How much do people have saved for retirement?

[Anonymous]

Paid off house. 1 Mil savings. 180K pension. Kids college paid for. Kids cars paid for. 1/2 mil for each kid. Health care paid for. Lots of insurance.

[Anonymous]

Life is uncertain, so you shouldn't deprive yourself completely. I worried that my parents weren't saving enough for retirement, but they both died young, so it didn't matter.

That said, from someone who is retired -- don't make the mistake of assuming your COL is going to drop dramatically in retirement. You'll have lots of time and doing things costs money. Nice houses are relatively expensive, wherever you go. Those $200,000 houses you see in another state on Zillow are generally small houses in cookie-cutter developments in the middle of a field. You may be fine living there, but it's probably not what you had in mind. That charming cottage in a small walkable village with nice restaurants and shops is going to cost more than you think.

You obviously won't be saving more for retirement, so you can deduct that expense from your budget, but I've found that things I'm not spending money on (commuting, business clothing) are offset by new expenses (travel, hobbies, home improvement).

Personally, I wouldn't be comfortable with the amount you're saving, but YMMV.

[Anonymous]

You need to save more if you want to retire in DC, esp since you will still have a mortgage.

[Anonymous]

Your real challenge is going to be if/when one of you dies. God forbid, but your HHI will drop dramatically. You need a plan for it.

[Anonymous]

This is a dumb question. On dcum, it turns into a pissing match and everyone on here seems to have $1+ million by late 20s/30s, which is an absolute farce.

Median numbers are easily searchable. Your avg American has way less than $200k by their 40s.

[Anonymous]

Current HHI is $200k. We have a house that will be paid off a few years prior to retirement. We are 5 years out. We plan on moving to a lower COL area. Outside of the house, we have about $3m in 401k/IRAs. We plan on pushing SS until 5 years into retirement. We have run the numbers and are comfortable with them. We were able to save to fully pay for our children's colleges (about $40-$45k a year each- one is still there). We will not be donating as much $ to charity, but we will be able to give more time. Our spending is in line with our predicted income. The main reason we have not retired earlier is the unpredictable cost of health care.

[Anonymous]

Anonymous wrote:This is a dumb question. On dcum, it turns into a pissing match and everyone on here seems to have $1+ million by late 20s/30s, which is an absolute farce.

Median numbers are easily searchable. Your avg American has way less than $200k by their 40s.

Not in this area. OP will struggle with what she has.

[Anonymous]

Anonymous wrote:This is a dumb question. On dcum, it turns into a pissing match and everyone on here seems to have $1+ million by late 20s/30s, which is an absolute farce.

Median numbers are easily searchable. Your avg American has way less than $200k by their 40s.

True but Your average American works a low paying job and will rely on social security for the rest of their lives once they retire. They aren’t currently living in million dollar or even 1/2 million dollar houses near DC. They are poor.

[Anonymous]

Thanks to everyone for all this good info. I should have indicated that my husband does have a pension, but the lump amount was included in the $881K figure. The pension monthly estimate at 65 is $10K provided he keeps putting in at the same amount we have been now. And I think the health care costs are supposed to be partially covered in retirement, though I know our portion of the premium will go up. My apologies for not being more clear. I really appreciate the info, though, and think we should be putting more in. I don't think we need the full HHI that we have now, but we were thinking we'd rent out our house here and move somewhere else. We have EU citizenship so that's a dream plan to live in Italy or Ireland, but not sure we'll have enough nerve to actually do that.

To the poster who noted that posting on DCUM is an anxiety wish, you're probably right. I always think it will be interesting to hear perspectives, and have to then remind myself of the vast differences in perspectives, some will make me feel great, others like garbage and wonder where we went so wrong. I think we're all just doing the best we can, no matter how much we make, and we need to not be so hard on ourselves, while still trying to secure our financial future. Thanks all.

[Anonymous]

Anonymous wrote:

Anonymous wrote:This is a dumb question. On dcum, it turns into a pissing match and everyone on here seems to have $1+ million by late 20s/30s, which is an absolute farce.

Median numbers are easily searchable. Your avg American has way less than $200k by their 40s.

Not in this area. OP will struggle with what she has.

You do realize there are other people in the DC area that wealthy and highly educated people, right? There are blue collar workers too. I’m a teacher and at 45, I have maybe $50K in a 403b and maybe $30K in a pension. Anyone else want to chime in who isn’t making over $100K per year?

[Anonymous]

Anonymous wrote:Thanks to everyone for all this good info. I should have indicated that my husband does have a pension, but the lump amount was included in the $881K figure. The pension monthly estimate at 65 is $10K provided he keeps putting in at the same amount we have been now. And I think the health care costs are supposed to be partially covered in retirement, though I know our portion of the premium will go up. My apologies for not being more clear. I really appreciate the info, though, and think we should be putting more in. I don't think we need the full HHI that we have now, but we were thinking we'd rent out our house here and move somewhere else. We have EU citizenship so that's a dream plan to live in Italy or Ireland, but not sure we'll have enough nerve to actually do that.

To the poster who noted that posting on DCUM is an anxiety wish, you're probably right. I always think it will be interesting to hear perspectives, and have to then remind myself of the vast differences in perspectives, some will make me feel great, others like garbage and wonder where we went so wrong. I think we're all just doing the best we can, no matter how much we make, and we need to not be so hard on ourselves, while still trying to secure our financial future. Thanks all.

I use the retirement calculator on my brokerage company's website, but since you are much closer to retirement, I think you will be best served by meeting with a fee-only financial planner. You should be able to pay a flat, hourly fee for this type of advice. You can also ask at the brokerage where you keep your retirement accounts. They may have a FINRA member on staff to advise you or may refer you to one. It is well worth the personal advice and much, much more reliable than asking a bunch of people on here.

The teacher is right. No one here is going to give you actionable advice. And don't ask friends- it's just as bad!

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:This is a dumb question. On dcum, it turns into a pissing match and everyone on here seems to have $1+ million by late 20s/30s, which is an absolute farce.

Median numbers are easily searchable. Your avg American has way less than $200k by their 40s.

Not in this area. OP will struggle with what she has.

You do realize there are other people in the DC area that wealthy and highly educated people, right? There are blue collar workers too. I’m a teacher and at 45, I have maybe $50K in a 403b and maybe $30K in a pension. Anyone else want to chime in who isn’t making over $100K per year?

So what’s your plan?you have a pension?

[Anonymous]

Anonymous wrote:

Anonymous wrote:This is a dumb question. On dcum, it turns into a pissing match and everyone on here seems to have $1+ million by late 20s/30s, which is an absolute farce.

Median numbers are easily searchable. Your avg American has way less than $200k by their 40s.

Not in this area. OP will struggle with what she has.

Except you'd have to be a moron to stay in this area during retirement.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:This is a dumb question. On dcum, it turns into a pissing match and everyone on here seems to have $1+ million by late 20s/30s, which is an absolute farce.

Median numbers are easily searchable. Your avg American has way less than $200k by their 40s.

Not in this area. OP will struggle with what she has.

Except you'd have to be a moron to stay in this area during retirement.

Why? If your house is already paid for when you retire, your housing expense will be limited to taxes + utilities. Not much different than anywhere else, considering there are many parts of the country with property tax rates higher than DC metro. Most retirees aren't heading out to the pricey trendy bars and restaurants. If you can afford it, DC is a great place to be a retiree - tons of free cultural activities that you can take advantage of when you have time on your hands.

[Anonymous]

I know people who have retired with less and have been fine. Not super-flush, but with careful budgeting, lived perfectly comfortably. You really should try to minimize your housing expenses, though. Either pay off the house or sell and move to a less expensive location. Healthcare is the real wildcard - your out-of-pocket costs can really eat into your income if you experience a serious illness. I would still try to save as much as possible for the next few years - make hay while the sun shines...