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[quote=Anonymous]

1) You need to understand what your expenses are or will be in retirement. Calculate them in today's dollars. The biggest one for most people is housing. Without a baseline understanding of your spend, you can't really know how much you need. Most people require something like 70% of current HHI. Remember that taxes on earned income plus fica etc are higher than taxes on retirement monies, in general.

2) an investment calculator will show you an approx of what your 200k will be in 16 years and you can play around with how much you are putting in. If you put in 24k/year (you are looking at 1.2-1.4 m (conservatively) in 16 years.  A 4% withdrawal strategy should be fine at 58--so if you have 1.2 million at retirement, you can draw an additional 48k/year in addition to your pension. I did not include employer match here..a basic investment calculator will allow you to play with different scenarios.

3) investigate your pension--assume it has a COL increase, correct?

4) add up your pension plus 4% withdrawal from 401k, and that is your baseline. Look up what your social security will be at 62/67/70---if you have a decent life expectacy, wait at least until 67 and layer that in. With 78k in pension, plus 48k in 401k, plus ??? in social security you will likely have greater spending power than you do right now, esp with lower taxation.

Adding up those things, that is your retirement budget. Your biggest expense between 58 and 65 will be medical insurance, unless that is already covered elsewhere. [/quote]

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