How much do people have saved for retirement?

[Anonymous]

Anonymous wrote:

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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.

There are states where there are 0% taxes on retirement account withdrawals or 0% income taxes. Plus done states have other perks like reduced property taxes, lower rates for insurance on basically everything, and much lower cost of living overall. Paying 0% income tax on 401k income is huge amounts of money to consider. It isn't worth it at all to stay in this region in retirement to pay 3x sticker price on everything just to have access to amenities and a job market you no longer need.

Where is that?

Here you go: https://www.kiplinger.com/slideshow/retirement/t054-s001-taxes-in-retirement-how-all-50-states-tax-retirees/index.html

Well, there's 0 state tax occasionally, often made up by higher sales or income taxes in places, but of course there's still federal which is the far bigger tax issue.

[Anonymous]

Anonymous wrote:I always feel that DCUM oversaves

I don't get why people need over 100k in retirement. For most people SS almost gets you halfway there. And SS isn't going away, the age might go up and benefits might slightly decrease but most people should be expecting at least 2500 a month if they are working

Main point being 1-3 million retirement account fund at age 60-65 is plenty.

Some realistic benchmarks 1 million at 55

500k at 45

250k at 35

Because I like to take at least one ski trip out west each year. Because I plan on spending a month in Europe every year. Because I live cooking nice dishes and eating out at good restaurants. Because I plan to have a seasonal home. Because I want to enjoy myself, after busting my ass working.

For me, the point of retirement isn't simply to stop working; it's to enjoy myself and do the things that I couldn't do because I was working. Many of those things cost money. I am 48, with a NW of $2.5m, and theoretically could stop working now. It wouldn't be dying, but it would sure feel like it.

[Anonymous]

Anonymous wrote:

Anonymous wrote:
Anonymous wrote:
Anonymous wrote:
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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.



There are states where there are 0% taxes on retirement account withdrawals or 0% income taxes. Plus done states have other perks like reduced property taxes, lower rates for insurance on basically everything, and much lower cost of living overall. Paying 0% income tax on 401k income is huge amounts of money to consider. It isn't worth it at all to stay in this region in retirement to pay 3x sticker price on everything just to have access to amenities and a job market you no longer need.

Fairfax County has reduced property taxes for seniors at certain income levels (it phases in). In general, if you have lower taxes in an area you will have fewer amenities as well. Maybe you don't use those amenities, but there are many amenities for seniors in these areas as well (for example the rec centers and programming for seniors there and through our senior centers, OLLI at GMU, etc.). Health care is top notch here as compared to lower income areas. Many people also have children and grandchildren near them if they stay. I think you are overstating it when you say 3x sticker price on everything. This area is pretty good if you have your house paid off and you want to be active as a senior citizen. There is a lot going on here.

Seniors don’t qualify for property tax relief in Fairfax if they have low incomes but assets over $340K (excluding the residence). Most DCUM types wouldn’t qualify.

[Anonymous]

Anonymous wrote:

Anonymous wrote:I always feel that DCUM oversaves

I don't get why people need over 100k in retirement. For most people SS almost gets you halfway there. And SS isn't going away, the age might go up and benefits might slightly decrease but most people should be expecting at least 2500 a month if they are working

Main point being 1-3 million retirement account fund at age 60-65 is plenty.

Some realistic benchmarks 1 million at 55

500k at 45

250k at 35

Because I like to take at least one ski trip out west each year. Because I plan on spending a month in Europe every year. Because I live cooking nice dishes and eating out at good restaurants. Because I plan to have a seasonal home. Because I want to enjoy myself, after busting my ass working.

For me, the point of retirement isn't simply to stop working; it's to enjoy myself and do the things that I couldn't do because I was working. Many of those things cost money. I am 48, with a NW of $2.5m, and theoretically could stop working now. It wouldn't be dying, but it would sure feel like it.

This. We are late 40’s with similar net worth in addition to getting some passive income on real estate investments currently. Prob retire in 7-10 years.

I also happen to like my job and can work 1 day a week as needed to keep my skills during retirement when we are not traveling. But yes, we also plan to spend maybe 3 months abroad every year exploring other places while keeping a home base in the states. Currently vacationing 2 weeks abroad is nothing like being able to live and immerse yourself in another country/culture.

[Anonymous]

We have about $300k in our retirement accounts and about $150k in home equity at age 56.

The outlook is that we'll be working many more years (I hope!), continue taking our driving vacations once or twice a year and eventually move on to some low cost part of the country. Hopefully, near our kids where ever that is.

[Anonymous]

Anonymous wrote:We have about $300k in our retirement accounts and about $150k in home equity at age 56.

The outlook is that we'll be working many more years (I hope!), continue taking our driving vacations once or twice a year and eventually move on to some low cost part of the country. Hopefully, near our kids where ever that is.

Do you worry about future?

[Anonymous]

Anonymous wrote:

Anonymous wrote:We have about $300k in our retirement accounts and about $150k in home equity at age 56.

The outlook is that we'll be working many more years (I hope!), continue taking our driving vacations once or twice a year and eventually move on to some low cost part of the country. Hopefully, near our kids where ever that is.

Do you worry about future?

Oh, sure. We've done what we've done and here we are. There will be no "retirement" in the DCUM way if that's what you mean.
If I were a betting man, I would say that one of us will die in bed at the house and the other will pass in a Medicaid facility somewhere down the line. We all end up dead.

[Anonymous]

OP, don't count the pension money in with the other. List that separately with the benefit and don't roll the value in to your 401k value that you listed.

You did not include your current HHI that I have seen, nor current housing costs (mortgage $, taxes, insurance) and that is relevant assuming that will be your debt at retirement.

No one can say with what you have listed now.

Health insurances costs are the wild card for most of us.

[Anonymous]

This thread is depressing. Now I am convinced I will have to move abroad to live a happy retirement. Ecuador, here I come!

[Anonymous]

Anonymous wrote:This thread is depressing. Now I am convinced I will have to move abroad to live a happy retirement. Ecuador, here I come!

Seriously why not?

[Anonymous]

I am blessed to have a husband who convinced me to be a big saver as soon as we got married. He set a retirement goal that at a 4% return would generate income equal to our normal household income so that life would go on as usual. Well we exceeded that goal! The message is start saving when you are young and invest wisely. The benefits of compounding are enormous.

[Anonymous]

Anonymous wrote:I am blessed to have a husband who convinced me to be a big saver as soon as we got married. He set a retirement goal that at a 4% return would generate income equal to our normal household income so that life would go on as usual. Well we exceeded that goal! The message is start saving when you are young and invest wisely. The benefits of compounding are enormous.

At the start did you project what your household income would be just before retirement (i.e. 35 years later)?

[Anonymous]

Anonymous wrote:This thread is depressing. Now I am convinced I will have to move abroad to live a happy retirement. Ecuador, here I come!

+100000%


I plan on moving abroad. American healthcare is horrendous. People need to stop being scared. The US is horrendously overpriced for retirement. No need to be scared or let a language barrier get in the way. In many parts of the world SS alone will be enough to live off of, then when you add in your reitment savings you'll have plenty to live off of.

[Anonymous]

Anonymous wrote:

Anonymous wrote:This thread is depressing. Now I am convinced I will have to move abroad to live a happy retirement. Ecuador, here I come!

+100000%


I plan on moving abroad. American healthcare is horrendous. People need to stop being scared. The US is horrendously overpriced for retirement. No need to be scared or let a language barrier get in the way. In many parts of the world SS alone will be enough to live off of, then when you add in your reitment savings you'll have plenty to live off of.

Where, exactly? Please share.

[Anonymous]

Anonymous wrote:This thread is depressing. Now I am convinced I will have to move abroad to live a happy retirement. Ecuador, here I come!

I mean that’s what places like Rosarito in Mexico are, they’re for people who can’t afford to retire on the beach here.