
$40K combined SS
$1.5 million retirement savings = approx. $60K/yr income
$600K - $800K home equity, which will be used to buy home outright in lower COLA area

This should produce roughly $150K income with no housing cost except for maintenance, insurance, and tax.

In addition, one or both of us may continue to work in part-time consulting position (both our careers are conducive to this).

+1 this is our goal too, more or less.

[Anonymous]

It is difficult to say how much we will need. It all depends on healthcare costs. DH takes a medicine that used to cost $1k a month, and now is $1k a week due to the drug company increasing the cost. If Medicare doesn’t cover it , we need to cover it. In the current environment, we can’t rely on Medicare.

We take other medications, but they are all reasonably priced at the moment.

[Anonymous]

Anonymous wrote:Everyone on DCUM throws out huge numbers, so I might be an outlier.

I'm 60, earn $97k, and currently have $700,000 in savings, and think I'm in fine shape. By age 66, I will have my house paid off, and my spending will drop from $4500 a month to $3000. My SS will be $2400 a month, and I can easily make up the difference from the withdrawals on the $700k.

I really think people saying you need $2 and $3 milliom are exaggerating IF you have living expenses in the $3k - $4k range.

This is exactly right. The weirdest are the people who preach austerity to get to some huge savings number. After 25 years of austerity, what are you expecting to do with all that money?

Wife and I make $200,000 a year together. We net about $10,000 a month from our pay checks, of which $2,500 is our mortgage. We have 3 kids I assume I won't be paying for forever (HOPEFULLY). I would assume our non-house, non-kid living expenses are probably $5-6,000 a month including international travel. I'm a Federal employee and can retire at 57 with a pension of $4500 a month. Even if SS got cut to 75% of benefits that would be something like $4500 a month at age 70.

So if we pay off our mortgage that means we're pretty comfortable from age 70 on, even before any 401(k) savings. We actually recently cut our 401(k) contributions make to the level that gets matched, because we were doing too much saving for the future and didn't want to feel as poor and stressed in the present.

[Anonymous]

Anonymous wrote:

Anonymous wrote:Everyone on DCUM throws out huge numbers, so I might be an outlier.

I'm 60, earn $97k, and currently have $700,000 in savings, and think I'm in fine shape. By age 66, I will have my house paid off, and my spending will drop from $4500 a month to $3000. My SS will be $2400 a month, and I can easily make up the difference from the withdrawals on the $700k.

I really think people saying you need $2 and $3 milliom are exaggerating IF you have living expenses in the $3k - $4k range.

This is exactly right. The weirdest are the people who preach austerity to get to some huge savings number. After 25 years of austerity, what are you expecting to do with all that money?

Wife and I make $200,000 a year together. We net about $10,000 a month from our pay checks, of which $2,500 is our mortgage. We have 3 kids I assume I won't be paying for forever (HOPEFULLY). I would assume our non-house, non-kid living expenses are probably $5-6,000 a month including international travel. I'm a Federal employee and can retire at 57 with a pension of $4500 a month. Even if SS got cut to 75% of benefits that would be something like $4500 a month at age 70.

So if we pay off our mortgage that means we're pretty comfortable from age 70 on, even before any 401(k) savings. We actually recently cut our 401(k) contributions make to the level that gets matched, because we were doing too much saving for the future and didn't want to feel as poor and stressed in the present.

You have the benefit of lifelong fantastic healthcare coverage.

[Anonymous]

Anonymous wrote:It is difficult to say how much we will need. It all depends on healthcare costs. DH takes a medicine that used to cost $1k a month, and now is $1k a week due to the drug company increasing the cost. If Medicare doesn’t cover it , we need to cover it. In the current environment, we can’t rely on Medicare.

We take other medications, but they are all reasonably priced at the moment.

I'm sorry. My mom is facing this, too. Her state pension is cutting prescription drug benefits for retirees, and they will be out on their own. The government needs to crack down on drug prices again. These prices are ridiculous. My son's $7 albuterol inhaler has jumped to $65. Generic. Albuterol and the delivery method have been around forever. Why the huge price increase?

[Anonymous]

Anonymous wrote:

You have the benefit of lifelong fantastic healthcare coverage.

I'm not disagreeing, but everyone has access to Medicare. If people are projecting draconian Medicare cuts, exorbitant out of pocket expenses, etc. it's all in the same bucket as people who don't even project they will get a minimum (likely 2/3) of their social security benefits because they think the whole system will collapse.

If you think you need to accumulate $5 million in taxable accounts to live in retirement because the social safety net will entirely collapse and you'll need $50,000 of medicine to survive every year, do what you need to do. I'm just pointing out that these people are projecting for a worst 1% scenario.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Everyone on DCUM throws out huge numbers, so I might be an outlier.

I'm 60, earn $97k, and currently have $700,000 in savings, and think I'm in fine shape. By age 66, I will have my house paid off, and my spending will drop from $4500 a month to $3000. My SS will be $2400 a month, and I can easily make up the difference from the withdrawals on the $700k.

I really think people saying you need $2 and $3 milliom are exaggerating IF you have living expenses in the $3k - $4k range.

Health insurance alone will be $3k $4K range in 15 years. For some of us. I'm not referring to you, I can tell you have your ducks in a row and are doing a fine job.

Medicare + Long Term Care Insurance takes care of that enough of the fear mongering

Not everyone has access to Medicare (outside of US).

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Everyone on DCUM throws out huge numbers, so I might be an outlier.

I'm 60, earn $97k, and currently have $700,000 in savings, and think I'm in fine shape. By age 66, I will have my house paid off, and my spending will drop from $4500 a month to $3000. My SS will be $2400 a month, and I can easily make up the difference from the withdrawals on the $700k.

I really think people saying you need $2 and $3 milliom are exaggerating IF you have living expenses in the $3k - $4k range.

This is exactly right. The weirdest are the people who preach austerity to get to some huge savings number. After 25 years of austerity, what are you expecting to do with all that money?

Wife and I make $200,000 a year together. We net about $10,000 a month from our pay checks, of which $2,500 is our mortgage. We have 3 kids I assume I won't be paying for forever (HOPEFULLY). I would assume our non-house, non-kid living expenses are probably $5-6,000 a month including international travel. I'm a Federal employee and can retire at 57 with a pension of $4500 a month. Even if SS got cut to 75% of benefits that would be something like $4500 a month at age 70.

So if we pay off our mortgage that means we're pretty comfortable from age 70 on, even before any 401(k) savings. We actually recently cut our 401(k) contributions make to the level that gets matched, because we were doing too much saving for the future and didn't want to feel as poor and stressed in the present.

You have the benefit of lifelong fantastic healthcare coverage.

Wow that's a huge benefit - plus a defined pension. I wouldn't have any worries either.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Everyone on DCUM throws out huge numbers, so I might be an outlier.

I'm 60, earn $97k, and currently have $700,000 in savings, and think I'm in fine shape. By age 66, I will have my house paid off, and my spending will drop from $4500 a month to $3000. My SS will be $2400 a month, and I can easily make up the difference from the withdrawals on the $700k.

I really think people saying you need $2 and $3 milliom are exaggerating IF you have living expenses in the $3k - $4k range.

This is exactly right. The weirdest are the people who preach austerity to get to some huge savings number. After 25 years of austerity, what are you expecting to do with all that money?

Wife and I make $200,000 a year together. We net about $10,000 a month from our pay checks, of which $2,500 is our mortgage. We have 3 kids I assume I won't be paying for forever (HOPEFULLY). I would assume our non-house, non-kid living expenses are probably $5-6,000 a month including international travel. I'm a Federal employee and can retire at 57 with a pension of $4500 a month. Even if SS got cut to 75% of benefits that would be something like $4500 a month at age 70.

So if we pay off our mortgage that means we're pretty comfortable from age 70 on, even before any 401(k) savings. We actually recently cut our 401(k) contributions make to the level that gets matched, because we were doing too much saving for the future and didn't want to feel as poor and stressed in the present.

You have the benefit of lifelong fantastic healthcare coverage.

Wow that's a huge benefit - plus a defined pension. I wouldn't have any worries either.

Plus $50K SS, so this poster is wealthy (will be in retirement).

[Anonymous]

It is a crap shoot even with pensions. Remember ENRON? Also, my grandparents lost their guaranteed health insurance when their former employer went bankrupt. It got worse over the years until getting private insurance was the better option even after Obamacare kicked in.

Of course I also had an elderly cousin who died a few years ago with a couple million in savings — no investment accounts — earned from municipal government pensions. He and his wife lived VERY frugally — as in their primary residence was a trailer they towed all over North America. (The original tiny house people!) Should the have enjoyed their money more? Sometimes I wonder.

[Anonymous]

Anonymous wrote:It is a crap shoot even with pensions. Remember ENRON? Also, my grandparents lost their guaranteed health insurance when their former employer went bankrupt. It got worse over the years until getting private insurance was the better option even after Obamacare kicked in.

Of course I also had an elderly cousin who died a few years ago with a couple million in savings — no investment accounts — earned from municipal government pensions. He and his wife lived VERY frugally — as in their primary residence was a trailer they towed all over North America. (The original tiny house people!) Should the have enjoyed their money more? Sometimes I wonder.

I assume everyone on here that counts on pensions is a government person. IDK who would be so naïve as to count on private sector pensions. Maybe I'm jaded but having worked in the bankruptcy space, the first corporate obligation that is discharged when any kind of financial trouble hits is pensions and retiree healthcare (if any was promised).