How much do people have saved for retirement?

[Anonymous]

That's about what we have, in a similar situation, OP. We know we won't be able to retire in the DC area and will plan to move elsewhere. That's what most of my DHs fed coworkers do.

[Anonymous]

Anonymous wrote:You don't tell us your HHI or expenditures or planned expenditures in retirement so we can know what's right for you--but Fidelity estimates that to retire at 67 you need 7x your current household income at 55. So if your current HHI is around 155k, you're on target--though if you want to retire at 65 instead of 67 you might need a bit more.

Also, healthcare is the wildcard--current average needed for retirement for a couple is 300k for all post 65 health expenses excluding long term care. (But I think that's figured into the Fidelity estimate).

And--just FYI--Social security may not pay off the amount you expect, be taxed at a higher rate in the future or tweak cola increases etc. Even though you are 10 years away, you are also retiring right at the expected point the SS surplus funds run out (and recent fiscal policy likely will worsen this). Our advisor suggests figuring SS in at 75% to be cautious.

The thing is also that it's really hard to know where retirement balances will go--but running out of money is way worse than having too much. So people may die "loaded" but still have saved the right amount to address the range of uncertainties. But your husband may be responding to this with anxiety about spending anything.

All that said, it sounds like you would benefit from a visit with a fee-only financial planner where they can figure out these details AND where you can have a third party likely tell you both that even if you need to keep up your level of retirement contributions, there is still room to buy a couch and paint the house. That neutral, expert voice can help move your husband away from just fear-based invest all the surplus possible.

For what it's worth, our HHI is around 120k, we're 50&55 and have about 1.5 million in retirement assets. We feel like it's likely to be a bit more than we need so we're contributing less (15% with the match) and spending a bit more freely now.

I think this the advice you should follow. Comparing your savings to others doesn't make sense because your retirement depends on your expenses/plans. It's hard to even know whether you're ahead/behind where you "should" be without more information.

[Anonymous]

Those first 5 years are going to be tough with a mortgage. To help answer your question, do this math:

SS+Nest Egg = $8500/month. After subtracting for the mortgage can you live off the remainder? Remember that you will probably need supplemental insurance to Medicare and that SS goes down when one of you passes.

[Anonymous]

Anonymous wrote:DCUM is crazy about this. Normal people would feel like you do - and would feel that, with over $1 million in retirement savings and another 10 years to go, of course you can travel and buy a couch.

On DCUM they'll tell you to move into a garden apartment rental and eat only rice and beans until you hit $11 million, then maybe you can get takeout pizza once a year.

These are the people who die from stress two weeks into retirement

[Anonymous]

Multiply what you think you can live on annually in retirement and multiply it by 25. If you need $100,000 deduct annual pensions and SS and multiply that net number by 25.

[Anonymous]

Anonymous wrote:

Anonymous wrote:DCUM is crazy about this. Normal people would feel like you do - and would feel that, with over $1 million in retirement savings and another 10 years to go, of course you can travel and buy a couch.

On DCUM they'll tell you to move into a garden apartment rental and eat only rice and beans until you hit $11 million, then maybe you can get takeout pizza once a year.

These are the people who die from stress two weeks into retirement

Gosh, this is pretty terrible but I just LOL'd.

OP. I'm 35 w/ about $145k in retirement, I started maxing out like 3 years ago. DH is 42, he's got about $600k and a pension. We have a young toddler and I still have student loans (low interest, but still). I used to stress about retirement because I felt like I got a late start (28/29). By DCUM standards, I definitely did, but I'm going to pour that energy into self-care so I actually make it to retirement. I think you should do the same, keep saving obviously, but if the couch is going to add to your happiness, buy the couch.

[Anonymous]

Anonymous wrote:It depends entirely on what you think your expenses will be but I would not be comfortable with your current levels of savings, particularly when combined with low SS combined payments. I am also about 10 years out and we are saving/paying down mortgages pretty aggressively at this point (post college/weddings).

$1m in savings will get you around $40k/year if you draw it down. Your $5k in SS gets you $60k. So that's $100k/year. Sounds like you will still have a mortgage for the first 5 years. Only you can answer if that's enough.

Agreed, I am not wealthy at all, and put nothing in retirement for quite a while when I was in grad school...but have that much for just one person.

I am 63 though.

Good luck!

[Anonymous]

I assume you each have no person, that SS will be your only income? I’d track spending in a spreadsheet for a few months - see what your actual monthly expenses are now. Compare that net income (take home) to what your anticipated retirement monthly income will be. If there is a gap, have to figure out how you will get income to cover the difference. If you’re running a surplus, that’s good. Also remember that your net income now is after you’ve made retirement account contributions. If going to stop that, won’t have that monthly cost anymore. I found just tracking and comparing living expenses to expected net income each month made things clear to me.

[Anonymous]

No, I don’t think you can retire unless you are going to live in a very very low cost of living area.

[Anonymous]

Plenty of people have a lot more and a lot less then you do. If you’re coming to dcum you know what you are going to hear. So I assume You wanted to feel anxious?

We barely have anything but I have a trust that kicks in later with a few million. So I have more and less then some people. Like everyone else.

[Anonymous]

Early 40’s. 1M+ so far, 550k in rental properties, 50-60k pension. Trying to get DH to stretch for a house that we both love so we can enjoy our time now instead of waiting until we’re in our 60’s/70’s.

[Anonymous]

I hear so many people say they will downsize their house. I know of two people right now that their house, if they sell, at best will only get enough to buy a smaller house that costs the same. Property taxes are higher because it's a newer house and their taxes started lower and can only grow by X% a year vs starting later with a higher rate.

If downsizing is a way to pay for retirement make sure you know what a smaller house will reasonably cost you.

[Anonymous]

OP,

Go on ebay or go to your local library. Get "Your Money Ratios" from Charles Farrell. Easy to read and understand. It'll help you visualize where you are and help you plan where you want to go. It'll help you look at all your financial decisions as interrelated choices.

It will cost you $0 to $4 to do this. It is worth your time. The question you are asking is very personal and varies a lot from person to person. Also, for any posters here who say "you should have $X million" -- well, it's just not helpful if there is no realistic way for you to get there in 10 years. Work from reality. This book will help you know where you are and what is realistic.

[Anonymous]

Anonymous wrote:

Anonymous wrote:You need to think about long term care. These unexpected expenses can wipe you out. Don't rely on Medicaid because you could end up in a horrible facility.

+1000

You can end up in a horrible or good facility either way. A lot of the private pay places look fancy to impress the residents' children but that doesn't mean they are actually good.

[Anonymous]

Buy the couch. In the scheme of things, it won’t scratch the surface of your retirement kitty. And it will make you happy and boost your longevity.