Reply to How much do people have saved for retirement?

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[quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous]OP, what's your current HHI, and are you on track to have 25 times that saved by retirement?[/quote]
not OP but we will never be able to save that much money for retirement.  I guess we will be destitute. [/quote]

Can someone explain why it’s 25 times your current hhi?  We currently make 350k per year.  We have a big house payment, daycare, and lots of other expenses that we definitely don’t plan on having in retirement.  There is no way we need that same hhi when we are retired assuming no house payment.  Shouldn’t it really be 25 times tour expected yearly expenses, not 25 times your current hhi?[/quote]

25 times your anticipated expenses, not your current HHI.  From Forbes:

"The 25x Rule is a way to estimate how much money you need to save for retirement. It works by estimating the annual retirement income you expect to provide from your own savings and multiplying that number by 25.

For example, let’s assume you’ve settled on a retirement budget of $75,000 a year. In this scenario, Social Security, pensions, a part-time job or other sources of income cover $25,000 of this amount, so you must cover the remaining $50,000 with your investments. According to the 25x Rule, you would need to save at least $1.25 million to be able to safely withdraw $50,000 of income in your first year of retirement. And keep in mind that depending on the type of account the money is withdrawn from, you may owe income or capital gains tax.

You’re able to safely withdraw this amount without depleting your portfolio early thanks to another personal finance guideline, the 4% Rule."[/quote]

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