Reply to So how do you know if you're "on track" with retirement savings?

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[quote=Anonymous][quote=Anonymous]With your house paid off and your children grown and out on their own, I assume you can meet all your basic expenses (food, clothing, etc.) on the $60,000 a year pension. Anything in addition would be for extras (travel, helping out your kids, etc.). I'm assuming one or both of you will also get at least a couple of thousand dollars of social security a month on top of that.

It sounds to me like you are in excellent shape![/quote]

Agree that OP is in good shape, but it is unrealistic for someone making $300,000 to live on $60,000 in retirement easily.  OP must know this since their house is paid off now, but a surprisingly large amount of most people's "mortgage" payment is really escrow for taxes and insurance, and that doesn't go away when the mortgage is paid off.  In fact, it will go up, if you move somewhere that is hurricane-prone.  Further, retirees usually have pent up demand for travel (even if it is to see the grandchildren), gifts for grandchildren, etc.  You should make a retirement budget and be very realistic about what you're going to want to do in retirement.   OP said they plan to continue contributing to their 401k, which may be enough, but I don't think they should stop saving yet.  Particularly in this economy -- you never know what will happen between now and retirement.  [/quote]

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